ACC 403 Week 6 Quiz 4

ACC 403 Week 6 Quiz 4

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1.       If planned detection risk is reduced, the amount of evidence the auditor accumulates will:

2.       Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:

3.       The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.

4.       An auditor who audits a business cycle that has low inherent risk should:

5.       Inherent risk and control risk:

6.       Auditors generally allocate the preliminary judgment about materiality to the:

7.       To what extent do auditors typically rely on internal controls of their public company clients?

8.       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:

9.       When taken together, the concepts of risk and materiality in auditing:

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

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

12.   The scope paragraph of the standard unqualified auditor's report states that "… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given?

13.   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:

14.   Auditing standards ________ that the basis used to determine the preliminary judgment about materiality be documented in the audit files.

15.   Auditors typically rely on internal controls of their private company clients:

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