Audit Practice Test 1

Relevant

Assertions such as existence or occurrence, Rights and obligations, completeness, and cutoff are considered ___________ assertions

transaction

The sequence of procedures applied by the company (client) in processing a particular type of recurring event is called a ___________ cycle

Big Data

Data analytics is the examination of large datasets or ____________ ____________ to uncover hidden patterns, unknown correlations, market trends and other useful business applications

Reperformance

the auditor's independent tests of client accounting procedures or controls that were originally done as part of the entity's accounting and internal control system

Sarbanes-Oxley Act

Inspections completed by the PCAOB are performed to assess an accounting firm's compliance are provided for in:

Time Budget

A basis for estimating fees, communication areas of high risk and measuring the efficiency of staff is provided by the ___________ ________

Financial statement

A lack of sufficient capital to continue operations is considered a ____________ _____________ level risk

Relevant assertions about major accounts

An integrated audit requires the auditors to test controls for all

analytical procedure

Calculating days sales in ending accounts receivable and comparing it to the prior year would be an example of

collusion

Control activities designed to ensure separation of duties may be circumvented by _____________ among two or more people

Consistency

use of the same accounting principles and methods from year to year within a company

expectation gag

Many of the Treadway Commission's recommendations lead to a group of Statements on Auditing Standards known as the ____________ _________ standards

Service Organizations

Processing services are offered to user entities by ___________ ________________

preface

Recent changes are presented in the _________ section of the AICPA Code of Professional Conduct

ASB

The AICPA has assigned responsibility for issuing official pronouncements on auditing matters to the

Selected Procedures

The AICPA recently developed the ____________ _________ engagement which is similar to agreed-upon procedures engagements

Risk Tolerance

The degree, amount, or volume of risk that an organization or individual will withstand.

Suitable criteria

The existence of ____________ ___________ that serve as the standards or benchmarks to measure and present the subject matter is essential to performing an attest engagement

authorization; custody

The organizations structure of an organization should separate responsibilities for _______________ of transactions, record keeping for transactions, and ____________ of assets.

quality control standards

Standards that provide CPA firms with guidance to provide reasonable assurance that the firm's engagements are conducted in accordance with applicable professional standards are called