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