ACC 403 Week 5 Midterm Part 2

ACC 403 Week 5 Midterm Part 2

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

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

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

4.       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:

5.       Which of the following most accurately describes fraud?

6.       The assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:

7.       Management assertions are:

8.       The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

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

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

11.   The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:

12.   If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

13.   The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is the definition of:

14.   Evidence is generally considered appropriate when:

15.   An example of a document the auditor receives from the client, but which was prepared by someone outside the client's organization, is a:

16.   The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:

17.   Appropriateness of evidence is a measure of the:

18.   Which of the following is not a characteristic of the reliability of evidence?

19.   ________ is the auditor's examination of the client's documents and records to substantiate that the information is included in the financial statements.

20.   Most auditors assess inherent risk as high for related parties and related-party transactions because:

21.   An auditor should examine minutes of the board of directors' meetings:

22.   A related party transaction may be indicated when another company:

23.   Initial audit planning involves four matters. Which of the following is not
one of these?

24.   The audit team gathers information about a new client's business and industry in order to obtain:

25.   Which of the following normally signs the engagement letter for an audit of a private company?

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