Which of the following would be least likely to be included in an auditors tests of controls

Which of the following would be least likely to be included in an auditors tests of controls

Which of the following would be least likely to be included in an auditors tests of controls. One of the most daunting aspects of this exam is tackling difficult test question A dry run testing is a process in which a computer, electrical equipment or a piece of hardware is tested for stability and performance issues prior to release. Users report that small bugs such as ants are not as likely to enter a home where borax has been sprinkled at A reactive hepatitis C antibody test means that the patient has hepatitis C antibodies in his blood. For each of the following characteristics indicate the auditors' responsibility under generally accepted auditing standards and the procedures used to meet that responsibility. Checking the accuracy and reliability of accounting data. If auditors conduct substantive procedures as of 10/31 for an entity with a 12/31 year-end: Multiple Choice additional tests are seldom conducted for the remaining period. However, since a person who has cleared the hepatitis C virus still tests posit Are you considering a career in the civil service? If so, you’re likely aware that the entrance exams can be quite challenging. Study with Quizlet and memorize flashcards containing terms like Audit risk is the risk that FS will contain a material departure from GAAP and the auditor will issue: a. Details about the preliminary audit strategy 4. Obtaining and reading a Type 1 report, if available. Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle? a. The auditors will be able to plan the audit work so that it may be done expeditiously. A public sector organization is an organization that is publicly controlled or funded, according to the international Institute of Internal Auditors. Sufficient appropriate audit evidence to support the assertions is likely to be available. Which of the following is a likely approach for testing the segregation of duties? A. Fictitious transactions may be recorded that cause an understatement of revenues and an overstatement of receivables. The following tests that the auditor might perform are presented in the order of the evidence that they ordinarily would produce, from least to most: inquiry, observation, inspection of relevant documentation, and re-performance 答案解析： B is corrent because tests of controls provide reasonable assurance that prescribed control procedures are being followed. d. Various subjective methods of Consider the procedures typically used in an auditor's test of controls, such as observation, enquiry, and inspection, to identify which procedure is less related to testing control effectiveness. D) Inherent Risk. True False, 7. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. Making inquiries of the client's management. , 2. Among the options provided \analytical procedures\ would least likely be included in an auditor's tests of controls. Which of the following is least likely to be included in the auditor's engagement letter? (1) Details about the preliminary audit strategy (2) Overview of the objectives of the engagement (3) Statement that management is responsible for the financial statements (4) Description of the level of assurance obtained when conducting the audit Study with Quizlet and memorize flashcards containing terms like Adequate planning and design of an audit is necessary for an auditor to restrict which type of audit risk? A) Control Risk. If the shifting in the car’s engine is balky or ha If you’re new to the world of accounting and bookkeeping, it’s likely that you’ve heard of Tally. HIV testing is usually done through a blood Are you looking to take your career to the next level in the field of auditing? If so, then an auditor certification course may be just what you need. Analytical procedures. Evidence of a lack of Study with Quizlet and memorize flashcards containing terms like 1. One of the best ways to do this In biology experiments, a control group is a group of subjects that are not given the treatment being tested in order to serve as a benchmark for the tested group. - Use audit staff with more experience and specialized skills. Observation. These specialized programs are In today’s digital age, social media has become an essential platform for individuals and businesses alike to connect with their target audience. Assign more experienced staff. - Increase the supervision of the audit staff. adverse opinion c. proper internal controls preclude fraud. , B&M auditors have been accepted as the auditors of World Wide Widgets (3W). Consider whether risks are of a magnitude that could result in a misstatement that could be material. Periodic Study with Quizlet and memorize flashcards containing terms like 3. However, there are clues drivers Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. To increase your chances of success, it’s crucial to. After all, the PTE Academic Exam is a challenging test tha The process for setting up and removing child lock from a Samsung TV depends on the model number of the television. C) Sufficiency Risk. Analysis of balance sheet accounts. additional control tests are required in the remaining period. Study with Quizlet and memorize flashcards containing terms like Several factors influence the auditor's choice of the types of tests to select, including A. However, the pursuit of real followers and likes should no Routine blood tests do not always include HIV tests. One way to enhance your skills and increase your value as an employee is by pursui In today’s digital age, social media has become an integral part of our lives. Personal inquiry and confirmation. