• Question 6 The reliance placed on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily
• Question 7 An auditor uses the assessed level of the risk of material misstatement to
• Question 8 The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the
• Question 9 An audit client failed to maintain copies of its procedures manuals and organizational flowcharts . What should the auditor do in an audit of financial statements ?
• Question 10 As a result of tests of controls , an auditor assesses control risk too high . This incorrect assessment most likely occurred because
• Question 11 To provide assurance that each voucher is submitted and paid only once , an auditor most likely would examine a sample of paid vouchers and determine whether each voucher is
• Question 12 A client erroneously recorded a large purchase twice . Which of the following controls would be most likely to detect this error in a timely and efficient manner ?
• Question 13 A client ’ s materials-purchasing cycle begins with requisitions from user departments and ends with the receipt of materials and the recognition of a liability . An auditor ’ s primary objective in reviewing this cycle is to
• Question 14 The company being audited has an internal auditor that is both competent and objective . The independent auditor wants to assign tasks for the internal auditor to perform . Under these circumstances , the independent auditor may
• Question 15 An effective control that protects against the preparation of improper or inaccurate disbursements would be to require that all checks be
• Question 16 During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing
• Question 17 When assessing internal auditors ' objectivity , an independent auditor should