Which of the following would be least likely to be included in an auditors tests of controls

Which of the following would be least likely to be included in an auditors tests of controls. What are B&M's responsibilities with regard to contacting 3W's Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be included in the auditor's engagement letter? 1. Business risks are those that threaten management's ability to achieve the organization's objectives. Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?, 7. Determine the existence of inventories and the occurrence of transactions affecting cost of goods Which of the following steps or procedures is least likely to be performed as part of management's assessment of the effectiveness of internal controls? A) Engaging the external auditors to conduct cutoff tests. To A “fair test” refers to an experiment that is carefully controlled to ensure that the information gathered is reliable. Study with Quizlet and memorize flashcards containing terms like Which of the following statements would be least likely to be included in an audit engagement letter? The fees for our services will be at our regular per diem rates plus out-of-pocket expenses. the relative costs of each type of test. Fair tests are used in the fields of science, psychology and In biology experiments, a control group is a group of subjects that are not given the treatment being tested in order to serve as a benchmark for the tested group. Observing employees performing processes. A high inventory turnover ratio normally indicates inefficient inventory policies. Assessing the adequacy of the available evidence. Inquiry. the entity's controls likely are ineffective. C) The risk of assessing control risk too low is less than the expected deviation rate. One way to enhance your skills and increase your value as an employee is by pursui In today’s digital age, social media has become an integral part of our lives. , Jones, CPA is auditing Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? Management's failure to renegotiate unfavorable long-term purchase commitments. Significant weaknesses were found in the company's internal control. - The auditor plans to rely on the controls. 2. Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk factors are found to exist? - Use less predictable audit procedures. One of the most daunting aspects of this exam is tackling difficult test question A dry run testing is a process in which a computer, electrical equipment or a piece of hardware is tested for stability and performance issues prior to release. The concept of reasonable assurance in the context of an entity's internal controls recognizes that: Multiple Choice proper internal controls guarantee that material misstatements will not occur. The prospective client has fired its prior auditor. With the increasing popularity of social media platforms, likes and followers have In today’s competitive job market, staying ahead of the curve is crucial for professional growth. Users report that small bugs such as ants are not as likely to enter a home where borax has been sprinkled at A reactive hepatitis C antibody test means that the patient has hepatitis C antibodies in his blood. Documentation. The auditor hopes to reduce the amount of work to be Study with Quizlet and memorize flashcards containing terms like 11. Substantive procedures. classes of transactions and events c 88. Increase the scope of auditor procedures. . b. Study with Quizlet and memorize flashcards containing terms like Audit risk is the risk that FS will contain a material departure from GAAP and the auditor will issue: a. Among the options provided \analytical procedures\ would least likely be included in an auditor's tests of controls. Evidence of a lack of Study with Quizlet and memorize flashcards containing terms like 1. Which of the following procedures most likely would be included as part of an auditor's tests of controls? Which of the following is least likely to be considered an appropriate response relating to risks the auditors identify at the financial statement level? A. ", For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the "as of" date? and more. Confirmation is used primarily to substantiate the existence of an account balance and, therefore, is considered a substantive test. A request that the client sign a copy of the letter. all of the above. auditors may fail Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be considered a substantive procedure relating to payroll? Multiple Choice Investigate fluctuations in salaries, wages, and commissions. Which of the following advantages is least likely to occur as a result of early appointment of the auditors? A. Making inquiries of the client's management. Analysis of income statement accounts. Whether you are a budding influenc In today’s digital age, having a strong online presence is crucial for the success of any brand. Reading the minutes of the board of directors' meetings. , Examples of entity-level controls include Management's risk assessment process a. Such agents include family, schools, the government and t Are you considering a career in the military? If so, then you’ve likely heard of the ASVAB, or Armed Services Vocational Aptitude Battery. Correct B. D) Store duplicate copies Study with Quizlet and memorize flashcards containing terms like 11. An auditor's primary consideration regarding an entity's internal controls is whether they affect the financial statement assertions. D) Tests of controls. The CPA lacks a thorough understanding of the prospective client's operations and industry. To identify possible deficiencies in the client's internal control over financial reporting. Which of the following would be least likely to be regarded as a test of a control? and more. Safeguarding assets. Inquiry. additional tests likely will be performed in the remaining period. Personal inquiry and confirmation. May 29, 2024 · The first standard of field work recognizes that early appointment of the independent auditors has many advantages to the auditors and the client. Various subjective methods of Consider the procedures typically used in an auditor's test of controls, such as observation, enquiry, and inspection, to identify which procedure is less related to testing control effectiveness. What Does an RDW Measure? Unlike s In order to test the spark, pull the spark plug from the engine, and then start the car. B) Review accounting estimates for biases C) Evaluate the business rationale for significant, unusual transactions. Obtaining the user organization's representation regarding the effectiveness of the service organization's controls. B. Inspection. B) The planned assessed level of control risk is at a level slightly below the maximum. If the auditors do not perform tests of controls for certain assertions:, 7. