Gleim Chapter 4 Quiz with verified
answers passed
The objective of performing analytical procedures as risk assessment procedures in an audit is
to identify - correct answer ✔✔Unusual transactions and events.
In appropriate circumstances, an auditor may refer to a specialist when the audit report
expresses a(n) - correct answer ✔✔Qualified and Adverse Opinion
The acceptable level of detection risk is inversely related to the - correct answer ✔✔Assurance
provided by substantive procedures.
During an audit, an internal auditor may provide direct assistance to an independent CPA in -
correct answer ✔✔Obtaining an Understanding of Internal Control, Performing Tests of
Controls, and Performing Substantive Tests
Which of the following factors would most likely cause an auditor not to accept a new audit
engagement? - correct answer ✔✔Concluding that the entity's management probably lacks
integrity.
The most accurate term for the risk that the auditor may express an inappropriate opinion on
financial statements that are materially misstated is - correct answer ✔✔Audit risk.
The steps that an audit firm should take prior to accepting an audit engagement include all of
the following except - correct answer ✔✔Obtaining a sufficient understanding of the entity and
its environment.
, Which of the following statements about materiality is most likely to be true? - correct answer
✔✔Performance materiality is less than materiality for the financial statements as a whole.
An auditor's engagement letter most likely will include - correct answer ✔✔Management's
acknowledgment of its responsibility for maintaining effective internal control.
Which of the following elements ultimately determines the specific auditing procedures that are
necessary in the circumstances to provide a reasonable basis for an opinion? - correct answer
✔✔Auditor judgment.
Which of the following statements concerning noncompliance with laws and regulations by
clients is correct? - correct answer ✔✔An auditor has responsibility to detect noncompliance
with laws and regulations that has a direct effect on the financial statements.
In developing written audit plans, an auditor should design specific audit procedures that relate
primarily to the - correct answer ✔✔Financial statement assertions
The risk that an auditor's procedures will lead to the conclusion that a material misstatement
does not exist in an account balance when, in fact, such misstatement does exist is - correct
answer ✔✔Detection risk.
Inherent risk is - correct answer ✔✔The susceptibility of an assertion to a material
misstatement before consideration of related internal controls.
To test the effectiveness of controls, an auditor ordinarily selects from a variety of techniques,
including - correct answer ✔✔Reperformance and observation.
The concepts of audit risk and materiality are interrelated and must be considered together by
the auditor. Which of the following is true? - correct answer ✔✔The phrase in the auditor's
report "present fairly, in all material respects, in accordance with accounting principles generally
answers passed
The objective of performing analytical procedures as risk assessment procedures in an audit is
to identify - correct answer ✔✔Unusual transactions and events.
In appropriate circumstances, an auditor may refer to a specialist when the audit report
expresses a(n) - correct answer ✔✔Qualified and Adverse Opinion
The acceptable level of detection risk is inversely related to the - correct answer ✔✔Assurance
provided by substantive procedures.
During an audit, an internal auditor may provide direct assistance to an independent CPA in -
correct answer ✔✔Obtaining an Understanding of Internal Control, Performing Tests of
Controls, and Performing Substantive Tests
Which of the following factors would most likely cause an auditor not to accept a new audit
engagement? - correct answer ✔✔Concluding that the entity's management probably lacks
integrity.
The most accurate term for the risk that the auditor may express an inappropriate opinion on
financial statements that are materially misstated is - correct answer ✔✔Audit risk.
The steps that an audit firm should take prior to accepting an audit engagement include all of
the following except - correct answer ✔✔Obtaining a sufficient understanding of the entity and
its environment.
, Which of the following statements about materiality is most likely to be true? - correct answer
✔✔Performance materiality is less than materiality for the financial statements as a whole.
An auditor's engagement letter most likely will include - correct answer ✔✔Management's
acknowledgment of its responsibility for maintaining effective internal control.
Which of the following elements ultimately determines the specific auditing procedures that are
necessary in the circumstances to provide a reasonable basis for an opinion? - correct answer
✔✔Auditor judgment.
Which of the following statements concerning noncompliance with laws and regulations by
clients is correct? - correct answer ✔✔An auditor has responsibility to detect noncompliance
with laws and regulations that has a direct effect on the financial statements.
In developing written audit plans, an auditor should design specific audit procedures that relate
primarily to the - correct answer ✔✔Financial statement assertions
The risk that an auditor's procedures will lead to the conclusion that a material misstatement
does not exist in an account balance when, in fact, such misstatement does exist is - correct
answer ✔✔Detection risk.
Inherent risk is - correct answer ✔✔The susceptibility of an assertion to a material
misstatement before consideration of related internal controls.
To test the effectiveness of controls, an auditor ordinarily selects from a variety of techniques,
including - correct answer ✔✔Reperformance and observation.
The concepts of audit risk and materiality are interrelated and must be considered together by
the auditor. Which of the following is true? - correct answer ✔✔The phrase in the auditor's
report "present fairly, in all material respects, in accordance with accounting principles generally
