Question 1 (1 point)

Which of the following is an inappropriate response to discovering fraud risks?

Question 1 options:

	Change the audit procedures performed.
	Modify the approach as to how the audit is conducted.
	Perform procedures to address management control overrides.
	Recalculate materiality levels.

Question 2 (1 point)

Which of the following considerations in accepting a new client is least likely to affect the decision?

Question 2 options:

	Evaluation of the risks in accepting a new client
	How much the audit firm will collect in fees from the new client
	The existing going concern issues the client is facing
	The existing liabilities in accepting a new client

Question 3 (1 point)

In which of the following circumstances would auditors use evaluation materiality?

Question 3 options:

	When it is the client's first audit and no materiality levels have been set.
	When it is ineffective to use a sliding scale.
	When misstatements are found and the materiality of those misstatements needs to be analyzed.
	When overall materiality is set and the individual account materiality levels need to be determined.

Question 4 (1 point)

Which type of audit documentation is considered the backbone of the entire set of working papers?

Question 4 options:

	Adjusting and reclassification entries
	Lead schedules
	Reconciliations
	Working trial balance

Question 5 (1 point)

What is a common means of determining materiality of total assets?

Question 5 options:

	1% of total assets
	2% of total assets
	5% of total assets
	It depends on the size of the company

Question 6 (1 point)

How is a client's statement of cash flows an important source of information for the auditor?

Question 6 options:

	To assess future earnings potential
	To allow a prior period analysis
	To enable a risk assessment
	To understand the cash balances

Question 7 (1 point)

Which of the following is least likely to be considered in an overall audit strategy?

Question 7 options:

	Client basis of reporting
	Client fiscal year
	Client industry reporting requirements
	Client location

Question 8 (1 point)

Which type of audit documentation includes board meeting minutes?

Question 8 options:

	Analysis of ledger accounts
	Computational working papers
	Corroborating documents
	Supporting schedules