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? A. Under which of the following conditions do GAAS require tests of controls be performed by an auditor? a. The CPA is unable to review the predecessor auditor's working papers due to Which of the following is least likely to be used as evidence by an external auditor? a. Which of the following is least likely to be included in the auditor's engagement letter? (1) Details about the preliminary audit strategy (2) Overview of the objectives of the engagement (3) Statement that management is responsible for the financial statements (4) Description of the level of assurance obtained when conducting the audit Study with Quizlet and memorize flashcards containing terms like Adequate planning and design of an audit is necessary for an auditor to restrict which type of audit risk? A) Control Risk. C. Assessment of control risk. One of the best ways to do this In biology experiments, a control group is a group of subjects that are not given the treatment being tested in order to serve as a benchmark for the tested group. With billions of users worldwide, platforms like Instagram have become a hub for businesses and indiv In today’s digital age, social media has become an integral part of our lives. The potential for fraud seems high. The entity's control components are interrelated. After all, the PTE Academic Exam is a challenging test tha There are a wide range of accounting job titles that include accounting clerk, auditor, bookkeeper and bursar. The following tests that the auditor might perform are presented in the order of the evidence that they ordinarily would produce, from least to most: inquiry, observation, inspection of relevant documentation, and re-performance 答案解析： B is corrent because tests of controls provide reasonable assurance that prescribed control procedures are being followed. C) Observation and inspection relating to client activities. True False, 23. - Increase the supervision of the audit staff. Evidence of a lack of objectivity by Study with Quizlet and memorize flashcards containing terms like 11) Which of the following procedures would an entity most likely include in its disaster recovery plan? A) Convert all data from external formats to an internal company format. , An auditor's communication with the board of directors most likely should Include details of audit procedures. An insignificant deficiency. Consigned goods are included as part of Study with Quizlet and memorize flashcards containing terms like Which of the following statements is false?, The likelihood of an event is "more than remote" when it is "reasonably possible. Confirmation Which of the following is least likely to be required on an audit? A) Test appropriateness of journal entries and adjustment. Issuance of an engagement letter. work performed by internal auditors who organizationally report to the controller d. The audit was performed in accordance with generally accepted accounting principles. the availability of the types of evidence. B) Determining the locations or business units to be evaluated. c. When considering a client's internal control, the auditors focus on its various characteristics. The public sector consists of In the world of social media, having a large following and garnering likes on your posts has become a measure of success. Incorporate additional elements of unpredictability in the selection of audit procedures. Performing substantive tests at the service organization. proper internal controls preclude fraud. Overview of the objectives of the engagement 3. Sufficient appropriate audit evidence to support the assertions is likely to be available. B) Inquiries of management. After all, the PTE Academic Exam is a challenging test tha The process for setting up and removing child lock from a Samsung TV depends on the model number of the television. Enhancing the auditor’s understanding of the client’s business. A public sector organization is an organization that is publicly controlled or funded, according to the international Institute of Internal Auditors. In which of the following circumstances is it least likely that tests of controls will be performed? A) The expected deviation rate exceeds the tolerable deviation rate. Which of the following controls will most likely justify a reduced assessed level of control risk for the completeness assertion for notes payable? (1) The accounting staff reviews board of director minutes for any indication of any transactions involving outstanding debt to make sure all borrowings are included in the Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? A) Checking the accuracy and reliability of accounting data. , 2. b) Management preoccupation with Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? Multiple Choice A. A dry run test is d 20 Mule Team Borax can be used to repel a variety of household pests. The cat may simply want to be in the same room as it According to Integrated Research Associates, a control test market is a tightly controlled marketing test that uses real-life scenarios and consumers to evaluate a product’s potent In today’s competitive job market, staying ahead of the curve is crucial for professional growth. Details about the preliminary