Performance of audit procedures at an interim date causes the risk of material misstatement occurring between the interim date and the end of the year to _________________.

Increase

Decrease

Become more difficult to ascertain

Become less difficult to ascertain

Remain the same

Question 14 of 45

Which of the following statements are true? (There are multiple correct answers and you should choose all that are correct)

The Iron Curtain method focuses on the materiality of current year misstatements and the reversing effect of prior-year misstatements on the income statement.

It is true that the discovery of an intentional misstatement, even if immaterial, could impact the auditor's opinion on the effectiveness of the client's external controls.

Pension obligations is a long-term liability account with a high risk of material misstatement.

Complex auditing judgments often involve evaluating the client's estimates for allowance for doubtful accounts.

One of the problems auditors will have in regards to complex judgments is related to evaluating a client's internal control.

Question 15 of 45

_______________ describes the type of threat that occurs when management threatens to replace the audit firm because of a disagreement over an accounting issue.

Management participation threat.

Undue influence threat.

Adverse interest threat.

Coercion threat.

Financial self-interest threat.

Question 16 of 45

______________ is the audit report referred to when the auditor has no reservations about management's financial statements.

An unqualified report

A peer review

An adverse report

A qualified report

An integrated report