AUDIT pop test answers.docx
- 文档编号:10599511
- 上传时间:2023-02-21
- 格式:DOCX
- 页数:31
- 大小:28.35KB
AUDIT pop test answers.docx
《AUDIT pop test answers.docx》由会员分享,可在线阅读,更多相关《AUDIT pop test answers.docx(31页珍藏版)》请在冰豆网上搜索。
AUDITpoptestanswers
HJCPAAUDITPOPTESTSANSWERS
6thAugust,2012
AnswersandRationales
AUD:
InternalControl-ConceptsandStandards
Question1:
Whenobtaininganunderstandingofanentity'sinternalcontrolprocedures,anauditorshouldconcentrateonthesubstanceoftheprocedures,ratherthantheirform,because:
A.Theproceduresmaybeoperatingeffectivelybutmaynotbedocumented.
B.Managementmayestablishappropriateproceduresbutnotenforcecompliancewiththem.
C.Theproceduresmaybesoinappropriatethatnorelianceiscontemplatedbytheauditor.
D.Managementmayimplementprocedureswhosecostsexceedtheirbenefits.
ThecorrectanswerisB.
A.Incorrect...Theauditorisconcernedabouttheeffectivenessofthecontrolanditsabilitytopreventordetectmaterialmisstatementsinthefinancialstatements.Iftheproceduresareoperatingeffectively,eventhoughtheyarenotdocumented,theauditor'sobjectivesareserved.Note,however,thatifthecontrolsarenotdocumented,theauditormaybeunawareofthem.
B.Correct!
Internalcontrolsmayhavebeenplacedinoperation,yetmaynotbeeffectivebecausetheyarenotproperlyactedupon.Theauditorisconcernedabouttheeffectivenessofthecontrolanditsabilitytopreventordetectmaterialmisstatementsinthefinancialstatements.Asaresult,theauditormustfocusonthesubstanceofthecontrolratherthantheform.
C.Incorrect...Theauditorneedstoobtainanunderstandingoftheinternalcontrolsysteminordertoplantheaudit.Ingainingtheunderstanding,theauditorwilldeterminewhichproceduresarerelevanttospecificfinancialstatementassertions(i.e.,areappropriate)andwillconsiderwhethertorelyonsuchprocedures.Theauditordoesnotgainanunderstandingbecausesomeproceduresareinappropriatebutinordertodeterminewhethertheyareappropriate.
D.Incorrect...Theauditorisnotspecificallyconcernedastowhetherthecostsofimplementedproceduresexceedtheirbenefits.Rathertheauditorisrequiredtogainanunderstandingoftheinternalcontrolsinordertoplantheaudit.Iftheauditorbelievesthatthecostsofcertaincontrolsexceedtheirbenefits,recommendationspertainingtothosecontrolsmaybemadeinthemanagementletter.
Question2:
Whichofthefollowingstatementsaboutinternalcontrolstructureiscorrect?
A.Aproperlymaintainedinternalcontrolstructurereasonablyensuresthatcollusionamongemployeescannotoccur.
B.Theestablishmentandmaintenanceoftheinternalcontrolstructureareimportantresponsibilitiesoftheinternalauditor.
C.Anexceptionallystronginternalcontrolstructureisenoughfortheauditortoeliminatesubstantivetestsonasignificantaccountbalance.
D.Thecost-benefitrelationshipisaprimarycriterionthatshouldbeconsideredindesigninganinternalcontrolstructure.
ThecorrectanswerisD.
A.Incorrect...Aninherentlimitationofanysystemofinternalcontroliscircumventionofcontrolsbycollusionamongtwoormorepeople.Becauseofinherentlimitationslikethisone,onlyreasonableassurancecanbeprovidedthatanentitywillachieveitscontrolobjectives.
B.Incorrect...Whileaninternalauditor'sresponsibilitiesfrequentlyincludemonitoringoftheinternalcontrolsystem,theestablishmentandmaintenanceofinternalcontrolaretheresponsibilitiesofmanagement.Internalauditactivitieswouldbedirectedmoretowardevaluationoftheadequacyandeffectivenessofacompany'sinternalcontrolsystemaswellasdeterminationofthelevelofcompliancerelatedthereto.
C.Incorrect...Theassessedlevelofcontrolriskcanneverbesufficientlylowastoeliminateallsubstantivetestsonasignificantaccountbalance.Theauditorisrequiredtoperformsubstantivetestsonsignificantaccountbalancesandtransactionclassesregardlessoftheassessedlevelofcontrolrisk.
D.Correct!
Aprimarycriterionofanysystemofinternalcontrolisthecost-benefitrelationship.Thecostofanentity'sinternalcontrolshouldnotexceedthebenefitstobederived.
Question3:
Forcertaincontrols,suchassegregationofduties,documentaryevidencemaynotexist.Anauditorwouldmostlikelytesttheproceduresby:
A.Reperformanceandcorroboration
B.Observationandinquiry
C.Inspectionandvouching
D.Confirmationandrecomputation
ThecorrectanswerisB.
A.Incorrect...Segregationofdutiesandsimilarcontrolswhichlackdocumentationoftheirfunctioningarebesttestedthroughobservationandinquiry.Reperformance,andpresumablyverbalcorroboration,wouldnotensurethatthecontrolprocedurewasperformedinthecorrectmannerbytheemployee.
B.Correct!
