최신 AA 무료덤프 - CPA Audit & Insurance
One category of fraud is fraudulent statements. This is usually in the form of falsication of nancial statements in order to obtain some form of improper benet. It also includes
falsifying documents such as employee credentials.
Which one of the following is correct about risk assessment procedures related to fraud by the external auditor?
falsifying documents such as employee credentials.
Which one of the following is correct about risk assessment procedures related to fraud by the external auditor?
정답: A
The internal auditing department has been assigned to perform an audit of a division. Based on background review, the auditor knows the following about management policies:
Company policy is to rapidly promote divisional managers who show significant success. Thus, successful managers rarely stay at a division for more than three years.
A significant portion of division management's compensation comes in the form of bonuses based on the division's profitability.
The division was identified by senior management as a turnaround opportunity. The division is growing, but is not scheduled for a full audit by the external auditors this year. The division has been growing about 7% per year for the past three years and uses a standard cost system.
During the preliminary review, the auditor notes the following changes in financial data compared to the prior year:
Sales have increased by 10%.
Cost of goods sold has increased by 2%.
Inventory has increased by 15%.
Divisional net income has increased by 8%.
Assume the auditor found that there was a plan to overstate inventory and therefore increase reported profits for the division. If reported correctly, the division would not have shown an increase in net income. The auditor has substantial evidence that the divisional manager was aware of and approved the plan to overstate inventory. There is also some evidence that the manager may have been responsible for the implementation of the plan.
The appropriate audit action would be to
Company policy is to rapidly promote divisional managers who show significant success. Thus, successful managers rarely stay at a division for more than three years.
A significant portion of division management's compensation comes in the form of bonuses based on the division's profitability.
The division was identified by senior management as a turnaround opportunity. The division is growing, but is not scheduled for a full audit by the external auditors this year. The division has been growing about 7% per year for the past three years and uses a standard cost system.
During the preliminary review, the auditor notes the following changes in financial data compared to the prior year:
Sales have increased by 10%.
Cost of goods sold has increased by 2%.
Inventory has increased by 15%.
Divisional net income has increased by 8%.
Assume the auditor found that there was a plan to overstate inventory and therefore increase reported profits for the division. If reported correctly, the division would not have shown an increase in net income. The auditor has substantial evidence that the divisional manager was aware of and approved the plan to overstate inventory. There is also some evidence that the manager may have been responsible for the implementation of the plan.
The appropriate audit action would be to
정답: C
The universal audit approach requires all companies to prepare accounts for their shareholders, to have them audited and to le them at a public registry where they can be accessed by parties who might do business with the company.
Which of the following services provides the lowest level of assurance about a company's financial statements?
Which of the following services provides the lowest level of assurance about a company's financial statements?
정답: C
When questions arise on the appropriateness of the going concern assumption, some of
the normal audit procedures carried out by the auditors may take on an additional significance. Auditors may also have to carry out additional procedures or to update information obtained earlier. The ISA lists various procedures which the auditors shall carry out in this context.
Which of the following is not included in the list of additional audit procedures that are to be carried out by the auditor?
the normal audit procedures carried out by the auditors may take on an additional significance. Auditors may also have to carry out additional procedures or to update information obtained earlier. The ISA lists various procedures which the auditors shall carry out in this context.
Which of the following is not included in the list of additional audit procedures that are to be carried out by the auditor?
정답: D
Deteriora Ltd has recently started up the audit of a new client, Thatch plc. The auditor has identified that Thatch plc has few employees in its accounting department.
Which of the following is the MOST appropriate approach that should be used by Deteriora Ltd under this circumstance?
Which of the following is the MOST appropriate approach that should be used by Deteriora Ltd under this circumstance?
정답: D
Acer Ltd is a client of your firm and is seeking funding in order to expand the business. The directors have prepared profit and cash flow forecasts for the next three years ending 30 June 2016 in support of the request for funding. The company's bankers require this information to be reviewed by independent accountants and the board of directors has requested that your firm undertakes this review.
The following is an extract from an independent accountant's unmodified report on the profit and cash flow forecasts:
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following BEST describes the type of assurance provided by this statement?
The following is an extract from an independent accountant's unmodified report on the profit and cash flow forecasts:
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following BEST describes the type of assurance provided by this statement?
정답: D
The following is an extract from an independent accountant's unmodified report on a profit forecast:
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following is the most appropriate type of assurance provided by this statement?
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following is the most appropriate type of assurance provided by this statement?
정답: D
An auditor performs an analytical review by comparing the gross margins of various divisional operations with those of other divisions and with the individual division's performance in previous years. The auditor notes a significant increase in the gross margin at one division. The auditor does the preliminary investigation and notes that there were no changes in products, production methods, or divisional management during the year.
Based on the above information, the most likely cause of the increase in gross margin would be
Based on the above information, the most likely cause of the increase in gross margin would be
정답: A