Auditing: a Practical Approach

Package Title: Clicker Questions

Course Title: Moroney, Auditing: A Practical Approach, Second Canadian Edition

Chapter Number: 01

Shuffle: No

Question type: Multiple Choice

1) For a financial statement audit, the accountable party is the

a) management.

b) shareholders.

c) company.

d) auditors.

Answer: c

2) A listed entity is required to be audited by a member in good standing with

a) CPAB.

b) CSA.

c) CPA Canada.

d) OSFI.

Answer: a

3) Comprehensive audits encompass elements of a(n)

a) compliance audit.

b) operational audit.

c) financial statement audit.

d) all of the above.

Answer: d

4) An audit provides

a) moderate assurance.

b) negative assurance.

c) absolute assurance.

d) reasonable assurance.

Answer: d

5) An engagement to report if anything came to attention which would lead to the belief that the information is not fairly presented is known as a(n)

a) compilation engagement.

b) review engagement.

c) consultancy engagement.

d) audit engagement.

Answer: b

6) All of the following comprise differences between an audit and a review, except

a) a review may be less expensive than the cost of an audit.

b) the scope of a review will be smaller than the scope of an audit.

c) a review will provide lower assurance than an audit.

d) for a review, the practitioner doesn’t have to be independent, but for an audit, one does.

Answer: d

7) For a financial report to be reliable, it must

a) be free from material misstatement.

b) have an impact on the decisions made by users regarding the performance of the entity.

c) be periodically audited by an independent auditor.

d) none of the above.

Answer: a

8) Based on the evidence gathered, if an auditor concludes all noted misstatements in the financial statements to be immaterial, individually and collectively, then the auditor would

a) resign from the engagement.

b) emphasize the errors in the audit report.

c) issue an unqualified...