, 1 of 164
Term
Which of the following audit procedures is most likely to assist an
auditor in identifying conditions and events that may indicate
substantial doubt about an entity's ability to continue as a going
concern?
a. review compliance with the terms of debt agreements
b. review management's plans to dispose of assets
c. evaluate management's plans to borrow money or restructure
debt
d. consider management's plans to reduce or delay expenditures
Give this one a try later!
c d
a b
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2 of 164
Term
An audited company has not paid its 2018 audit fees. According to
the AICPA Code of Professional Conduct, for the auditor to be
considered independent with respect to the 2019 audit, the audit
2018 audit fees must be paid before the
a. 2018 report is issued
,b. 2019 fieldwork is started
c. 2019 repot is issued
d. 2020 fieldwork is started
Give this one a try later!
c b
a d
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, 3 of 164
Term
Smith Corp. has numerous customers. A customer file is maintained
and includes a customer record with a name, an address, a credit
limit, and an account balance. The auditor wishes to test this file to
determine whether credit limits are being exceeded. The best
procedure for the auditor to follow would be to
a. develop test data that would cause some account balances to
exceed the credit limit and determine if the system properly detects
such situations
b. develop a program to compare credit limits with account
balances and print out the details of any account with a a balance
exceeding its credit limit
c. request a printout of a account balances so that they can be
manually checked against the credit limits
d. request a printout of a sample of account balances so that they
can be individually checked against the respective credit limits
Give this one a try later!
c b
d a
Don't know?
4 of 164
Term
Which of the following audit procedures is most likely to assist an
auditor in identifying conditions and events that may indicate
substantial doubt about an entity's ability to continue as a going
concern?
a. review compliance with the terms of debt agreements
b. review management's plans to dispose of assets
c. evaluate management's plans to borrow money or restructure
debt
d. consider management's plans to reduce or delay expenditures
Give this one a try later!
c d
a b
Don't know?
2 of 164
Term
An audited company has not paid its 2018 audit fees. According to
the AICPA Code of Professional Conduct, for the auditor to be
considered independent with respect to the 2019 audit, the audit
2018 audit fees must be paid before the
a. 2018 report is issued
,b. 2019 fieldwork is started
c. 2019 repot is issued
d. 2020 fieldwork is started
Give this one a try later!
c b
a d
Don't know?
, 3 of 164
Term
Smith Corp. has numerous customers. A customer file is maintained
and includes a customer record with a name, an address, a credit
limit, and an account balance. The auditor wishes to test this file to
determine whether credit limits are being exceeded. The best
procedure for the auditor to follow would be to
a. develop test data that would cause some account balances to
exceed the credit limit and determine if the system properly detects
such situations
b. develop a program to compare credit limits with account
balances and print out the details of any account with a a balance
exceeding its credit limit
c. request a printout of a account balances so that they can be
manually checked against the credit limits
d. request a printout of a sample of account balances so that they
can be individually checked against the respective credit limits
Give this one a try later!
c b
d a
Don't know?
4 of 164
