Help me in my homework,I need minimum 95% and I have only one attempt where I can score ,once I submit the answers can't change choose wisely answers

Question 1 of 45 Which of the following statements are false? (There are multiple correct answers) It is true that segregation of duties is considered a part of the monitoring component of the COSO framework for internal control structure. It is true that the auditor needs to obtain absolute assurance that the financial statements are free from material misstatement. It is true that preventive controls are designed to provide reasonable assurance that the correct program is used for processing, all transactions are processed, and the transactions update appropriate files. It is true that the Clarity Project is an initiative of the AICPA to converge its auditing standards with those of the PCAOB. It true that auditors make materiality assessments to help in planning the audit evidence to obtain and in evaluating the audit evidence that was obtained. Question 2 of 45 If an audit team discovers that fraud risk factors are present on an audit engagement, it should _______________________. Reduce the amount of evidence required and resort to management inquiry. Report it findings to the Securities and Exchange Commission. Turn the audit over to forensic accountants. Modify procedures to actively search for the existence of fraud. Retract from the client and inform regulatory bodies. Question 3 of 45 Before releasing the audit report, the auditor would most likely ___________________. perform an analytical review check on a schedule of partner rotation issue a management letter do all of these activities estimate client fee for subsequent services to be performed Question 4 of 45 _________________ are considered to be transaction controls. Controls to monitor other controls. None of these are considered to be transaction controls. Centralized processing controls. Policies that address significant business control practices. Physical controls to safeguard assets. Question 5 of 45 An example of a walkthrough would be when _______________________. All of these are examples of walkthroughs. The controller reviews the bank reconciliation prepared by the accountant and its resulting journal entries. The controller takes a sample of recorded writeoffs to ensure they have been properly approved. The auditor traces three purchasing transactions from the purchase order to the financial statement for observation and understanding. The auditor walks the production line to find inefficiencies in the inventory process and reports them to management. Question 6 of 45 Which of the following statements are true? (There are multiple correct answers) It is true that the PCAOB is a public board, appointed by Congress, to provide oversight of the firms that audit public companies registered with the SEC. It is true that the AICPA's fundamental principles and guidance for auditing standards can be divided into four sections: purpose of the audit, responsibility of the auditor, performance of the audit, and reporting of the results. It is true that when the risk of material misstatement is increased, the auditor increases the extent of audit procedures and requires less evidence. It is true that auditing exists because users need unbiased information on which to assess management performance and make economic decisions. It is true that all audit procedures must be completed before year end. Question 7 of 45 Which of the following statements is true? Auditors and management should agree on what is considered material. The use of prenumbered sales invoices is the primary control procedure to satisfy the objective of authorization. Auditors need to choose materiality amounts carefully because once a materiality judgment has been made, it cannot be revised. The revenue cycle involves the procedures in generating a sales order, shipping the products, recording the transaction and collecting the receivable. The revenue cycle considered by auditors includes the sales process but not collections. Question 8 of 45 Select all of the following statements that are true. (There are multiple correct answers and you must select all that are true) Audits of Level 3 assets are the most straightforward as they involve an observable, active market. Violations of GAAP resulting in a qualified opinion affect the standard audit report through adding an explanatory paragraph before the opinion paragraph, and modifying the opinion paragraph to read "except for." Qualified opinions can only be issued by auditors when there are violations of GAAP or scope limitations. The volume of transactions affected is not one of the critical criteria in assessing identified internal control deficiencies. When assessing fair value of Level 1 assets, auditors will use information on the sale of identical items in active or inactive markets as a source of audit evidence. Question 9 of 45 Which of the following statements is false? It is necessary for the auditor to understand internal controls for integrated audits but not for financial statement only audits. Auditors can gain an understanding of internal controls by reviewing the client's documentation. If the auditor believes internal controls are ineffective, he should extend substantive testing. Incorrect aging of accounts receivable is a fraud scheme. Lapping can occur when duties are inadequately segregated. Question 10 of 45 Which one of the following statements is false? The primary importance of the audit program is its guidance of the overall conduct of the audit. An example of physical observation is the auditor's testing of inventory by counting it to substantiate the existence assertion. Audit documentation serves as support for the financial statements. In a reasonableness test, the auditor develops an expected value of an account by using data wholly or partly independent of the client's accounting information system. Some audit procedures may be performed prior to the end of the year under audit. Question 11 of 45 Select all of the following statements that are true. (There are multiple answers). It is true that the need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. It is true that an individual does not need to agree to uphold the code of professional conduct in order to become licensed as a CPA. It is true that internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting, compliance with laws and regulations