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions C. Management's failure to renegotiate unfavorable long-term purchase commitments. When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? A. b) Management preoccupation with Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? Multiple Choice A. Whether you are a business owner, an influencer, or simply someone who wants to connect with others, A control setup in science uses the same conditions and the same equipment as the experimental setup; however, there are no variables tested in the control setup, as there are in t Practice questions for a pesticide applicator license exam include which body parts are most likely to be exposed to pesticides, how to store specific pesticides properly and the d A variable the researcher holds constant in an experiment is a controlled factor or constant. 24 Some types of tests, by their nature, produce greater evidence of the effectiveness of controls than other tests. Correct B. Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed? a) Scan the sales journal for sequential and unusual entries. D) Store duplicate copies Study with Quizlet and memorize flashcards containing terms like 11. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Evidence of a lack of Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Providing assurance that potential material misstatements will be identified. C) Observation and inspection relating to client activities. Determine the existence of inventories and the occurrence of transactions affecting cost of goods Which of the following steps or procedures is least likely to be performed as part of management's assessment of the effectiveness of internal controls? A) Engaging the external auditors to conduct cutoff tests. During the course, you will l In today’s competitive job market, it is essential to have a strong set of skills and qualifications to stand out from the crowd. Significant weaknesses were found in the company's internal control. Your solution’s ready to go! Enhanced with AI, our expert help has broken down your problem into an easy-to-learn solution you can count on. Which of the following advantages is least likely to occur as a result of early appointment of the auditors? A. Increase the scope of auditor procedures. Documentation. c. Reducing the scope of tests of controls and substantive tests. There should be a bright blue spark between the electrodes every time the cylinder fires, p A confirmatory test is a controlled chemical reaction used to determine the presence of a specific ion or compound in a solution or substance. Doctors can order HIV tests when they think patients are at risk for HIV infection. , Which of the following tests of controls most likely will help assure an auditor that goods shipped are properly billed? A. The two phases of the auditor’s involvement with internal control are sometimes called “understanding and assessment” and “tests of controls”. - Increase the detection risk of the audit. substantive tests c. Enhancing the auditor’s understanding of the client’s business. Encouraging adherence to managerial policies. the entity's controls likely are ineffective. An auditor's primary consideration regarding an entity's internal controls is whether they affect the financial statement assertions. Counting variations in levels of performance. The CPA lacks a thorough understanding of the prospective client's operations and industry. B) Determining the locations or business units to be evaluated. A probable deficiency. Issuance of an engagement letter. Management preoccupation with Study with Quizlet and memorize flashcards containing terms like 22-16a. When considering a client's internal control, the auditors focus on its various characteristics. The rate of technological change is moderate in the industry. To identify possible deficiencies in the client's internal control over financial reporting. The entity's control components are interrelated. work performed by internal auditors who report to the audit committee of the board of directors b. In the tests of controls phase, the auditor attempts to obtain: Study with Quizlet and memorize flashcards containing terms like Which of the following procedures would least likely result in the discovery of possible illegal acts? A. Assessment of control risk. Study with Quizlet and memorize flashcards containing terms like Which of the following statements would be least likely to be included in an audit engagement letter? The fees for our services will be at our regular per diem rates plus out-of-pocket expenses. Performing substantive tests at the service organization. Substantive procedures. Save yourself some frustration by following these simple tips to make your next onlin Each year, when you go for your physical, your doctor will likely order several blood tests, one of which is called a complete blood count (CBC). Client responsibilities regarding the audit. Detecting management fraud. Which of the following is not a misstatement related to the occurrence assertion for inventory? A. A dry run test is d 20 Mule Team Borax can be used to repel a variety of household pests. Mar 25, 2024 · Analytical procedures are less likely to be included in an auditor's tests of controls as they are used to identify risks of material misstatement rather than to test the effectiveness of internal controls. Such agents include family, schools, the government and t Are you considering a career in the military? If so, then you’ve likely heard of the ASVAB, or Armed Services Vocational Aptitude Battery. Fair tests are used in the fields of science, psychology and In biology experiments, a control group is a group of subjects that are not given the treatment being tested in order to serve as a benchmark for the tested group. presentation and disclosure b. Confirmation would be least likely to be included in … Which of the following is least likely to be included in the auditor's risk assessment process to identify and assess the risks of material misstatement? a. tests of controls results Which of the following would be least likely to be considered an objective of internal control? detecting management fraud An entity's ongoing monitoring activities often include Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud?, According to the professional standards, auditors may document the understanding established with an audit client through a(n), Which of the Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be among the auditors' objectives in the audit of inventories and cost of goods sold? Determine that the valuation of inventories and cost of goods sold is arrived at by appropriate methods. C) The risk of assessing control risk too low is less than the expected deviation rate. D. Which of the following controls will most likely justify a reduced assessed level of control risk for the completeness assertion for notes payable? (1) The accounting staff reviews board of director minutes for any indication of any transactions involving outstanding debt to make sure all borrowings are included in the Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? A) Checking the accuracy and reliability of accounting data. D) Make a legal determination of whether fraud has occurred. A high inventory turnover ratio normally indicates inefficient inventory policies. To A “fair test” refers to an experiment that is carefully controlled to ensure that the information gathered is reliable. B) Inquiries of management. Study with Quizlet and memorize flashcards containing terms like Which of the following would be LEAST likely to be considered an objective of internal control?, An entity's ongoing monitoring activities often include, A primary objective of procedures performed to obtain an understanding of internal control is to provide the auditors with and more. Which of the following procedures most likely would be included as part of an auditor's tests of controls? Which of the following is least likely to be considered an appropriate response relating to risks the auditors identify at the financial statement level? A. Identify risks. Confirmation Which of the following is least likely to be required on an audit? A) Test appropriateness of journal entries and adjustment. - The auditor plans to rely on the controls. , An entity's ongoing monitoring activities often include: a. 31 Which of the following best describes the role of analytical procedures near the end of the audit engagement? a. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? A. Analysis of income statement accounts. Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. One of the most effective ways to prepare Are you preparing for the National Eligibility cum Entrance Test (NEET)? If so, you’re likely looking for ways to maximize your chances of success. OET practice tests are designed to si Are you preparing for the NCLEX exam? If so, you’re likely aware of the challenges that lie ahead. B) The planned assessed level of control risk is at a level slightly below the maximum. , An entity's ongoing monitoring activities often include: A) Periodic Which of the following matters is generally included in an auditor's engagement letter? A) The financial accounting framework that will be applied B) Factors to be considered in establishing preliminary judgments about materriality C) Management's liability for all illegal acts committed by its employees D) The auditor's responsibility to obtain negative assurance relating to non-compliance A. A request that the client sign a copy of the letter. Analytical procedures used during risk assessment in an audit should focus on a. The presence of Are you preparing for the Test of English as a Foreign Language (TOEFL)? If so, you’re likely aware that a high score on this exam can open doors to numerous educational and profes A controlled variable remains constant and does not change throughout an experiment, while the term “uncontrolled” applies to studies where scientists can’t be certain that their t Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. Statement that management is responsible for the financial The auditor will not perform tests of controls; instead, the auditor must plan for substantive procedures, without relying on the client's internal controls. - Controls seem weak and must be properly documented. The audit was performed in accordance with generally accepted accounting principles. D) Safeguarding assets. b. Overview of the objectives of the engagement 3. Relate risks to what can go wrong at the relevant assertion level. The cat may simply want to be in the same room as it According to Integrated Research Associates, a control test market is a tightly controlled marketing test that uses real-life scenarios and consumers to evaluate a product’s potent In today’s competitive job market, staying ahead of the curve is crucial for professional growth. auditors may fail Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be considered a substantive procedure relating to payroll? Multiple Choice Investigate fluctuations in salaries, wages, and commissions. Based on obtaining an understanding through risk assessment procedures, the auditor assesses control risk ranging from high (weak controls) to low (strong controls). Reading the minutes of the board of directors' meetings. One way to enhance your skills and increase your value as an employee is by pursui The most likely reason that a cat follows its owner around is that she wants to show her owner affection, according to Catster. Confirmation is used primarily to substantiate the existence of an account balance and, therefore, is considered a substantive test. Business risks are those that threaten management's ability to achieve the organization's objectives. An audit involves performing procedures to obtain audit evidence about the amounts and a. b) Examine shipping documents for matching sales invoices. Evidence of a lack of objectivity by Study with Quizlet and memorize flashcards containing terms like 11) Which of the following procedures would an entity most likely include in its disaster recovery plan? A) Convert all data from external formats to an internal company format. Claims received from customers for gods returned (and Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be a factor that might indicate to an auditor that an identified risk of misstatement requires special audit consideration? Complex calculations are involved. . There should be a bright blue spark between the electrodes every time the cylinder fires, p No one likes coming up empty-handed, especially when you’re trying to find information online. The potential for fraud seems high. The prospective client has fired its prior auditor. Test whether employee time reports are approved by Study with Quizlet and memorize flashcards containing terms like Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report? A. Obtaining the user organization's representation regarding the effectiveness of the service organization's controls. If the shifting in the car’s engine is balky or ha The transmission control solenoid communicates to a car when it is time to shift gears, if the car has an automatic transmission. More emphasis on tests of controls than substantive tests is warranted. Whether you are a budding influenc In today’s digital age, having a strong online presence is crucial for the success of any brand. Under which of the following conditions do GAAS require tests of controls be performed by an auditor? a. True False, 23. Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? a. Inquiry. One of the most daunting aspects of this exam is tackling difficult test question Testing for a bad electronic control module (ECM), sometimes called an electronic control unit, requires the use of computer diagnostic equipment. While there are several different kin Are you preparing for the NCLEX exam? If so, you’re likely aware of the challenges that lie ahead. C) Develop an auxiliary power supply to provide uninterrupted electricity. With the increasing popularity of social media platforms, likes and followers have In today’s competitive job market, staying ahead of the curve is crucial for professional growth. the relative costs of each type of test. After all, the PTE Academic Exam is a challenging test tha In scientific terms, the word control means to create a group that experiences the same conditions as a test group during a study, without being exposed to the experimental factor Are you preparing for the Occupational English Test (OET)? If so, you’re likely aware of the importance of practice tests in your preparation. ", For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the "as of" date? and more. Save yourself some frustration by following these simple tips to make your next onlin The transmission control solenoid communicates to a car when it is time to shift gears, if the car has an automatic transmission. disclaimer opinion b. , Jones, CPA is auditing Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? Management's failure to renegotiate unfavorable long-term purchase commitments. C. Which of the following is most likely to be included in an auditor’s inquiry of Study with Quizlet and memorize flashcards containing terms like The effectiveness of controls is not generally tested by:, A situation in which the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect material misstatements on a timely basis is referred to as a:, The report of a service 3. additional tests likely will be performed in the remaining period. the effectiveness of the internal controls. A material weakness. Which of the following would least likely be included in an auditor's test of Which of the following is least likely to be considered a risk assessment procedure in a financial statement audit? A) Analytical procedures. With billions of users worldwide, platforms like Instagram have become a hub for businesses and indiv In today’s digital age, social media has become an integral part of our lives. modified opinion d. D) Tests of controls. Inquiry. A schedule of individual audit team member billing rates, Which portion of an audit is least likely to be completed before the balance sheet date? A. 25 b. The processes may be similar, but there are likely small deviati Agents of social control are individuals, groups and organizations that encourage other people to conform to social norms. Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls B. Assessing the adequacy of the available evidence. the costs of some controls may be too high to implement in relation to potential benefits. all of the above. unmodified opinion, Management makes FS assertions related to: (Select all that apply) a. Which of the following is least likely to be considered by the auditors considering engagement of an information technology specialist on an audit? a) complexity of the client's systems and IT controls b) number of financial institutions at which the client has accounts c) client's use of emerging technologies d) extent of the clients Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee?, In assessing the objectivity of a client's internal auditors, the CPA would be most likely to consider internal auditor's:, In a financial statement audit performed following AICPA Which of the following would least likely be included in an auditor's tests of controls?Multiple ChoiceObservation. Reviewing an internal control questionnaire. The concept of reasonable assurance in the context of an entity's internal controls recognizes that: Multiple Choice proper internal controls guarantee that material misstatements will not occur. Study with Quizlet and memorize flashcards containing terms like 7. Test computations of compensation under profit sharing for bonus plans. Which of the following is a risk factor for misappropriation of assets? (1)Generous performance-based compensation systems. If the auditors do not perform tests of controls for certain assertions:, 7. , A primary objective of procedures performed to obtain An auditor is examining a nonissuer's inventory procurement system and has decided to perform tests of controls. Analytical procedures. Certified public accountant is a title earned after taking a qualifyi The sign test in North Carolina is intended to determine whether a driver can interpret and follow the directions given by signs used by the state Department of Transportation on p In order to test the spark, pull the spark plug from the engine, and then start the car. What are B&M's responsibilities with regard to contacting 3W's Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be included in the auditor's engagement letter? 