Question 9 (1 point)

In which step of the audit process do auditors consider what can go wrong?

Question 9 options:

	Assess the risks of misstatement
	Form an opinion
	Obtain an understanding of the client
	Perform further audit procedures

Question 10 (1 point)

Which of the following is a reason to consider qualitative factors of materiality?

Question 10 options:

	Average dollar size of transactions
	Historical number of material transactions
	Number of transactions in an account
	Related party transactions

Question 11 (1 point)

Which type of audit documentation combines similar general ledger accounts?

Question 11 options:

	Adjusting and reclassification entries
	Lead schedules
	Supporting schedules
	Working trial balance

Question 12 (1 point)

Which of the following is a relevant assertion level risk?

Question 12 options:

	Accounting policies risk
	Completeness risk
	Control environment risk
	Going concern risk

Question 13 (1 point)

What should the auditors do if they uncover evidence of the existence of fraud?

Question 13 options:

	Communicate their findings to the local authorities.
	Communicate their findings to company management.
	Communicate their findings to the SEC.
	Communicate their findings to their attorneys.

Question 14 (1 point)

A function of audit documentation is that it should state results of tests performed. Which of the following items would be omitted from reported test results?

Question 14 options:

	Accounting knowledge of key financial staff
	Material misstatements in financial statements
	Proposed audit adjustments
	Significant difficulties encountered

Question 15 (1 point)

Which of the following risks is an example of a financial statement level risk?

Question 15 options:

	Inability to prove existence
	Insufficient capital to continue operations
	Presentation and disclosure inconsistencies
	Valuation or allocation errors

Question 16 (1 point)

What is a common means of determining materiality of net income before taxes?

Question 16 options:

	15% of net income before taxes
	510% of net income before taxes
	1015% of net income before taxes
	It depends on the size of the company

Question 17 (1 point)

Which type of audit documentation includes flowcharts and time budgets?

Question 17 options:

	Administrative working papers
	Corroborative working papers
	Lead schedules
	Supporting schedules

Question 18 (1 point)

In which audit procedure to gather evidence does the auditor compare the relationship between financial data sets?

Question 18 options:

	Analytical procedures
	Inspection of records and documents
	Recalculation of accuracy
	Reperformance of procedures