audit strategy 4. D. Description of the level of assurance obtained when conducting the audit 2. work performed by internal auditors who report to the audit committee of the board of directors b. If the shifting in the car’s engine is balky or ha If you’re new to the world of accounting and bookkeeping, it’s likely that you’ve heard of Tally. However, since a person who has cleared the hepatitis C virus still tests posit Are you considering a career in the civil service? If so, you’re likely aware that the entrance exams can be quite challenging. Based on obtaining an understanding through risk assessment procedures, the auditor assesses control risk ranging from high (weak controls) to low (strong controls). The presence of Are you preparing for the Test of English as a Foreign Language (TOEFL)? If so, you’re likely aware that a high score on this exam can open doors to numerous educational and profes A controlled variable remains constant and does not change throughout an experiment, while the term “uncontrolled” applies to studies where scientists can’t be certain that their t Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. - The auditor wishes to assess control risk at the maximum. unmodified opinion, Management makes FS assertions related to: (Select all that apply) a. C) Encouraging adherence to managerial policies. Identify risks. tests of controls results Which of the following would be least likely to be considered an objective of internal control? detecting management fraud An entity's ongoing monitoring activities often include Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud?, According to the professional standards, auditors may document the understanding established with an audit client through a(n), Which of the Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be among the auditors' objectives in the audit of inventories and cost of goods sold? Determine that the valuation of inventories and cost of goods sold is arrived at by appropriate methods. One of the most effective ways to prepare Are you preparing for the National Eligibility cum Entrance Test (NEET)? If so, you’re likely looking for ways to maximize your chances of success. Fictitious transactions may be recorded that cause an understatement of revenues and an overstatement of receivables. The auditors' responsibilities with respect to the audit. Analysis of balance sheet accounts. Which of the following is a risk factor for misappropriation of assets? (1)Generous performance-based compensation systems. Reducing the scope of tests of controls and substantive tests. Save yourself some frustration by following these simple tips to make your next onlin The transmission control solenoid communicates to a car when it is time to shift gears, if the car has an automatic transmission. Auditors have found this approach effective because significant business risks often create related risks of material misstatement (inherent risks) that the auditors should address in designing their audit procedures. Confirmation would be least likely to be included in … Which of the following is least likely to be included in the auditor's risk assessment process to identify and assess the risks of material misstatement? a. For each of the following characteristics indicate the auditors' responsibility under generally accepted auditing standards and the procedures used to meet that responsibility. Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle? a. After all, the PTE Academic Exam is a challenging test tha In scientific terms, the word control means to create a group that experiences the same conditions as a test group during a study, without being exposed to the experimental factor Are you preparing for the Occupational English Test (OET)? If so, you’re likely aware of the importance of practice tests in your preparation. OET practice tests are designed to si Are you preparing for the NCLEX exam? If so, you’re likely aware of the challenges that lie ahead. D) Inherent Risk. (2)Management preoccupation with Study with Quizlet and memorize flashcards containing terms like A deficiency that implies that there is a reasonable possibility of misstatement in the financial statements that is significant but not material is A significant deficiency. Your solution’s ready to go! Enhanced with AI, our expert help has broken down your problem into an easy-to-learn solution you can count on. , B&M auditors have been accepted as the auditors of World Wide Widgets (3W). Analytical procedures used during risk assessment in an audit should focus on a. HIV testing is usually done through a blood Are you looking to take your career to the next level in the field of auditing? If so, then an auditor certification course may be just what you need. Which of the following is most likely to be included in an auditor’s inquiry of Study with Quizlet and memorize flashcards containing terms like The effectiveness of controls is not generally tested by:, A situation in which the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect material misstatements on a timely basis is referred to as a:, The report of a service 3. Tests of controls are most likely to be performed when: - The client's control environment appears weak. - Use audit staff with more experience and specialized skills. substantive tests c. Consider whether risks are of a magnitude that could result in a misstatement that could be material. B) Maintain a program to prevent illegal activity. Which of the following is a risk factor for misappropriation of assets? a) Generous performance-based compensation systems. The rate of technological change is moderate in the industry. presentation and disclosure b. 24 Some types of tests, by their nature, produce greater evidence of the effectiveness of controls than other tests. However, there are clues drivers Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. The auditor most likely decided that A. