ACC 403 ACC403 Quiz 4 (Strayer)
ACC 403 Quiz 4
This quiz consists of 15 multiple choice questions and covers the material in Chapter 9
The risk that audit evidence for a segment will fail to detect misstatements exceeding performance materiality levels is:
Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.
Auditing standards ________ that the basis used to determine the preliminary judgment about materiality be documented in the audit files.
If planned detection risk is reduced, the amount of evidence the auditor accumulates will
The measurement of the auditor's assessment of the likelihood that there are material misstatements due to error or fraud in a segment before considering the effectiveness of internal controls is defined as:
To what extent do auditors typically rely on internal controls of their public company clients?
Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:
When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for:
If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:
Auditors typically rely on internal controls of their private company clients:
When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally:
The scope paragraph of the standard unqualified auditor's report states that "… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given?
________ misstatements are those where the auditor can determine the amount of the misstatement in the account.
When dealing with audit risk:
When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as: