ACC 409 CH 4 T/F EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++

ACC 409 CH 4 T/F EXAM QUESTIONS AND ANSWERS

WITH COMPLETE SOLUTIONS GRADED A++


Risk is the uncertainty about events and/or their outcomes that could have a

material effect on the organization.

True

False

T

Risk is cumulative. If business risk is very high, the auditor should make a

decision to not be associated with a client because engagement risk will be too

high.

True

False

T

To assess management's integrity, the auditor may interview management.

True

False

T

Controls are an accounting related object and do not extend beyond the

accounting and finance activities.

True

False

, F

Residual audit risk is the remaining risk in specific account balances after

assessing all factors dealing with expectation about the correctness of account

balances.

True

False

T

A basic premise underlying analytical procedures is that implausible

relationships among data may reasonably be expected to exist.

True

False

F

Ratio analysis only involves a year-to-year comparison of account balances.

True

False

F

Trend analysis is proven to be more effective than ratio analysis.

True

False

F

Analytical techniques contain a combination of both quantitative and qualitative

techniques.