ACC 403 ACC403 Final Exam Part 1 (Strayer)
ACC 403 Final Exam Part 1
This final exam consists of 25 multiple choice questions and covers the material in Chapters 9 through 13.
Auditors typically rely on internal controls of their private company clients:
An auditor who audits a business cycle that has low inherent risk should:
Inherent risk is often high for an account such as
Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.
To what extent do auditors typically rely on internal controls of their public company clients?
Which of the following is responsible for establishing a private company's internal control?
The auditors primary purpose in auditing the client's system of internal control over financial reporting is:
A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:
The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:
Which of the following deal with ongoing or periodic assessment of the quality of internal control by management?
Misappropriation of assets is normally perpetrated by:
Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:
Who is most likely to perpetrate fraudulent financial reporting?
Company management is often under pressure to increase revenue and/or net income. One approach is to use a "bill and hold" arrangement. This is an example of which of the following?
Most cases of fraudulent reporting involve:
A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.
The approach to auditing where the auditor does not test automated controls to reduce assessed control risk is called:
Which of the following is a component of general controls?
Which of the following computer-assisted auditing techniques inserts an audit module in the client's application system to identify specific types of transactions?
The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is:
The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?
Which of the following further audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?
The purpose of tests of controls is to provide reasonable assurance that the:
If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.
A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a: