1.Which of the following representations is implicit in the auditor's standard unqualified report?

Question options:

A)

that the financial statements have applied accounting principles on a consistent basis

B)

that all material disclosures have been made

C)

that the financial statements conform to GAAP

D)

the balance sheet is prepared according to cash basis

2.The audit report is dated

Question options:

A)

on the date the financial statements are issued

B)

on the date of the financial statements

C)

on the date the report is issued

D)

on the date fieldwork was completed

3.If the auditor obtains satisfaction with respect to the accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable, the auditor's report should be unmodified and could be expected to

Question options:

A)

Refer to a note that discloses the alternative procedures.

B)

Not mention the alternative procedures.

C)

Disclose that alternative procedures were used because of a management-imposed scope limitation.

D)

Disclose in the opinion paragraph that confirmation of accounts receivable was impracticable.

4.When the financial statements contain an immaterial inconsistency as to the application of accounting principles, the auditor will issue a(n)

Question options:

A)

adverse opinion

B)

disclaimer of opinion

C)

qualified opinion

D)

standard, unqualified opinion

5.If the auditor fails to detect a material misstatement in the financial statements because he's failed to properly design a sampling plan, he has succumbed to

Question options:

A)

sampling risk

B)

nonsampling risk

C)

design risk

D)

systematic risk

6.The key assumption applicable to statistical audit sampling is that

Question options:

A)

it eliminates the need for audit judgment

B)

the auditor may pinpoint a population value without looking at all of the items in the population

C)

the auditor may eliminate risk from reviewing only a portion of the items in the population

D)

reasonably close predications may be made about a population based on a sample

7.Which of the following statements is true concerning statistical sampling in tests of controls?

Question options:

A)

The population size has little or no effect on determining sample size except for very small populations.

B)

As the population size doubles, the sample size also should double.

C)

The expected population deviation rate has little or no effect on determining sample size except for very small populations.

D)

For a given tolerable rate, a larger sample size should be selected as the expected population deviation rate decreases.

8.Which of the following is a sampling risk that is associated with the efficiency of an audit?

Question options:

A)

Risk of assessing control risk too high.

B)

Risk of incorrect acceptance.

C)

Detection risk.

D)

Inherent risk.

9.When another auditor is involved in examining a portion of the financial statements, and the primary auditor decides to make no reference to the other auditor in the audit report,

Question options:

A)

the auditor is issuing a shared opinion report

B)

the auditor is not responsible for the other auditor's work

C)

the auditor is accepting responsibility for the other auditor's work

D)

the auditor is not responsible for the other auditor's work

10.The auditor selects a sample of shipping documents to determine whether bills have been sent for the goods shipped. This test would satisfy the audit objective of

Question options:

A)

existence

B)

completeness

C)

presentation and disclosure

D)

valuation

11.The accuracy of information included in notes that accompany the audited financial statements of a company whose shares are traded on a stock exchange is the primary responsibility of the

Question options:

A)

Stock exchange officials.

B)

Securities and Exchange Commission.

C)

Independent auditor.

D)

Company's management.