Question Details

When an auditor believes that analytical procedures 



1. (Public)
	Which of the following types of procedures will be performed in an audit of internal control over financial reporting?
	
		Procedures to obtain an understanding of internal control		Ratio analysis
	a.	Yes		Yes
	b.	No		No
	c.	Yes		No
	d.	No		Yes
	
2.	Tests of details of balances focus on:
	a.	beginning of the year balances.
	b.	end of the year balances.
	c.	transaction details for the period under audit.
	d.	accounting cycles.
	
3.	Auditors who test manual controls that rely on IT-generated reports must consider:
	a.	the benefits of relying on IT-generated reports.
	b.	separation of duties related to the IT-generated reports.
	c.	the controls related to the accuracy of the information in the report.
	d.	whether the manual controls are approved by the audit committee..
	
4.
	When an auditor believes that analytical procedures indicate a reasonable possibility of misstatement, the auditor usually would:
	
		Perform additional tests of controls		Decide to modify tests of details of balances
	a.	Yes		Yes
	b.	No		No
	c.	Yes		No
	d.	No		Yes
	
5.
	If the results of the tests of controls, substantive tests of transactions, and analytical procedures are not consistent with the predictions, tests of details of balances will be:
	a.	eliminated.
	b.	increased.
	c.	unaffected.
	d.	changed.
	
	



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