Gleim 3.4
Which of the following procedures is the auditor most likely to perform after accepting an initial audit engagement?
Tour the client's facilities.
The components of internal control include
a process of managing risk relevant to preparing financial statements
The objective of performing analytical procedures in planning an audit is to identify the existence of
unusual transactions and events.
A CPA wishes to determine how various issuers have complied with the disclosure requirements of a new financial accounting standard. Which of the following information sources would the CPA most likely consult for this information?
AICPA Accounting Trends and Techniques.
Which of the following statements is true concerning analytical procedures used as risk assessment procedures?
Analytical procedures used as risk assessment procedures ordinarily use data aggregated at a high level.
When an auditor obtains an understanding of the entity and its environment, including its internal control, which of the following is the most likely order of performing the steps A through C below? A= tests of controls B=preparation of a flowchart documenting the understanding of the client's internal control C=substantive procedures
BAC
An auditor is planning an audit engagement for a new client in a business that is unfamiliar to the auditor. Which of the following would be the least useful source of information for the auditor during the preliminary planning stage, when the auditor is trying to obtain a general understanding of audit problems that might be encountered?
Results of performing substantive procedures.
Analytical procedures used as risk assessment procedures
address the risk of material misstatement of revenue due to fraudulent financial reporting.
An auditor most likely obtains an understanding of a new client to
identify areas of audit emphasis.
Prior to beginning the field work on a new audit engagement in which a CPA does not possess expertise in the industry in which the client operates, the CPA should
perform risk assessment procedures.
To obtain an understanding of a continuing client in planning an audit, an auditor most likely would
read internal audit reports.
