ACCT 303 Week 8 Final exam

1. (TCO 4) In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if

2. (TCO 4) "Absence of reasonable care that can be expected of a person is a set of circumstances" defines

3. (TCO 4) While performing services for their clients, professionals have a duty to provide a level of care that is

4. (TCO 4) The objective of the ordinary audit of financial statements is the expression of an opinion on

5. (TCO 4) The auditor's best defense when material misstatements are not uncovered is to have conducted the audit

6. (TCO 3) Which of the following isnotone of the reasons that auditors provide onlyreasonableassurance on the financial statements?

7. (TCO 3) In the fraud triangle, fraudulent financial reporting and misappropriation of assets

8. (TCO 3) After fraud risks are identified and documented, the auditor should evaluate factors that _____ fraud risk, before developing an appropriate response to the risk of fraud

9. (TCO 3) Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?

1. (TCO 4) If a CPA firm is being sued for common law fraud by a third party based on materially false financial statements, which of the following is the best defense the accountants could assert?

2. (TCO 4) "Absence of reasonable care that can be expected of a person is a set of circumstances" defines

3. (TCO 4) A third-party beneficiary is one that

4. (TCO 4) In the auditing environment, failure to meet auditing standards is often

5. (TCO 4) The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the

6. (TCO 3) The element that distinguishes an error from fraud is

7. (TCO 3) Which of the following is not one of the factors of the fraud triangle?

8. (TCO 3) After fraud risks are identified and documented, the auditor should evaluate factors that _____ fraud risk, before developing an appropriate response to the risk of fraud.

9. (TCO 3) Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?

10. (TCO 3) Which of the following characteristics is most likely to heighten an auditor's concern about the risk of material misstatements, due to fraud in an entity's financial statements?