Homework answers / question archive / University of Tasmania BFA 713 CHAPTER 04 1)Who is responsible for the preparation of the financial report? Original accounting data comprises:   Which of the following items is an example of professional scepticism? Which of the following tests would involve the exercising of professional judgment? Which audit assertion relates to ensuring that all recorded sales are valid? Which of the following audit objectives relates primarily to the financial report assertion of valuation and allocation? Which of the following is not a financial report assertion? Your audit client is a retailer that sells some of its own merchandise and a large proportion of merchandise held on consignment from suppliers

University of Tasmania BFA 713 CHAPTER 04 1)Who is responsible for the preparation of the financial report? Original accounting data comprises:   Which of the following items is an example of professional scepticism? Which of the following tests would involve the exercising of professional judgment? Which audit assertion relates to ensuring that all recorded sales are valid? Which of the following audit objectives relates primarily to the financial report assertion of valuation and allocation? Which of the following is not a financial report assertion? Your audit client is a retailer that sells some of its own merchandise and a large proportion of merchandise held on consignment from suppliers

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36. Which of the following statements relating to the appropriateness of audit evidence is always true?
37. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?
38. The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such a misstatement does exist is:
39. Auditors can eliminate engagement risk:
40. The risk that, due to the application of an inappropriate audit procedure, an auditor will conclude that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:
41. As the acceptable level of detection risk decreases, an auditor may change the:
42. As the acceptable level of detection risk decreases, an auditor may change the:
43. As the acceptable level of detection risk decreases, the assurance directly provided from:
44. As the acceptable level of detection risk increases, an auditor may change the:
45. The auditor faces a risk that the audit will not detect material misstatements that occur in the accounting process. In regard to minimising this risk, the auditor primarily relies on:
46. The situation and circumstances can dictate the level of certain risks no matter what the auditor does. However, the auditor is always able to decide to reduce one of the following risks:          
47. The extent of substantive tests for an assertion in relation to the assessed level of inherent risk varies in a relationship that is ordinarily:
48. Which of the following best describes the concept of audit risk?
49. Engagement risk is:
50. Inherent risk and control risk differ from detection risk in that they:
51. Which of the following is not a qualitative factor that may affect an auditor’s establishment of materiality?
52. Which of the following would an auditor be most likely to use in determining the preliminary judgment about materiality?
53. Which one of the following statements is correct concerning the concept of materiality?
54. Which of the following relatively small misstatements would most likely have a material effect on an entity’s financial report?
55. Your preliminary audit plan for Astro Ltd states that planning materiality is set at one per cent of total assets. This planning materiality amount:
56. When considering materiality for planning purposes, an auditor believes that misstatements aggregating $10 000 would have a material effect on an entity’s income statement, but that misstatements would have to aggregate $20 000 to materially affect the statement of financial position. Ordinarily, it would be appropriate to design auditing procedures that would be expected to detect misstatements that aggregate:
57. Which of the following tests is intended to detect deviations from prescribed Accounting Department procedures?
58. Which of the following procedures would be least likely to be included in an auditor’s test of controls?
59. All of the following auditing procedures are substantive tests except:
60. ‘Dual-purpose tests’ is a term used for:
61. Which of the following statements concerning the auditor’s use of the work of an expert is correct?
62. Audit documentation prepared on audits of publicly-held clients is the property of the:
63. All of the following documents are typically in the current file except:
64. Audit documents record the results of the auditor’s evidence-gathering procedures. When preparing audit documents, the auditor should remember that:
65. Audit documents that record the procedures used by the auditor to gather evidence should be:
66. Audit documentation:
67. Which of the following is not a factor affecting the independent auditor’s judgment as to the quantity, type and content of audit working papers?
68. In planning an audit engagement, which of the following is a factor that affects the independent auditor’s judgment as to the quantity, type and content of working papers?      
69. An auditor’s working papers will generally be least likely to include documentation showing how the:
70. The current file of an auditor’s working papers is most likely to include a copy of the:
71. Which of the following is not a primary purpose of audit working papers?