Question Details

If no material differences are found using analytical procedures 


1.
	A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a:
	a.	test of controls.
	b.	substantive test.
	c.	test of attributes.
	d.	monetary-unit sampling test.
	
2.	Which of the following is not appropriate for purposes of testing the effectiveness of controls? 
	a.	Make inquiries of client personnel.
	b.	Evaluate prior experience with the client.
	c.	Observe control-related activities.
	d.	Reperform client procedures.
	
3.	Which of the following is not a direct result of performing analytical procedures?
	a.	Identify areas of potential misstatements.
	b.	Reduce detailed audit tests.
	c.	Understand the client- business.
	d.	Identify specific errors in the accounts.
	
4.	If no material differences are found using analytical procedures and the auditor concludes that misstatements are not likely to have occurred:
	a.	other tests may be reduced.
	b.	it will be necessary to increase the tests of balances.
	c.	it will not be necessary to perform tests of balances.
	d.	it will be necessary to increase the tests of transactions.
	
5.	The primary emphasis in most tests of details of balances is on the:
	a.	balance sheet accounts.
	b.	revenue accounts.
	c.	cash flow statement accounts.
	d.	expense accounts.



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