Management has several responsibilities that are important to the auditor. One of these is that management is responsible for

Question 1 options:

internal controls that prevent material misstatements due to fraud or error.

maintaining control of evidence (such as confirmations) until assessed by the auditor.

evaluating evidence against acceptable criteria.

providing reasonable assurance that the financial statements are fairly stated.

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Question 2(1 point)

Double dating a report is done when

Question 2 options:

the parent company and its subsidiaries have different year-ends.

the auditor finishes his work later than planned.

a material event occurs after the date of the auditor's report and affects the period that was audited.

a material event occurs after the date of the auditor's report and before the date the report is issued.

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Question 8(1 point) Before performing a review of an entity's financial statements, an accountant shouldQuestion 8 options:

complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions.

apply analytical procedures to provide limited assurance that no material modifications should be made to the financial statements.

obtain a sufficient level of knowledge of the accounting principles and practices of the industry in which the entity operates.

inquire whether management has omitted substantially all of the disclosures required by generally accepted accounting principles.

Save Question 9(1 point) Which of the following would be required in a compilation?Question 9 options:

an understanding between the client and the accountant for the services to be provided

a formal engagement letter signed by the client

management's acknowledgements for its responsibility with regards to the financial statements

a confirmation of the auditor's independence

Save Question 10(1 point) Which of the following items includes criteria for accepting a compilation engagement?Question 10 options:

evaluation of whether the financial statements are in accordance with ASPE

no reason to believe that the financial statements are false or misleading

completion of an independence threat analysis, ensuring that there are no threats to independence

completion of a client risk analysis with the conclusion that risks are low

Save Question 11(1 point) When is negative assurance used during a review engagement?Question 11 options:

when the standards applicable to a review engagement have been met

if a qualification is required during the review engagement

when the criteria associated with a review engagement have not been satisfied

when the practitioner is unable to set appropriate criteria for the review engagement

Save Question 12(1 point) Which of the following components of an engagement letter would apply to both a review engagement and a compilation engagement?Question 12 options:

negative assurance will be provided, so there is no assurance that fraud will be detected

no assurance will be provided since only mathematical accuracy will be verified

procedures used during the engagement will be limited to analytical review and inquiry

a statement that each page of the statements should be clearly marked "unaudited"

Save Question 13(1 point) As part of the conduct of a review engagement, which of the following procedures would be appropriate for assessing the ending value of inventory?Question 13 options:

discussion with management with respect to the costing method used

observation of the inventory count

observation of the warehouse, paying particular attention to dusty and damaged goods

confirmation with customers that are holding consignment inventory with respect to quantity and condition of the inventory

Save Question 14(1 point) When conducting a review engagement, how is materiality calculated?Question 14 options:

materiality is not calculated as a lower level of assurance is being provided

the concept of significance is used, rather than the concept of materiality

always as a percentage of net income before income taxes

in the same manner as an audit engagement

Save Question 15(1 point) As part of the review engagement for a small manufacturing company, which of the following would be a typical review procedure for the sales cycle?Question 15 options:

review of internal controls over the granting of credit

examination of sales documents to ensure credit approval is documented

recalculation of the taxes and extensions on a sample of invoices

comparison of sales and gross profit to the prior year