9.

The risk associated with a company's survival and profitability is referred to as:
A. Business Risk
B. Information Risk
C. Detection Risk
D. Control Risk
10. An engagement in which a CPA firm arranges for a critical review of its practices
by another CPA firm is referred to as a(n):
A. Peer Review Engagement
B. Quality Control Engagement
C. Quality Assurance Engagement
D. Attestation Engagement
11. Attestation risk is limited to a low level in which of the following engagement(s)?
A. Both examinations and reviews
B. Examinations, but not reviews
C. Reviews, but not examinations
D. Neither examinations nor reviews
12. to as:
A. Business Risk
B. Information Risk
C. Detection Risk
D. Control Risk
13. An engagement in which a CPA firm arranges for a critical review of its practices
by another CPA firm is referred to as a(n):
A. Peer Review Engagement
B. Quality Control Engagement
C. Quality Assurance Engagement
D. Attestation Engagement
14. Attestation risk is limited to a low level in which of the following engagement(s)?
A. Both examinations and reviews
B. Examinations, but not reviews
C. Reviews, but not examinations
D. Neither examinations nor reviews

236. The most significant audit step in substantiating additions to the office furniture
account balance is
a. examination of vendors' invoices and receiving reports for current year's
acquisitions.
b. review of transactions near the balance sheet date for proper period cutoff.
c. calculation of ratio of depreciation expense to gross office equipment cost.
d. comparison to prior year's acquisitions.

238. Instead of taking a physical inventory count on the balance sheet date, the client
may take physical counts prior to the year end if internal controls are adequate
and
a. computerized records of perpetual inventory are maintained.
b. inventory is slow moving.
c. CBIS error reports are generated for missing pre-numbered inventory
tickets.
d. obsolete inventory items are segregated and excluded.

239. Which of the following matters do auditors need not communicate to the audit
committee of a public company?
A. All critical accounting policies
B. Compensation arrangements related to the chief executive officer
 C. Schedule of unadjusted differences
D. Management letter comments

240. Analytical procedures are required to be performed

during the: A. planning and substantive test stages.
B. substantive test and overall
review stages. C. planning and
overall review stages.
D. planning stage only.

241. Which of the following factors would least influence an auditor‟s consideration
of the reliability of data for purposes of analytical procedures?
A. Whether the data are processed in a computer system or in a manual
accounting system B. Whether sources within the entity are independent of
those who are responsible for the
amount being audited
C. Whether the data are subjected to audit testing in the current or prior year
D. Whether the data are obtained from independent sources outside the entity or
from sources within the entity