OMGT 4313 PRACTICE EXAMINATION
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ AICPA recommends a five-step process to plan, perform, and evaluate.
Answer: plan the ADA,access and prepare the data to be used in the
ADA,consider the relevance and reliability of the data used,perform the
ADA, andevaluate and interpret the results of the ADA.
◍ 26) A technique used to translate customer requirements into technical
requirements is:A) quality assurance.B) statistical quality control.C) quality
function deployment.D) continuous improvement..
Answer: C) quality function deployment.
◍ Materiality.
Answer: The maximum amount by which the auditor believes the financial
statements could be misstated and still not affect the decisions of users.
◍ Presentationperiod under audit.
Answer: Transactions and events are appropriately aggregated or
disaggregated and clearly described, and related disclosures are relevant and
understandable in the context of the requirements of the applicable financial
reporting framework.
◍ 22) Costs incurred by defects that occur prior to delivery to the customer are
called:A) external failure costs.B) internal failure costs.C) appraisal costs.D)
prevention costs..
Answer: B) internal failure costs.
◍ Authorizationperiod under audit.
Answer: All transactions and events have been properly authorized.**
, ◍ Ethics.
Answer: A system or code of conduct based on moral duties and obligations
that indicates how an individual should behave.
◍ Assurance Services.
Answer: Professional services that enhance the quality of information, or its
context, for decision makers. Many assurance services involve some form of
attestation.
◍ Auditing.
Answer: A systematic process of (1) objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between those assertions and
established criteria and (2) communicating the results to interested users.
◍ 15) Producer's risk rises as consumer's risk falls.T F.
Answer: True
◍ Audit risk.
Answer: The risk that the auditor expresses an inappropriate audit opinion
when the financial statements are materially misstated.
◍ small materiality amount for an account,.
Answer: a larger sample will be needed than if materiality were a larger
amount.
◍ Classificationperiod under audit.
Answer: Transactions and events have been recorded in the proper accounts.
◍ Taguchi's quality loss function runs counter to the notion that a product
falling within tolerance limits is acceptable. T F.
Answer: True
◍ Reliability.
Answer: the diagnosticity of the evidence.
◍ Attest services.
Answer: Services provided by a practitioner engaged to issue a report on
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ AICPA recommends a five-step process to plan, perform, and evaluate.
Answer: plan the ADA,access and prepare the data to be used in the
ADA,consider the relevance and reliability of the data used,perform the
ADA, andevaluate and interpret the results of the ADA.
◍ 26) A technique used to translate customer requirements into technical
requirements is:A) quality assurance.B) statistical quality control.C) quality
function deployment.D) continuous improvement..
Answer: C) quality function deployment.
◍ Materiality.
Answer: The maximum amount by which the auditor believes the financial
statements could be misstated and still not affect the decisions of users.
◍ Presentationperiod under audit.
Answer: Transactions and events are appropriately aggregated or
disaggregated and clearly described, and related disclosures are relevant and
understandable in the context of the requirements of the applicable financial
reporting framework.
◍ 22) Costs incurred by defects that occur prior to delivery to the customer are
called:A) external failure costs.B) internal failure costs.C) appraisal costs.D)
prevention costs..
Answer: B) internal failure costs.
◍ Authorizationperiod under audit.
Answer: All transactions and events have been properly authorized.**
, ◍ Ethics.
Answer: A system or code of conduct based on moral duties and obligations
that indicates how an individual should behave.
◍ Assurance Services.
Answer: Professional services that enhance the quality of information, or its
context, for decision makers. Many assurance services involve some form of
attestation.
◍ Auditing.
Answer: A systematic process of (1) objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between those assertions and
established criteria and (2) communicating the results to interested users.
◍ 15) Producer's risk rises as consumer's risk falls.T F.
Answer: True
◍ Audit risk.
Answer: The risk that the auditor expresses an inappropriate audit opinion
when the financial statements are materially misstated.
◍ small materiality amount for an account,.
Answer: a larger sample will be needed than if materiality were a larger
amount.
◍ Classificationperiod under audit.
Answer: Transactions and events have been recorded in the proper accounts.
◍ Taguchi's quality loss function runs counter to the notion that a product
falling within tolerance limits is acceptable. T F.
Answer: True
◍ Reliability.
Answer: the diagnosticity of the evidence.
◍ Attest services.
Answer: Services provided by a practitioner engaged to issue a report on
