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Topics: Audit, Auditing, Auditor's report Pages: 682 (95885 words) Published: January 21, 2015
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award:

1.00 point

TB 01-01 Which of the following best describes the main rea... Which of the following best describes the main reason that independent auditors report on a company's financial statements? Management fraud may exist within the company and it is likely that the independent auditors will detect it.



Users of financial statements need confidence in the numbers they base their decisions on. Misstated account balances may be corrected as the result of the independent audit work. The accounting system from which the financial statements are derived may have a poorly designed system of internal control.

Multiple Choice

TB 01-01 Which of the following best
describes the main rea...

award:

1.00 point

TB 01-02 Reducing information risk means the same as ______... Reducing information risk means the same as ________.
serving the public interest
monitoring economic activities



improving the credibility of information
ensuring generally accepted accounting principles are used to measure profit

Multiple Choice

TB 01-02 Reducing information risk
means the same as ______...

award:

1.00 point

TB 01-03 The underlying conditions that create demand by us... The underlying conditions that create demand by users for reliable financial information include the fact that ________. more reliable information will allow investors to calculate the rate of return on their investment



users are separated from accounting records by distance and time governments rely on such information to create tax policies
there is a need for the expression of an opinion as to the fairness of financial statements

Multiple Choice

TB 01-03 The underlying conditions
that create demand by us...

23/08/2013 12:38 AM

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award:

1.00 point

TB 01-04 The auditee is the person or company ________.
The auditee is the person or company ________.
who will use the audited information
who performs an audit
who pays the audit fee



whose information is being audited

Multiple Choice

TB 01-04 The auditee is the person
or company ________.

award:

1.00 point

TB 01-05 Professional judgment is a widely used concept in ... Professional judgment is a widely used concept in accounting and auditing. How is it defined in the audit standards? There is no definition of professional judgment in the auditing standards. Professional judgment includes consideration of key principles and concepts of disciplines underlying the professional standards, such as economics, psychology, law, finance, statistics and philosophy.



Professional judgment means reaching a complex decision by incorporating auditing standards, accounting standards, and rules of professional ethics in a coherent manner. Professional judgment involves specialized concepts and language integrating several disciplines in order to provide appropriate justification for audit decisions.

Multiple Choice

TB 01-05 Professional judgment is a
widely used concept in ...

award:

1.00 point

TB 01-06 What is the primary role and responsibility of ind... What is the primary role and responsibility of independent external auditors? to prepare a company's annual financial statements and notes.



to perform an audit and provide an opinion on the financial statements of a company. to provide business consulting advice to audit clients.
to obtain an understanding of a client's...
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