Auditing Theory Test Bank

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416) In an integrated audit, which of the following lead(s) to an adverse opinion on internal
control?
a. Material weaknesses Yes; Significant deficiencies Yes
b. Material weaknesses Yes; Significant deficiencies No
c. Material weaknesses No; Significant deficiencies Yes
d. Material weaknesses No; Significant deficiencies No
b. Material weaknesses Yes; Significant deficiencies No
417) A client erroneously recorded a large purchase twice. Which of the following internal
control
measures would be most likely to detect this error in a timely and efficient manner?
a. Reconciling vendors' monthly statements with subsidiary payable ledger accounts.
b. Tracing totals from the purchases journal to the ledger accounts.
c. Sending written quarterly confirmations to all vendors
d. Footing the purchases journal.
a. Reconciling vendors' monthly statements with subsidiary payable ledger
accounts.
418) In determining whether transactions have been recorded, the direction of the audit
testing
should be from the
a. Original source documents
b. General ledger balances
c. General journal entries
d. Adjusted trial balance
a. Original source documents
419) Which of the following factors most likely would affect an auditor's judgment about the
quantity,
type, and content of the auditor's working papers?
a. The assessed level of control risk
b. The number of personnel assigned to the audit
c. The content of the management representation letter
d. The likelihood of a review by a concurring (second) partner
a. The assessed level of control risk
420) Which of the following statements is correct concerning statistical sampling in tests of
controls?
a. As the population size increases, the sample size should increase proportionately,
c. There is an inverse relationship between the expected population deviation rate and the
sample
size.
d. In determining tolerable rate, an auditor considers detection risk and the sample size.
d. Deviations from specific internal control procedures at a given rate ordinarily result in
misstatements at a lower rate.
d. Deviations from specific internal control procedures at a given rate ordinarily
result in
Auditing Theory Test Bank
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misstatements at a lower rate.