Question Details

ACC 403 QUIZ 5
Question 1
 	The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

			
•	Question 2 
When assessing whether the financial statements are auditable, the auditor must consider:

			
•	Question 3 
Which of the following deal with ongoing or periodic assessment of the quality of internal control by management?

			
•	Question 4 
Audit evidence regarding the separation of duties is normally best obtained by:

			
•	Question 5 
Management must disclose material weaknesses in internal control in its audit report:

			
•	Question 6 
Proper segregation of functional responsibilities calls for separation of:

			
•	Question 7 
When considering internal controls, an important point to consider is that:

			
•	Question 8 
Which of the following deficiency exists if a necessary control is missing or not properly formulated?

			
•	Question 9 
Internal controls normally include procedures designed to provide reasonable assurance that:

			
•	Question 10 
	In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:

			
•	Question 11 
An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:

			
•	Question 12 
Narratives, flowcharts, and internal control questionnaires are three common methods of:

			
•	Question 13 
Which of the following is not one of the three primary objectives of effective internal control?

			
•	Question 14 
The auditors primary purpose in auditing the client's system of internal control over financial reporting is:

			
•	Question 15 
Reasonable assurance allows for:

			
•	Question 16 
Misappropriation of assets is normally perpetrated by:
.
			
•	Question 17 
Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:

			
•	Question 18 
Two of the most useful warning signals that can indicate that revenue fraud is occurring are:		

			
•	Question 19 
Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

			
•	Question 20 
When assessing the risk for fraud, the auditor must be cognizant of the fact that:

			
•	Question 21 
Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

			
•	Question 22 
Which of the following is least likely to uncover fraud?

			
•	Question 23 
Who is most likely to perpetrate fraudulent financial reporting?

			
•	Question 24 
In the fraud triangle, fraudulent financial reporting and misappropriation of assets:

			
•	Question 25 
Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

			
•	Question 26 
Companies may intentionally understate earnings when income is high to create ________ that may be used in future years to increase earnings.

			
•	Question 27 
Most cases of fraudulent reporting involve:

			
•	Question 28 
Which of the following questions is the auditor not required to ask company management when assessing fraud risk?

			
•	Question 29 
Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?

			
•	Question 30 
Which of the following best defines fraud in a financial statement auditing context?

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