Segregationofdutiesandsimilarcontrolswhichlackdocumentationoftheirfunctioningarebesttestedthroughobservationandinquiry.
C.Incorrect...Segregationofdutiesandsimilarcontrolswhichlackdocumentationoftheirfunctioningarebesttestedthroughobservationandinquiry.Inspectionandvouchingarebettersuitedtotestsofcontrolsforwhichdocumentaryevidenceexists.
D.Incorrect...Segregationofdutiesandsimilarcontrolswhichlackdocumentationoftheirfunctioningarebesttestedthroughobservationandinquiry.Confirmationandrecomputationaregenerallyconsideredsubstantivetests,nottestsofcontrol.
Question4:
Regardlessoftheassessedlevelofcontrolrisk,anauditorwouldperformsome:
A.Testsofcontrolstodeterminetheeffectivenessofinternalcontrolpolicies
B.Analyticalprocedurestoverifythedesignofinternalcontrolprocedures
C.Substantiveteststorestrictdetectionriskforsignificanttransactionclasses
D.Dual-purposeteststoevaluateboththeriskofmonetarymisstatementandpreliminarycontrolrisk
ThecorrectanswerisC.
A.Incorrect...Testsofcontrolsarenotrequiredtobeperformed.Ifcontrolriskisassessedatmaximum,notestsofcontrolswouldbeperformed.
B.Incorrect...Analyticalproceduresarenotusedtoverifythedesignofinternalcontrol.Theyareusedinplanning,assubstantivetests,andforoverallreview.
C.Correct!
Anauditormustalwaysperformsubstantivetestsforsignificantaccountbalancesandtransactionclasses.Althoughaloweredcontrolriskassessmentallowstheauditortoreducesubstantivetesting,itcannotbeusedtoeliminatesubstantivetesting.
D.Incorrect...Theauditorisnotrequiredtoperformtestsofcontrols.Asaresult,itwouldnotbenecessarytoperformdual-purposetestswhicharebothtestsofcontrolsandsubstantivetestsoftransactions.Ifcontrolriskisassessedatmaximum,notestsofcontrolswouldbeperformed.
Question5:
Whichofthefollowingstatementsconcerningmaterialweaknessesandsignificantdeficienciesiscorrect?
A.Anauditorshouldidentifyandcommunicatematerialweaknessesseparatelyfromsignificantdeficiencies.
B.Anauditormaystateinthecommunicationoninternalcontrolmattersthatnosignificantdeficiencieswerefound.
C.Anauditorshouldreportimmediatelymaterialweaknessesandsignificantdeficienciesdiscoveredduringanaudit.
D.Allsignificantdeficienciesarematerialweaknesses.
ThecorrectanswerisA.
A.Correct!
SASNo.115providesasamplewrittencommunicationaboutinternalcontrolrelatedmattersidentifiedinanauditwhichseparatelyreportsmaterialweaknessesandsignificantdeficienciesifbothcategoriesofdeficiencieshavebeenidentified.
B.Incorrect...Anauditorispermittedtostateinawrittencommunicationaboutinternalcontrolthatno"materialweaknesses"werefound.However,theauditorisprohibitedfromstatingthatno"significantdeficiencies"werefound.
C.Incorrect...Significantdeficienciesandmaterialweaknessesmaybereportedatanytime,eitherduringtheauditorattheendoftheaudit.
D.Incorrect...Allsignificantdeficienciesarenotmaterialweaknesses.Materialweaknessesaresignificantdeficiencieswhichfailtoreducetoarelativelylowleveltheriskofmaterialmisstatementsoccurringinthefinancialstatements.
17thMay,2012
Auditing&Attestation>AuditProfession&Planning-PartI>Audit-GeneralIssues
Question1
Inplanninganaudit,anauditorwouldmostlikelyobtainanunderstandingofacontinuingclient'sbusinessby
AReevaluatetheclient'sinternalcontrolenvironment.
BPerformingtestsofdetailsoftransactionsandbalances.
CReadingspecializedindustryjournals.
DReviewingprior-yearworkingpapersandthepermanentfilefortheclient.
ThecorrectanswerwasD.
Auditingstandardsstatethatknowledgeofanentity'sbusinessisordinarilyobtainedthroughexperiencewiththeentityoritsindustryandinquiryofpersonneloftheentity.Workingpapersfromprioryearsmaycontainusefulinformationaboutthenatureofthebusiness,organizationalstructure,operatingcharacteristics,andtransactionsthatmayrequirespecialconsideration.Othersourcesmaybeauditguides,industrypublications,financialstatementsofotherentitiesintheindustry,textbooks,periodicals,andindividualsknowledgeableabouttheindustry.
Question2
InaccordancewithSASNo.105(AUSection150),whichofthefollowingcorrectlydenotestherevisedwordingofthefirstgeneralstandardofauditing?
ATheauditmustbeperformedbyapersonorpersonswithacollegedegreeinaccounting.
BTheauditmustbeperformedbyapersonorpersonswhoarepartnersinaCPAfirm
CTheauditmustbeperformedbyapersonorpersonshavingadequatetechnicaltrainingandproficiencyasanauditor.
DTheauditshouldbeperformedbyapersonorpersonshavingadequatetechnicaltrainingandproficiencyasanauditor.
ThecorrectanswerwasC.
SASNo.105(AUSection150)revisestheauditingsta
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- AUDIT pop test answers