and ineffective and inefficient operations. It is true that the term, financial statement audit, is used to describe a systematic process of objectively obtaining evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. It is true that the auditor is not responsible for the presentation of financial statements; therefore, the auditor has no responsibility for fraud in the financial statements. Question 12 of 45 All of the following statements are false, except: A detection risk of 90% would suggest that an auditor must perform extensive substantive audit testing. The auditor's determination that day's sales in accounts receivable increased from 44 days to 100 days would usually be found through the use of ratio analysis. Audit procedures have to be announced or be completed at predictable times. An attitude of professional skepticism by the auditor is not needed when internal controls over revenue have been tested and found to be effective. Lapping of accounts receivable is least likely to occur when there is an inadequate segregation of duties. Question 13 of 45 All of the following statements are true, except: Commissions and referral fees are allowed to audit firms as long as the audit client is informed of the fees. Auditors need to consider fraud arising from misappropriation of assets and fraudulent financial reporting. Contingent fees are prohibited for tax professionals when preparing tax returns for clients An example of fraudulent financial reporting is the CFO intentionally overstating sales to boost profits Managers must use professional judgment to determine whether identified control deficiencies rise to the level of a significant deficiency or material weakness. Question 14 of 45 All of the following statements are false, except: Management of companies should have the ability to hire and fire the external auditor. The SEC has authority to establish GAAP for all business enterprises. The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws. The audit committee is a subcommittee of the board of directors comprised of independent outside directors. Corporate governance is a process by which the owners, but not the creditors, exert control and require accountability for the resources entrusted to the organization. Question 15 of 45 Which of the following statements are false? (There are multiple correct answers and you should select all that are correct) It is true that the audit report delineates the responsibility of client management and that of the audit firm. It is true that determining materiality is based solely on quantitative factors. It is true that a client that has a departure from generally accepted accounting principles that is immaterial will receive a qualified or adverse opinion. It is true that the auditor considers materiality only at the overall financial statement level. It is true that the auditor should only provide an opinion on the financial statements if the opinion indicates that the financial statements are fairly stated in all material respects. Question 16 of 45 ______________ is the audit report referred to when the auditor has no reservations about management's financial statements. A peer review An unqualified report An adverse report A qualified report An integrated report Question 17 of 45 In order for an audit firm to perform financial statement audits for public companies, it must _____________________. Register with the Public Company Accounting Oversight Board. Register with the Internal Revenue Service. Register with the U.S. General Accounting Office. Register with the American Institute of Certified Public Accountants. Register with the Institute of Internal Auditors. Question 18 of 45 ____________ is an example of alternative procedures for the confirmation of accounts receivable. None of these answers are correct. Review of subsequent collections on account by the client. Tracing source documents to recorded amounts. Providing an estimate of the allowance for doubtful accounts to be recorded by the client. Inquiry of management. Question 19 of 45 The _________________ phase of the audit opinion formulation process is most commonly thought of as auditing by the general public. None of these answers are correct. obtaining evidence about internal controls obtaining substantive evidence about accounts performing risk assessment making reporting decisions Question 20 of 45 Which of the following statements is false? A date at which audit evidence is collected earlier than the balance sheet date is referred to as an interim date. While inspecting documents, the reliability depends on the nature and source of the documentation. Underlying accounting data does not include minutes of meetings. Vouching of transactions deals with testing forward. The written record that forms the basis for the auditor's conclusions is referred to as audit documentation. Question 21 of 45 __________________ should sign the management representation letter. The chief financial officer and the treasurer. The controller and the auditor. The members of the audit committee and board of directors. None of these answers are correct. The chief executive officer and the chief financial officer. Question 22 of 45 Which of the following is the first step in management's evaluation of internal control over financial reporting? Identify financial reporting risks. Identify controls that mitigate financial reporting risks. Evaluate control deficiencies. Select and perform testing procedures to evaluate the operating effectiveness. Document operating effectiveness. Question 23 of 45 _______________ would be the least reliable type of evidence? Letters of communication from the Securities Exchange Commission. Evidence from an easily overridden information system. Physical examination of perpetual inventory. Confirmations returned by bank directly to the auditor. None of these answers are correct. Question 24 of 45 Select all of the following statements that are true. (There are multiple answers) It is true that walkthroughs and inquiries are often used to obtain an understanding of internal controls. It is true that audit evidence consists of both information that corroborates management's assertions and information that contradicts such assertions. It is true that the audit report is modified to five paragraphs as a result of another audit firm performing part of the financial statement audit. It is true that complex audit judgments and decisions often