This document of ACC 490 Final Exam shows the solutions to the following problems:
1. Within the generally accepted auditing standards, the general standards relate primarily to
2. The essence of the due care? standards is that the auditor should not be quilty of
3) Gross negligence can best be defined as
4) Section 18 liability is relatively narrow in scope because it relates only to a false or misleading statement in documents “filed” with the
5) For a particular assertion, contril risk is the risk that
6) Which of the following would not be an important factor in the understanding an entity’s industry, regulatory environment and other external factors?
7) Which of the following would not be considered underlying accounting data?
8) Which of the following would not be considered corroborating information?
9) The importance of the accept/reject decision for a particular client si reflected in the inclusion of “acceptance and continuation of clients” as
10) In the communication with the predecessor auditor, the potential successor should make specific and reasonable inquiries regarding matters that may affect the decision to accept the engagement. Which of the following items are likely to be included in the inquires?
11) The quality control element(s) most directly related to the auditor’s assessment of her competence to perform the audit is (are)
12) In making judgments about materiality at the account balance level, the auditor must consider the relationship between it and financial statement materiality. This should lead the auditor to plan the audit to detect misstatements that
13) The auditor has choosen the preliminary strategy of lower assessed control risk. Which of the following is not? a validly specified component of this strategy?
14) For which of the following accounts is the primarily substantive testing strategy least likely?
15) Which of the following risk factors is an example of an assertion specific inherent risk factor?
16) Which of the following would be considered the most conservative settings for inherent risk and control risk?
17) Which of the following factors are included in a firm’s control environment?
18) “A significant deficiency, or combination of significant deficiencies, that results is more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented ? or detected” is the definition of
19) In PPS sampling plans, the risk of incorrect rejection is
20) In the audit risk model, audit sampling apllies to
