true or false exam auditing course

Paragraph Styles A) True and false questions (25 points) for each statement indicate if the statement correct (T) or false (F): LO-3 1) The auditors determine which disclosures must be presented in the financial statements, 2) Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error. 3) The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm. 4) All evidence must have the same level of persuasiveness. 5) Objective evidence is more reliable, and hence more persuasive, than subjective evidence. LO--4 6) Auditor judgment is the primary determinant in determining the amount of evidence gathered. 7) Analytical procedures must be used in the planning and completion phases of the audit. 8) Obtaining sufficient appropriate evidence is essential if the CPA firm is to minimize legal liability. 9) Because of audit risk, some CPA firms now refuse any new clients in certain high-risk industries. LO45 10) Determining materiality requires professional judgment. 11) The lower the dollar amount of the preliminary judgment the more audit evidence is required. 12) Management has a legal and professional responsibility to be sure that the financial statements are prepared in accordance with reporting requirements of applicable accounting frameworks. 13) When a company designs and implements internal controls, cost of the controls is not a valid consideration. Paragraph Styles A) True and false questions (25 points) for each statement indicate if the statement correct (T) or false (F): LO-3 1) The auditors determine which disclosures must be presented in the financial statements, 2) Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error. 3) The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm. 4) All evidence must have the same level of persuasiveness. 5) Objective evidence is more reliable, and hence more persuasive, than subjective evidence. LO--4 6) Auditor judgment is the primary determinant in determining the amount of evidence gathered. 7) Analytical procedures must be used in the planning and completion phases of the audit. 8) Obtaining sufficient appropriate evidence is essential if the CPA firm is to minimize legal liability. 9) Because of audit risk, some CPA firms now refuse any new clients in certain high-risk industries. LO45 10) Determining materiality requires professional judgment. 11) The lower the dollar amount of the preliminary judgment the more audit evidence is required. 12) Management has a legal and professional responsibility to be sure that the financial statements are prepared in accordance with reporting requirements of applicable accounting frameworks. 13) When a company designs and implements internal controls, cost of the controls is not a valid consideration