Chapter 3 Quiz

Auditing  Question 3 A. Discuss the audit expectation gap. Your answer should include the following: the main causes of the expectation gap; its main components; and procedures that can be taken to reduce the expectation gap.

S1: Audit debriefing process should be led by the audit manager.S2: An audit benefits the public. Group of answer choices Only S2 is correct. Only S1 is correct. Both S1 and S2 are incorrect. Both S1 and S2 are correct.

5. All of these reasons are important to discuss the types of service with management before performing the audit work, except ___________   Question 5 options:   a)  To avoid misunderstanding   b)  To charge more audit hours and fees   c)  To prepare the auditor for the job   d)  To determine the audit procedures required

2 The two main types of assurance level that auditors can perform are ________ and __________ High (Audit) Moderate (Review) Negative assurance Positive assurance   Question 2 options:   a)  B & C   b)  A & C   c)  A & B   d)  C & D

4. Please answer ASAPP!!!

3   All of these steps will help an auditor minimize litigation risks when performing the audit work, except ___________   Question 3 options:   a)  Have enough legal fees ready    b)  Maintain proper documentation and working papers   c)  Maintaining independence   d)  Perform quality audit work

TRUE OR FALSE: AUDITING 1. The less extensive the evidence-gathering procedures the lower the chances of formulating appropriate conclusion and the higher the level assurance that a practitioner can provide. 2. The concepts and principles on auditing and assurance introduce students to the theories underlying auditing services and provides opportunities to develop technical expertise in applying the concepts learned 3. The practitioner is required to pursue any matter which  may lead to a material adjustment or modification to the subject matter of information 49. An independent auditor may participate in preparing financial statements including accompanying notes. 5. Nature of financial reporting involves preparation of financial statements based on the management’s judgment in applying an applicable financial reporting framework through coordination with the external auditor

QUESTION 4 A. An internal auditor needs to be competent, capable and objective if their services are deemed adequate for the audit purpose. If an internal auditor does not fulfil the requirement for each of the above attributes, the risk of error or inaccuracy in work carried out is increased. Required: i. As an external auditor, how well do you comprehend the internal auditor's competence, capability, and objectivity? Discuss.

QUESTION 2 The risk of the auditor “getting it wrong” or giving opinions that are not 100% accurate will always be present and this is referred to as audit risk. Audit risk is better understood when the components of the risks are understood. Identify and explain the three components of audit risk

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5. Which of these audit evidence is more reliable for an auditor to use in gathering evidence (pick one) than the other:   Written documentation or oral documentation ____________________ 2.Copies of document or original document ____________________

9 Which of these audit evidence is more reliable for an auditor to use in gathering evidence than the other (pick one):   Employee described process or direct knowledge of the process ___________________ External third party documents or internally provided documents ____________________ Copies of document or original documents ____________________

A(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit Select one: a. audit program b. audit procedure c. audit assertion d. audit objective

6. Risk assessment most commonly focuses on two criteria - impact and likelihood. As an organization's risk assessment process evolves, what other criteria might be valuable to consider and why? 1. They should also consider changes in the process since the last audit because that will help them better understand impact and help answer questions about what caused the issue.

What is the primary purpose of an audit? O A. To decrease the workload of employees OB. To increase an organization's profits OC. To implement new technologies ○ D. To verify the correctness of representations made by the entity being audited

10 Which of these two tasks is one of the major responsibilities of an auditor regarding the audited financial statements? Pick one:   Fraud or Material Misstatements ______________________ Reasonable assurance or absolute assurance ______________________

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Accounting & Finance - Auditing  Question 5: Discuss the audit expectation gap. Your answer should include the following: the main causes of the expectation gap; its main components; and procedures that can be taken to reduce the expectation gap.

Question 2 Select the correct responses for below: The audit documentation shall include: (a) The overall audit strategy (b) The audit plan (c) Any significant changes made during the audit engagement to the overall audit strategy or the audit plan, and the reasons for such changes. Mettl Online Assessment © 2021-2031 Revisit Later B Need Help? Contact us: Attempted: 1/20 Select an option +1 (800) 265-6038 (a) and (b) (b) and (c) (a), (b) and (c) (a) and (c) +91 80471-89190

The objective of the auditor is to plan the audit so that it will be performed in an effective manner. The effectiveness of audit deals with. It deals with both error free audit opinion and profitable audit b b. Profitable audit c. None of the options d. Error free audit opinion

: A. Explain Differences between Accountancy and Auditing B. Talk about the Disadvantages of the Occasional Audit

The temporal order of an audit engagement mirrors the audit risk model.   Question 39 options:   True   False