involve accounts that require subjective estimates by management. It is true that auditors are permitted to perform for a contingent fee an audit of the financial statements if the audit committee approves the agreement in advance of the services being provided. Question 25 of 45 According to the Financial Reporting Council (FRC), when is the culture of an audit firm likely to provide a positive contribution to audit quality? When the leadership of the audit firm ensures robust systems for client acceptance and continuation based on the likelihood of increased audit fees. When the leadership of the audit firm ensures financial considerations drive actions. When the leadership of the audit firm creates an environment where achieving efficiency is valued, invested in and rewarded. When the audit firm has multinational experience in conducting audits. When the leadership of the audit firm ensures partners and other staff have sufficient time and resources to deal with difficult issues as they arise. Question 26 of 45 Select all of the following statements that are true. (There are multiple correct answers and you should select all that are correct) It is true that an auditor needs to assess disclosures about what lines of business the company may discontinue. When financial statements contain a material, unjustified departure from GAAP, a qualification should not be contained in the audit report. There are systematic processes that the auditor can use in making most of the complex judgments in the financial statements. It is true that existing professional guidance notes that auditors must make materiality assessments for purposes of (1) audit planning and (2) evidence evaluation after audit procedures are completed. When the financial statements contain a material departure from GAAP that the auditor believes is justified, the justification should be included in a paragraph added before the opinion paragraph. Question 27 of 45 Which of the following statements is false? During the audit, auditors should have heightened skepticism regarding periodend adjusting journal entries that relate to accounts with significant estimates. It is true that financial statement estimates are based on both subjective and objective factors. During the conduct of an audit, if a lawyer refuses to furnish the requested information about the client's contingencies to the auditor, the auditor should issue an unqualified audit opinion. It is true that bondholders are one of the users of financial statements. It is true that CPA certificates for auditors are issued by state boards of accountancy. Question 28 of 45 Which of the following statements is false? It is true that auditing exists because users need unbiased information on which to assess management performance and make economic decisions. It is true that users rely on the auditors' independent assessment of financial statement presentation because few users have direct knowledge of the company's operations. It is correct that, according to professional audit standards, the audit team should assemble early in the planning stages of an audit to conduct a fraud "brainstorming" meeting in order to determine the types of fraud that may occur with the client. It is true that the consideration of fraud in financial statement audits is a relatively new concept derived originally from the SarbanesOxley Act. It is true that if an auditor discovers evidence of fraud, the planned audit procedures should be adjusted accordingly. Question 29 of 45 Please select all of the following statements that are false. (There are multiple answers and you should select all that are false) It is true that the inventory account does not require any subjective estimates by management. It is true that the experience level of the audit team is not delineated in the audit report. It is true that complex audit judgments and decisions often involve accounts that require subjective estimates by management. In the FASB hierarchy of inputs to consider for assessing fair value, quoted prices on identical items is associated with Level 1. The scope paragraph of an unqualified opinion primarily gives information relating to statements and dates under audit. Question 30 of 45 Select all of the following statements that are true. (There are multiple correct answers and you must select all statements that are true) Internal auditors perform operational audits. External auditors are typically responsible for performing information systems and security audits. It is true that the most difficult decisions about which opinion to issue are generally centered around decisions based on the materiality level and pervasiveness of GAAP violations, the significance of scope limitations, and the likelihood of the entity being a going concern. The primary client of the internal audit department is management and the audit committee of the Board of Directors. It is true that the auditor is only concerned about the aggregate internal control deficiencies when determining the appropriate opinion on internal control over financial reporting (ICFR). Question 31 of 45 Which of the following statements is false? It is true that, regarding loss contingencies, the client's legal counsel should be instructed by the client to respond directly to the auditors. It is true that the total likely misstatements found during the audit are equal to the sum of known and projected misstatements. it is true that independence is often referred to as the cornerstone of the auditing profession. It is true that if the auditor has no reservations about management's financial statements then the auditor will issue a qualified opinion. During an audit, the auditor compares the total likely misstatements to each significant segment of the financial statements, such as total current assets, total noncurrent assets, total current liabilities, total noncurrent liabilities, owners' equity, and pretax income, to determine if they are, in aggregate, material to the financial statements. Question 32 of 45 Which of the following statements are false? (There are multiple correct answers) It is true that auditors and management should agree on what is considered material. According to auditing standards, it is true that accounts receivable confirmations are required to be used if the client's accounts receivable balances are immaterial. It is true that "clearly trivial" and "not material" are terms that can be used interchangeably. The