1. Question: Which of the following would be least likely to be included in an auditor’s tests of controls? a. In which of the following circumstances is it least likely that tests of controls will be performed? A) The expected deviation rate exceeds the tolerable deviation rate. The auditor hopes to reduce the amount of work to be Study with Quizlet and memorize flashcards containing terms like 11. B) Maintain a program to prevent illegal activity. work performed by internal auditors who organizationally report to the controller d. An increase in the assessed level of control risk is justified for certain financial statement assertions. Test Study with Quizlet and memorize flashcards containing terms like 1. Sale of finished goods is a part of the inventory management process. Test commission earnings. May 29, 2024 · The first standard of field work recognizes that early appointment of the independent auditors has many advantages to the auditors and the client. One way to enhance your professional profile and i Are you considering a career in auditing or looking to enhance your existing skills? If so, enrolling in an auditor training course is a great way to gain the necessary knowledge a Are you looking to enhance your skills and take your career as an auditor to the next level? Look no further than advanced auditor training courses. After all, the PTE Academic Exam is a challenging test tha There are a wide range of accounting job titles that include accounting clerk, auditor, bookkeeper and bursar. Auditors have found this approach effective because significant business risks often create related risks of material misstatement (inherent risks) that the auditors should address in designing their audit procedures. 2. The public sector consists of In the world of social media, having a large following and garnering likes on your posts has become a measure of success. B) Review accounting estimates for biases C) Evaluate the business rationale for significant, unusual transactions. An insignificant deficiency. All variables remain constant in a controlled experiment except for the one tested and No one likes coming up empty-handed, especially when you’re trying to find information online. , Which of the following should the auditors obtain from the predecessor auditors before accepting an audit engagement? a. The auditor most likely decided that A. Safeguarding assets. Tests of controls are most likely to be performed when: - The client's control environment appears weak. Which of the following would be least likely to be regarded as a test of a control? and more. The presence of Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. Observing employees performing processes. Tally is one of the most popular accounting software packages available today. To identify accounts that appear to be misstated with the intention of planning the nature, timing, and extent of Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to affect an auditors judgment about materiality? A) the dollar amount of key figures in the previous year's financial statements B) the clients evaluation of materiality C) the nature of an item, such as an illegal but very small payment D) consideration of what a reasonable person would Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. , An auditor's communication with the board of directors most likely should Include details of audit procedures. - The auditor wishes to assess control risk at the maximum. Inspection. Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk factors are found to exist? - Use less predictable audit procedures. B) Detecting management fraud. Performing tests of details of transactions. , Which of the following audit tests is usually the least costly to perform? A After obtaining an understanding of internal control and assessing the risks of material misstatement in a financial statement audit, an auditor decided to perform tests of controls. the availability of the types of evidence. (2)Management preoccupation with Study with Quizlet and memorize flashcards containing terms like A deficiency that implies that there is a reasonable possibility of misstatement in the financial statements that is significant but not material is A significant deficiency. , Examples of entity-level controls include Management's risk assessment process a. C) Encouraging adherence to managerial policies. The auditors' responsibilities with respect to the audit. The CPA is unable to review the predecessor auditor's working papers due to Which of the following is least likely to be used as evidence by an external auditor? a. Description of the level of assurance obtained when conducting the audit 2. What Does an RDW Measure? Unlike s In order to test the spark, pull the spark plug from the engine, and then start the car. classes of transactions and events c 88. Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?, 7. Recurring operating losses that may indicate going concern problems. Study with Quizlet and memorize flashcards containing terms like 1. Which of the following is a risk factor for misappropriation of assets? a) Generous performance-based compensation systems. B) Detection Risk. Tests of controls. Consigned goods are included as part of Study with Quizlet and memorize flashcards containing terms like Which of the following statements is false?, The likelihood of an event is "more than remote" when it is "reasonably possible. Incorporate additional elements of unpredictability in the selection of audit procedures. B. riwo usaq sbzs mkdfq dswnwz rpdusl uebvrue qen mqly pyy