ACC 403 Week 6 Quiz Chapter 9

ACC 403 Week 6 Quiz Chapter 9

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  1. 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? 
  2. When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as: 
  3. To what extent do auditors typically rely on internal controls of their public company clients? 
  4. As the risk of material misstatement increases, detection risk should: 
  5. As the acceptable level of detection risk increases, an auditor may change the: 
  6. Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence. 
  7. Inherent risk is often high for an account such as: 
  8. When dealing with audit risk: 
  9. Auditors are ________ to document the known and likely misstatements in the financial statements under audit. 
  10. Amounts involving fraud are usually considered ________ important than unintentional errors of equal dollar amounts. 
  11. 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:
  12. 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: 
  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. Inherent risk and control risk: 
  15. If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2: 

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