Which party has the primary responsibility to oversee an organization’s financial reporting and internal control process?

Part 1

Question

Question 1

6 out of 6 points

Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.

Question 2

6 out of 6 points

If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:

Question 3

6 out of 6 points

If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:

Question 4

6 out of 6 points

When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:

Question 5

6 out of 6 points

When the auditor is attempting to determine the extent to which external users rely on a client’s financial statements, they may consider several factors except

for:

Question 6

6 out of 6 points

Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:

Question 7

6 out of 6 points

In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:

Question 8

6 out of 6 points

When considering internal controls, an important point to consider is that:

Question 9

6 out of 6 points

Narratives, flowcharts, and internal control questionnaires are three common methods of:

Question 10

6 out of 6 points

The employee in charge of authorizing credit to the company’s customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

Question 11

6 out of 6 points

Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

Question 12

6 out of 6 points

Financial statement manipulation risk is arguably present for all companies’ financial statements. However, the risk is elevated for companies that:

Question 13

6 out of 6 points

Which party has the primary responsibility to oversee an organization’s financial reporting and internal control process?

Question 14

6 out of 6 points

Who is most likely to perpetrate fraudulent financial reporting?

Question 15

6 out of 6 points

Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

Question 16

6 out of 6 points

An example of a physical control is:

Question 17

6 out of 6 points