ACCT 555 External Auditing Week 3 Homework Assignment
Week 3 Homework
6-19 (Objective 6-1) The following questions concern the reasons auditors do audits. Choose the best response.
1. Which of the following best describes the reason why an independent auditor reports on financial statements?
1. Because of the risk of material misstatement, an audit should be planned and performed with an attitude of
1. The major reason an independent auditor gathers audit evidence is to
6-20 (Objective 6-3) The following questions deal with errors and fraud. Choose the best response.
1. An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors and fraud that might have a material effect on the financial statements. Which of the following, if material, is a fraud as defined in auditing standards?
1. What assurance does the auditor provide that errors, fraud, and direct-effect illegal acts that are material to the financial statements will be detected?
6-27 (Objectives 6-6, 6-7) The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a through f), management assertions about classes of transactions (1 through 5), and general transaction-related audit objectives (6 through 11).
Specific Transaction-Related Audit Objective
1. Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded.
7-25 (Objectives 7-3, 7-4) The following questions concern persuasiveness of evidence. Choose the best response.
1. Which of the following types of documentary evidence should the auditor consider to be the most reliable?
1. Which of the following statements concerning audit evidence is true?
1. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the...