Chapter-final.docVIP

PAGE  13-PAGE 14 CHAPTER 13 Multiple-Choice Questions 1. easyA listing of all the things which the auditor will do to gather sufficient, competent evidence is the:ba. audit strategy.b. audit program.c. audit procedure.d. audit risk model.2. easyShown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests?b1. procedures to obtain an understanding of internal control2. tests of controls3. tests of transactions4. analytical procedures5. tests of details of balancesa. 1, 2, and 3.b. 3, 4, and 5.c. 2, 3, and 5.d. 2, 3, and 4.3. easyCollectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor’s:ca. audit strategy.b. tests of controls.c. risk assessment procedures.d. tests of transactions.4.For efficiency, tests of controls are frequently done at the same time as:easya. analytical procedures.cb. compliance tests.c. tests of transactions.d. tests of details of balances.5. easyWhich of the following procedures are frequently performed in response to the auditor’s assessment of the risk of material misstatement?da. Analytical proceduresb. Tests of transactionsc. Tests of details of balancesd. All of the above6.In which stage(s) of an audit can analytical procedures be performed?easya. In the planning stage.db. In conjunction with tests of transactions and tests of details of balances.c. In the completion stage.d. During all three stages. 7.Tests of controls may include which of the following types of evidence?easya. Observationdb. Reperformancec. Observationd. All of the above8.The purpose of tests of controls is to provide reasonable assurance that the:easya. accounting treatment of transactions and balances is valid and proper.b