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Auditing review questions 19-23

19. Choices about audit evidence are influenced by all of the following except:
a. the auditor's understanding of the business and industry.
b. decisions about inherent risk and control risk.
c. comparisons of the auditor's expectations of the financial statements with the client's books and records.
d. decisions about immaterial risk factors.
e. decisions about assertions that are material to the financial statements.

20. Accounting records generally include:
a. contracts.
b. minutes of meetings.
c. internal control manuals.
d. confirmations from third parties.
e. Analysts' reports

21. When planning the audit, the auditor must make the following important decisions except the:
a. assignment of staff to perform audit tests.
b. nature of tests to be performed.
c. characteristics of tests to be performed.
d. extent of tests to be performed.
e. timing of tests to be performed.

22. The five management assertions outlined in generally accepted auditing standards include all of the following except:
a. rights and obligations.
b. materiality.
c. existence and occurrence.
d. presentation and disclosure.
e. valuation or allocation.

23.

Auditor changes result from a variety of factors except:
a. mergers between CPA firms.
b. mergers between corporations with different independent auditors.
c. satisfaction with a firm.
d. a desire to reduce the audit fee.
e. the need for expanded professional services.

Solution Preview

19. Choices about audit evidence are influenced by all of the following except:
a. the auditor's understanding of the business and industry.
b. decisions about inherent risk and control risk.
c. comparisons of the auditor's expectations of the financial statements with the client's books and records.
d. decisions about immaterial risk factors.
e. decisions about assertions that are material to the financial statements.

Immaterial risk factors would not influence the evidence you ...

Solution Summary

A sentence explains the choice recommended.

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