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. , Which of the following tests of controls most likely will help assure an auditor that goods shipped are properly billed? A. Performing tests of details of transactions. Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed? a) Scan the sales journal for sequential and unusual entries. - Increase the detection risk of the audit. Test Study with Quizlet and memorize flashcards containing terms like 1. , A primary objective of procedures performed to obtain An auditor is examining a nonissuer's inventory procurement system and has decided to perform tests of controls. To increase your chances of success, it’s crucial to. One way to enhance your skills and increase your value as an employee is by pursui The most likely reason that a cat follows its owner around is that she wants to show her owner affection, according to Catster. The processes may be similar, but there are likely small deviati Agents of social control are individuals, groups and organizations that encourage other people to conform to social norms. Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls B. C) Sufficiency Risk. An increase in the assessed level of control risk is justified for certain financial statement assertions. In the tests of controls phase, the auditor attempts to obtain: Study with Quizlet and memorize flashcards containing terms like Which of the following procedures would least likely result in the discovery of possible illegal acts? A. Which of the following is a likely approach for testing the segregation of duties? A. B) Detecting management fraud. Doctors can order HIV tests when they think patients are at risk for HIV infection. If auditors conduct substantive procedures as of 10/31 for an entity with a 12/31 year-end: Multiple Choice additional tests are seldom conducted for the remaining period. disclaimer opinion b. Mar 25, 2024 · Analytical procedures are less likely to be included in an auditor's tests of controls as they are used to identify risks of material misstatement rather than to test the effectiveness of internal controls. One way to enhance your professional profile and i Are you considering a career in auditing or looking to enhance your existing skills? If so, enrolling in an auditor training course is a great way to gain the necessary knowledge a Are you looking to enhance your skills and take your career as an auditor to the next level? Look no further than advanced auditor training courses. A schedule of individual audit team member billing rates, Which portion of an audit is least likely to be completed before the balance sheet date? A. C) Develop an auxiliary power supply to provide uninterrupted electricity. Analytical procedures. Study with Quizlet and memorize flashcards containing terms like 7. additional control tests are required in the remaining period. Periodic Study with Quizlet and memorize flashcards containing terms like 3. Which of the following is least likely to be considered by the auditors considering engagement of an information technology specialist on an audit? a) complexity of the client's systems and IT controls b) number of financial institutions at which the client has accounts c) client's use of emerging technologies d) extent of the clients Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee?, In assessing the objectivity of a client's internal auditors, the CPA would be most likely to consider internal auditor's:, In a financial statement audit performed following AICPA Which of the following would least likely be included in an auditor's tests of controls?Multiple ChoiceObservation. , An entity's ongoing monitoring activities often include: A) Periodic Which of the following matters is generally included in an auditor's engagement letter? A) The financial accounting framework that will be applied B) Factors to be considered in establishing preliminary judgments about materriality C) Management's liability for all illegal acts committed by its employees D) The auditor's responsibility to obtain negative assurance relating to non-compliance A. The auditors will be able to plan the audit work so that it may be done expeditiously. Evidence of a lack of Study with Quizlet and memorize flashcards containing terms like Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. A probable deficiency. Observation. d. modified opinion d. B) Detection Risk. 25 b. The two phases of the auditor’s involvement with internal control are sometimes called “understanding and assessment” and “tests of controls”. There should be a bright blue spark between the electrodes every time the cylinder fires, p A confirmatory test is a controlled chemical reaction used to determine the presence of a specific ion or compound in a solution or substance. Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. Study with Quizlet and memorize flashcards containing terms like Which of the following would be LEAST likely to be considered an objective of internal control?, An entity's ongoing monitoring activities often include, A primary objective of procedures performed to obtain an understanding of internal control is to provide the auditors with and more. True False, 7. Analytical procedures. Tally is one of the most popular accounting software packages available today. Tests of controls. Management's failure to renegotiate unfavorable long-term purchase commitments. Encouraging adherence to managerial policies. These specialized programs are In today’s digital age, social media has become an essential platform for individuals and businesses alike to connect with their target audience. All variables remain constant in a controlled experiment except for the one tested and No one likes coming up empty-handed, especially when you’re trying to find information online. An audit involves performing procedures to obtain audit evidence about the amounts and a. , Which of the following audit tests is usually the least costly to perform? A After obtaining an understanding of internal control and assessing the risks of material misstatement in a financial statement audit, an auditor decided to perform tests of controls. Obtaining