1.The general type of fraud that involves intentionally misstating items or omitting important facts from the financial statements is typically known as _______.

-fraudulent financial reporting

-writing checks to fictitious vendors

-using company cars for personal use

-theft of inventory by employees

2.The general type of fraud that involves some form of theft is typically known as _______.

-fictitious sales

-misappropriation of assets

-unrecorded liabilities

-improper asset valuation

3.An audit plan details the nature, extent, and timing of audit procedures to be performed. The extent of audit procedures is best defined as _______.

-what type of procedure will be used

-when the procedure will be performed

-how much testing will be done

-the reliability and relevance of evidence obtained in the audit

4.What are tests of controls?

-Audit procedures designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.

-Audit controls for developing an audit plan that details the nature, extent, and timing of audit procedures to be performed.

-Audit timelines of when audit activities occur for the audit of a client that uses a calendar year-end.

-Audit procedures designed for the determining the amount of time spent testing the clients internal controls and conducting detailed testing of transactions and account balances

5.The audit risk model is presented as _______.

-AR = f (IR + CR + DR)

-AR = f (IR + CR DR)

-AR = f (IR * CR * DR)

-AR = f (IR * CR) / DR