Professional Documents
Culture Documents
To Download tutorial Copy and Paste below Link into your Browser
https://www.essayblue.com/downloads/acct-444-week-2-quiz/?ref=182
Question 1. 1. (TCO 4) To succeed in an action against the auditor, the client must be able to
show that (Points : 3)
1. (TCO 4) In connection with the audit of financial statements, an independent auditor could be
responsible for failure to detect a material fraud if (Points : 3)
Question 2. 2. (TCO 4) The principal issue to be resolved in cases involving alleged negligence
is usually (Points : 3)
the amount of the damages suffered by plaintiff.
whether to impose punitive damages on the defendant.
the level of care exercised by the CPA.
whether defendant was involved in fraud.
Chapter 5, 6 & 7
2. (TCO 4) The principal issue to be resolved in cases involving alleged negligence is usually
(Points : 3)
Question 3. 3. (TCO 4) While performing services for their clients, professionals have a duty to
provide a level of care that is (Points : 3)
Chapter 5
Question 4. 4. (TCO 4) Tort actions against CPAs are more common than breach of contract
actions because (Points : 3)
Question 5. 5. (TCO 4) The responsibility for adopting sound accounting policies and
maintaining adequate internal control rests with the (Points : 3)
board of directors.
company management.
financial statement auditor.
companys internal audit department.
Chapter 6
Question 6. 6. (TCO 3) Which of the following is not one of the reasons that auditors provide
only reasonable assurance on the financial statements? (Points : 3)
The auditor commonly examines a sample, rather than the entire population of transactions.
Accounting presentations contain complex estimates, which involve uncertainty.
Fraudulently prepared financial statements are often difficult to detect.
Auditors believe that reasonable assurance is sufficient in the vast majority of cases.
Chapter 6
6. (TCO 3) Which of the following statements is most correct regarding errors and fraud?
(Points : 3)
Question 7. 7. (TCO 3) Which of the following is not one of the factors of the fraud triangle?
(Points : 3)
Incentives/pressures
Attitudes/rationalization
Opportunities
Psychological make-up
Chapter 5 or 11
7. (TCO 3) In the fraud triangle, fraudulent financial reporting and misappropriation of assets
(Points : 3)
Chapter 11
assets.
liabilities.
revenues.
all of the above.
Chapter 11
8. (TCO 3) Because of the risk of material misstatements due to fraud, an audit of financial
statements in accordance with generally accepted auditing standards should be performed with
an attitude of (Points : 3)
objective judgment.
impartial conservatism.
independent integrity.
professional skepticism.
Chapter 11
Question 10. 10. (TCO 3) Auditor responses to fraud risks include which of the following?
(Points : 3)
Change the overall conduct of the audit to respond to identified fraud risks.
Design and perform audit procedures to address identified risks.
Perform procedures to address the risk of management override of controls.
All of the above.
Chapter 11
10. (TCO 3) Which of the following characteristics is most likely to heighten an auditors
concern about the risk of material misstatements, due to fraud in an entitys financial statements?
(Points : 3)
Chapter 11