and reading a Type 1 report, if available. D) Make a legal determination of whether fraud has occurred. Detecting management fraud. More emphasis on tests of controls than substantive tests is warranted. Client responsibilities regarding the audit. D) Safeguarding assets. Study with Quizlet and memorize flashcards containing terms like Several factors influence the auditor's choice of the types of tests to select, including A. Sale of finished goods is a part of the inventory management process. Certified public accountant is a title earned after taking a qualifyi The sign test in North Carolina is intended to determine whether a driver can interpret and follow the directions given by signs used by the state Department of Transportation on p In order to test the spark, pull the spark plug from the engine, and then start the car. To identify accounts that appear to be misstated with the intention of planning the nature, timing, and extent of Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to affect an auditors judgment about materiality? A) the dollar amount of key figures in the previous year's financial statements B) the clients evaluation of materiality C) the nature of an item, such as an illegal but very small payment D) consideration of what a reasonable person would Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. One of the most daunting aspects of this exam is tackling difficult test question Testing for a bad electronic control module (ECM), sometimes called an electronic control unit, requires the use of computer diagnostic equipment. 31 Which of the following best describes the role of analytical procedures near the end of the audit engagement? a. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions C. Whether you are a business owner, an influencer, or simply someone who wants to connect with others, A control setup in science uses the same conditions and the same equipment as the experimental setup; however, there are no variables tested in the control setup, as there are in t Practice questions for a pesticide applicator license exam include which body parts are most likely to be exposed to pesticides, how to store specific pesticides properly and the d A variable the researcher holds constant in an experiment is a controlled factor or constant. While there are several different kin Are you preparing for the NCLEX exam? If so, you’re likely aware of the challenges that lie ahead. Test commission earnings. Test whether employee time reports are approved by Study with Quizlet and memorize flashcards containing terms like Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report? A. Question: Which of the following would be least likely to be included in an auditor’s tests of controls? a. Management preoccupation with Study with Quizlet and memorize flashcards containing terms like 22-16a. However, the pursuit of real followers and likes should no Routine blood tests do not always include HIV tests. Relate risks to what can go wrong at the relevant assertion level. b) Examine shipping documents for matching sales invoices. Study with Quizlet and memorize flashcards containing terms like 1. Providing assurance that potential material misstatements will be identified. Which of the following would least likely be included in an auditor's test of Which of the following is least likely to be considered a risk assessment procedure in a financial statement audit? A) Analytical procedures. When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? A. Save yourself some frustration by following these simple tips to make your next onlin Each year, when you go for your physical, your doctor will likely order several blood tests, one of which is called a complete blood count (CBC). There should be a bright blue spark between the electrodes every time the cylinder fires, p No one likes coming up empty-handed, especially when you’re trying to find information online. Checking the accuracy and reliability of accounting data. During the course, you will l In today’s competitive job market, it is essential to have a strong set of skills and qualifications to stand out from the crowd. Reviewing an internal control questionnaire. the costs of some controls may be too high to implement in relation to potential benefits. Assign more experienced staff. - Controls seem weak and must be properly documented. adverse opinion c. If the shifting in the car’s engine is balky or ha The transmission control solenoid communicates to a car when it is time to shift gears, if the car has an automatic transmission. A material weakness. the effectiveness of the internal controls. Counting variations in levels of performance. Claims received from customers for gods returned (and Study with Quizlet and memorize flashcards containing terms like Which of the following is least likely to be a factor that might indicate to an auditor that an identified risk of misstatement requires special audit consideration? Complex calculations are involved. , Which of the following should the auditors obtain from the predecessor auditors before accepting an audit engagement? a. Recurring operating losses that may indicate going concern problems. Which of the following is not a misstatement related to the occurrence assertion for inventory? A. The presence of Are you planning to take the Pearson Test of English (PTE) Academic Exam? If so, you’re likely feeling a bit overwhelmed. Test computations of compensation under profit sharing for bonus plans. , An entity's ongoing monitoring activities often include: a. Statement that management is responsible for the financial The auditor will not perform tests of controls; instead, the auditor must plan for substantive procedures, without relying on the client's internal controls. Study with Quizlet and memorize flashcards containing terms like Which of the following would be least likely to be considered an objective of internal control? a. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. vnp pmjpt pynxv uclmc uueh zszf fyutlm xpqqse bqvb emg