Week 2 Quiz and Multiple Choice

Week 2 Quiz

1. Evidence obtained from third parties, such as, vendors or creditors, is more reliable than evidence obtained from an audit client.　 (True/False) (10%)

True

2. According to the third generally accepted standard of audit fieldwork, what should auditors obtain in order to afford a reasonable basis for an opinion on the financial statements? (30%)

Sufficient competent audit evidence

3. List the components of an audit risk model. (30%)

Audit risk= Inherent risk x control risk x detection risk

4. What are the categories of management assertions? (30%)

Transaction level assertions, Account Balance assertions, Presentation and disclosure assertions

|REQUIRED:    Indicate the best answer choice for each of the following. |

|  |

|    1. |Choices about audit evidence are influenced by all of the following except: |  |

|  |a. |the auditor's understanding of the business and industry. |  |

|  |b. |decisions about inherent risk and   control risk. |  |

|  |c. |comparisons of the auditor's   expectations of the financial statements with the client's books and records. |  |

|  |d. |decisions about immaterial risk   factors. |  |

|  |e. |decisions about assertions that   are material to the financial statements. |  |

| ...