Which of the following procedures would a CPA most likely perform during the planning stage of the audit?
Evaluate the reasonableness of management’s allowance for doubtful accounts. Determine areas where there is a higher risk of material misstatement. Evaluate the significance of uncorrected misstatements.
Which of the following is an analytical procedure that an auditor most likely would perform during the final review stage of an audit?
Which of the following is an analytical procedure that an auditor most likely would perform during the final review stage of an audit?
Reading the financial statements and considering whether there are any unusual or unexpected balances that were not previously identified
.
Which of the following procedures would a CPA least likely perform during the planning stage of the audit?
Which of the following procedures would a CPA most likely perform during the planning stage of the audit?
Evaluate the reasonableness of management’s allowance for doubtful accounts. Determine areas where there is a higher risk of material misstatement. Evaluate the significance of uncorrected misstatements.
What are the 5 audit procedures?
There are five phases of our audit process:
Selection, Planning, Execution, Reporting, and Follow-Up
.
Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit?
| Which statement is incorrect when auditing in a CIS environment? d | Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit? d | Which of the following least likely indicates a complexity of computer processing? d |
|---|
What are the two most important qualities for an operational auditor?
18) The two most important qualities for an operational auditor to possess are
independence and competence
.
Which of the following procedures will an auditor most likely perform?
Explanation: Auditor most likely perform the procedure in searching for unrecorded liabilities is
vouch a sample of cash
…
Which assertion has the greatest emphasis when auditing accounts payable?
The auditor’s primary concern with accounts payable is
that of existence
.
Which of the following procedures would an auditor most likely perform for year end accounts receivable?
Which of the following procedures will an auditor most likely perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?
Inspect the shipping records documenting the merchandise sold to the debtors
.
What is your primary emphasis as the auditor over controls?
The primary emphasis by auditors is on controls over:
classes of transactions
. An auditor should consider two key issues when obtaining an understanding of a client’s internal controls.
What are the 7 audit procedures?
Audit procedures to obtain audit evidence can include
inspection, observation, confirmation, recalculation, reperformance, and analytical procedures
, often in some combination, in addition to inquiry.
What are the 7 audit assertions?
Companies must attest to assertions of
existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure
.
What are the 14 steps of auditing?
- Receive vague audit assignment.
- Gather information about audit subject.
- Determine audit criteria.
- Break the universe into pieces.
- Identify inherent risks.
- Refine audit objective and sub-objectives.
- Identify controls and assess control risk.
- Choose methodologies.
Which of the following will not affect audit in a CIS environment?
Evaluation of inherent risk and control risk
.
What is continuous audit approach?
Continuous auditing is
a method used to perform control and risk assessments automatically on a more frequent basis
. Continuous auditing focuses on testing for the prevalence of a risk and the effectiveness of a control. A framework and detailed procedures, along with technology, are key to enabling such an approach.
What is auditing in a CIS environment?
For purposes of International Standards on Auditing, a CIS environment exists
when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit
, whether that computer is operated by the entity or by a third party.
