Auditing Principles and Ethical Considerations: A Comprehensive Study
Explores auditing Business Management and core principles in financial audits.
Olivia Smith
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Auditing Principles and Ethical Considerations: A Comprehensive
Study
1. Which of the following statements is most correct regarding errors
and fraud? **
An error is unintentional, whereas fraud is intentional.
Fraud occurs more often than errors in financial statements.
Errors are always fraud and fraud is always errors.
Auditors have more responsibility for finding fraud than errors.
Coaching tip: Fraud is "on purpose." Accidents are "errors."
2. If management insists on financial statement disclosures that the auditor
finds unacceptable, the auditor can: Issue an adverse audit report; Issue a
qualified audit report **Yes; Yes No; No Yes; No No; Yes
Coaching tip: He can also withdraw from the audit.
3. If management insists on financial statement disclosures that the auditor
finds unacceptable, the auditor can do all but which of the following?
issue an adverse audit report
** issue a disclaimer of opinion
withdraw from the engagement
issue a qualified audit report
4. The responsibility for adopting sound accounting policies and
maintaining adequate internal control rests with the:
board of directors
** company management financial statement
auditor company's internal audit department
Coaching tip: Auditors reviews and test controls but management designs
them.
5. The Auditing Standards Board has concluded that analytical procedures
are so important that they are required during:
planning and test of control phases
**planning and completion phases test of control and completion phases
Study
1. Which of the following statements is most correct regarding errors
and fraud? **
An error is unintentional, whereas fraud is intentional.
Fraud occurs more often than errors in financial statements.
Errors are always fraud and fraud is always errors.
Auditors have more responsibility for finding fraud than errors.
Coaching tip: Fraud is "on purpose." Accidents are "errors."
2. If management insists on financial statement disclosures that the auditor
finds unacceptable, the auditor can: Issue an adverse audit report; Issue a
qualified audit report **Yes; Yes No; No Yes; No No; Yes
Coaching tip: He can also withdraw from the audit.
3. If management insists on financial statement disclosures that the auditor
finds unacceptable, the auditor can do all but which of the following?
issue an adverse audit report
** issue a disclaimer of opinion
withdraw from the engagement
issue a qualified audit report
4. The responsibility for adopting sound accounting policies and
maintaining adequate internal control rests with the:
board of directors
** company management financial statement
auditor company's internal audit department
Coaching tip: Auditors reviews and test controls but management designs
them.
5. The Auditing Standards Board has concluded that analytical procedures
are so important that they are required during:
planning and test of control phases
**planning and completion phases test of control and completion phases
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Subject
Accounting