accounts receivable aging schedule is utilized by the auditor for analytical purposes in substantiating the completeness of the allowance for bad debt estimate. It is true that the auditor traces recorded sales to invoices, sales orders and shipping documents in order to substantiate the occurrence assertion. Question 33 of 45 ______________ is not an indicator of a potential goingconcern problem? An Altman Zscore above 3.0 Significant changes in competition Negative trends in profitability External matters increasing regulatory requirements All of these are indicators of a potential goingconcern problem. Question 34 of 45 The auditor's detection of __________________ is a key indicator of fraud in the revenue cycle. Altered shipping documents and invoices. Recurring entries in the sales journal. Customer collections that are over 90 days past due. Credit entries in customer accounts receivable for authorized writeoffs. None of these answers are correct. Question 35 of 45 The _____________ is recognized for providing guidance on a framework for internal control. SEC IAASB AICPA PCAOB COSO Question 36 of 45 Which of the following statements are false? (There are multiple answers) The FASB requires that Goodwill should be tested for impairment at least on a quarterly basis. The Percentage Approach method focuses on the materiality of current year misstatements and the reversing effect of prioryear misstatements on the income statement. A method used by companies to fraudulently inflate revenues includes the use of "side letters" giving the customer an irrevocable right to return the product. It is true that an example of fraudulent financial reporting is the CFO intentionally overstating sales to boost profits. Step 2 of the goodwill impairment test compares the fair value of goodwill with the carrying value of goodwill. Question 37 of 45 _____________ is an inherent limitation of internal controls? An ethical conflict. Lack of auditor independence. Separation of duties. Collusion. Employee peer review. Question 38 of 45 The most common criteria against which the auditor measures the fairness of financial statement presentation for a U.S.based company is: Government accounting principles Generally accepted accounting standards Auditing standards SarbanesOxley compliance Generally accepted accounting principles Question 39 of 45 If _________________________, this would indicate that fraud is pervasive throughout the company under audit. The company's management estimates bad debts using an aged accounts receivables ledger rather than as a percent of sales. All of these would indicate that fraud is pervasive. The company's management negotiates deals with vendors in such a manner as to pay lower prices. The company's management takes an overly aggressive approach to revenue recognition. The company's management drives luxury vehicles and takes vacations to exotic places. Question 40 of 45 Which of the following statements is false? Touring a company's plant offers much insight into potential audit issues. A company that ships a large quantity of its products from its manufacturing plant to a warehouse that it leases until the customer is ready for the product should record the delivery as revenue. When business risk is low, the auditor does not have a high concern about the ability of the organization to operate efficiently. The purpose of the auditor's consideration of the effectiveness of internal controls is to determine the nature, extent and timing of substantive testing. An appropriate mix of evidence for a low risk client could include 20% tests of details, 40% analytics, and 40% tests of controls; an appropriate mix of evidence for a high risk client could include 60% tests of details, 20% analytics, and 20% tests of controls. Question 41 of 45 All of the following statements are false, except: Not material and clearly trivial are terms that can be used interchangeably. Auditors and management should agree on what is considered material. If the client company has a consistent pattern of earnings growth, the auditor's concern for fraud in revenue recognition would be eliminated. When business risk is low, the auditor does not have a high concern about the ability of the organization to operate efficiently. Confirmations of bank accounts may help the auditor to determine if material amounts of accounts receivable have been sold to the bank on a recourse basis. Question 42 of 45 All of the following are true, except: The auditor uses professional judgment to determine which audit procedures to perform. An example of a test for completeness in the revenue cycle includes the sampling of shipping documents and tracing them to the sales journal and general ledger. Tracing is a process that helps establish that recorded transactions are valid. The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues. Valid evidence obtained in an audit for testing the cutoff of gross sales includes receiving reports for returned merchandise. Question 43 of 45 The auditor would perform an audit procedure to ________________ in order to determine whether any accounts receivables are pledged or assigned to others. Review loan agreements and board of directors' meeting minutes. Derive an independent estimate of the allowance and compare it to pledged assets. Test a sample of transactions to the general ledger. None of these answers are correct. Examine subsequent collections. Question 44 of 45 The public expects which of the following from a firm's external auditors? Take responsibility for the discovery of fraud. Understand and enforce principles that best portray the spirit of FASB concepts. Be neutral to preparers and users of financial information. The public expects all of these from a firm's external auditors. Recognize that the investing public is the primary user of audit services. Question 45 of 45 Which of the following statements is false? Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work. The client's verbal evidence is more reliable than evidence from independent outside sources. The reliability of audit evidence is a measure of the quality of the underlying evidence and is influenced by risk, potential management bias associated with the evidence, and the quality of the internal control system underlying the preparation of the evidence. Analytical procedures are a type of substantive evidence. The relevance of audit evidence depends on the audit assertion being tested