Question 1 / 61

auditor expresses a qualified opinion A. as a result of the specialists findings.(Missed) B. specialist is not independent of the client. C. D. auditor wishes to indicate a division of responsibility. specialists work provides the auditor greater assurance of reliability.

Question 6 / 61
A. Sales invoices represent existing sales. B. All sales have been recorded. C. All sales invoices have been correctly posted to customer accounts.

Question 2 / 61
A. increase inherent risk. B. increase materiality levels. C. decrease substantive testing. decrease planned detection risk.(Missed) D.

Debit entries in the accounts receivable D. master file are correctly supported by sales invoices.(Missed)

Question 7 / 61

A. Tests of details of balances B. Substantive tests of transactions C. Tests of controls(Missed) D. Tests of trends and ratios

Question 3 / 61
A. decrease detection risk.(Missed) B. increase materiality levels. C. decrease substantive testing. D. increase inherent risk.

Question 8 / 61 A. B. C. D. confirming the existence of the related parties. verifying the valuation of related party transactions. evaluating the disclosure of the related party transactions.(Missed) ascertaining the rights and obligations of the related parties.

Question 4 / 61
A. increase.(Missed)

Question 9 / 61

A.
B. remain the same. C. decrease. D. become indeterminate.

evaluate the effectiveness of the entitys internal controls. identify transactions and account balances where inherent risk is at the maximum.

B.

Question 5 / 61
A. B. Aged trial balance of accounts receivable is prepared. Credit memoranda are prenumbered and all numbers are accounted for.

indicate whether materiality thresholds for C. planning and evaluation purposes are sufficiently high. determine the acceptable level of detection risk for financial statement assertions.(Missed) Question 10 / 61 D.
A. material weaknesses of internal control. B. C. D. the predictability of financial data from individual transactions. the various assertions that are embodied in the financial statements. areas that may represent specific risks relevant to the audit.(Missed)

A reconciliation of the trial balance of C. customers accounts with the general ledger control is prepared periodically. Receiving reports are prepared for all D. materials received and such reports are account for on a regular basis.(Missed)

Question 11 / 61
A. B. C. D. sample exception rate plus the allowance for sampling risk equals the tolerable rate. sample exception rate is less than the expected rate of exception used in planning the sample. tolerable rate less the allowance for sampling risk exceeds the sample exception rate. sample exception rate plus the allowance for sampling risk exceeds the tolerable rate.(Missed)

Question 12 / 61
A. a test of details of balances. B. a test of control.(Missed) C. a substantive test of transactions. D. both a test of control and a substantive test of transactions.

Question 13 / 61
A. 5% risk. B. risk greater than 5%. C. risk less than 5%.(Missed) D. This cannot be determined from the information provided.

Question 14 / 61
A. B. C. D. All sales invoices are checked as to all details after their preparation.(Missed) Differences reported by customers are satisfactorily investigated. Statistical sales data are compiled and reconciled with recorded sales. All sales invoices are compared with the customers purchase orders.

Question 15 / 61
A. $ 10,000(Missed) B. $ 15,000 C. $ 20,000 D. $ 25,000