ACC 403 Quiz 4

ACC 403 Quiz 4

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1.       Auditors are ________ to document the known and likely misstatements in the financial statements under audit.

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

3.       Inherent risk and control risk:

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

5.       Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.

6.       As the acceptable level of detection risk increases, an auditor may change the:

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

8.       Amounts involving fraud are usually considered ________ important than unintentional errors of equal dollar amounts.

9.       As the risk of material misstatement increases, detection risk should:

10.   If an auditor establishes a relatively high level for materiality, then the auditor will:

11.   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?

12.   When allocating performance materiality:

13.   ________ misstatements are those where the auditor can determine the amount of the misstatement in the account.

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

15.   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:

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