ACC 403 Quiz 3 Set 1

ACC  403 Quiz 3 Set 1

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1.       If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

2.       The assessment against a defendant of that portion of the damage caused by the defendant's negligence is called:

3.       In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

4.       Which of the following most accurately describes constructive fraud?

5.       Which of the following auditor's defenses usually means nonreliance on the financial statements by the user?

6.       The preferred defense in third party suits is:

7.       A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

8.       The expectation gap:

9.       In the auditing environment, failure to meet auditing standards is often:

10.   The principal issue to be resolved in cases involving alleged negligence is usually:

11.   Privity of contract exists between:

12.   The principal issue in cases involving alleged negligence is usually:

13.   Laws that have been passed by the U.S. Congress and other governmental units are:

14.   "Absence of reasonable care that can be expected of a person in a set of circumstances" defines:

15.   The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

16.   Which of the following is the auditor least likely to do when aware of an illegal act?

17.   The most important general ledger account included in and affecting several cycles is the:

18.   When an auditor believes that an illegal act may have occurred, the auditor should first:

19.   When an auditor knows that an illegal act has occurred, she must:

20.   Auditors accumulate evidence to:

21.   A questioning mindset:

22.   In testing for cutoff, the objective is to determine:

23.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

24.   The objective of an audit of the financial statements is an expression of an opinion on:

25.   An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:

26.   The posting and summarization audit objective is the auditor's counterpart to management's assertion of:

27.   Fraudulent financial reporting is most likely to be committed by whom?

28.   Which of the following is not one of the three categories of assertions?

29.   Which of the following would most likely be deemed a direct-effect illegal act?

30.   The concept of reasonable assurance indicates that the auditor is:

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