
Module 3
Authored by Rodwin DEUNA
Business
Professional Development
Used 2+ times

AI Actions
Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...
Content View
Student View
20 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Why must an auditor understand the industry, regulatory, and other external factors affecting the entity?
To ensure compliance with internal policies only.
To identify areas where misstatements are less likely.
To anticipate risk areas and understand financial reporting pressures.
To focus solely on the entity's internal operations.
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following is an example of an external factor that auditors should consider under "Industry conditions"?
Internal employee performance.
Market competition and technological changes.
The entity's internal financial policies.
The auditor's personal preferences.
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What does understanding the "nature of the entity" involve, and why is it important for the audit?
It involves grasping the core of what the business is and how it operates, helping the auditor identify where misstatements might arise.
It involves only understanding the financial statements of the entity.
It focuses solely on the legal structure of the entity.
It is limited to analyzing the entity's revenue streams.
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is a potential business risk if a company has high debt and objectives tied to meeting certain debt covenants or raising more capital?
Increased employee turnover
Cash flows might fall short
Expansion into new markets
Reduction in tax liabilities
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is one reason why management's monitoring of financial performance is important for auditors?
It helps auditors create new financial goals for the company
It reveals areas most important to the entity and potential pressure points
It ensures the company complies with all tax regulations
It allows auditors to manage the company's financial processes
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is an example of a financial Key Performance Indicator (KPI)?
Customer satisfaction scores
Gross profit margin
Production yields
Employee engagement scores
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Why might auditors examine budgets and forecasts prepared by management?
To ensure the company meets its annual goals
To identify unexplained variances that might signal errors or manipulation
To help the company create new financial strategies
To reduce the company's operational costs
Access all questions and much more by creating a free account
Create resources
Host any resource
Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever
or continue with

Microsoft
%20(1).png)
Apple
Others
Already have an account?
Similar Resources on Wayground
20 questions
Business Model Canvas
Quiz
•
University - Professi...
19 questions
Les Fondamentaux des Marchés Financiers
Quiz
•
Professional Development
20 questions
Prarambh Training MCQ 1
Quiz
•
Professional Development
16 questions
Selling
Quiz
•
University - Professi...
15 questions
Chapter 5 Cross-cultural negotiation and decision making
Quiz
•
Professional Development
17 questions
Capt RO Meeting - Mar 2023
Quiz
•
Professional Development
19 questions
I.A Stany skupienia substancji
Quiz
•
Professional Development
19 questions
ĐLVT - Ôn tập
Quiz
•
Professional Development
Popular Resources on Wayground
15 questions
Fractions on a Number Line
Quiz
•
3rd Grade
20 questions
Equivalent Fractions
Quiz
•
3rd Grade
25 questions
Multiplication Facts
Quiz
•
5th Grade
22 questions
fractions
Quiz
•
3rd Grade
20 questions
Main Idea and Details
Quiz
•
5th Grade
20 questions
Context Clues
Quiz
•
6th Grade
15 questions
Equivalent Fractions
Quiz
•
4th Grade
20 questions
Figurative Language Review
Quiz
•
6th Grade
Discover more resources for Business
10 questions
How to Email your Teacher
Quiz
•
Professional Development
6 questions
3RD GRADE DECLARATION OF INDEPENDENCE EXIT TICKET
Quiz
•
Professional Development
19 questions
Black History Month Trivia
Quiz
•
6th Grade - Professio...
22 questions
Multiplying Exponents with the Same Base
Quiz
•
9th Grade - Professio...
40 questions
Flags of the World
Quiz
•
KG - Professional Dev...