TY, DAVID JESSE's Quiz History_ Quiz 1 - Preliminary Audit and Assurance Concepts.pdf

9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Quiz 1 - Preliminary Audit and Assurance Concepts Results for TY, DAVID JESSE Score for this quiz: 64 out of 75 Submitted Sep 10 at 2:29pm This attempt took 43 minu...

9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Quiz 1 - Preliminary Audit and Assurance Concepts Results for TY, DAVID JESSE Score for this quiz: 64 out of 75 Submitted Sep 10 at 2:29pm This attempt took 43 minutes.  Question 1 1 / 1 pts The study of business operations for the purpose of making recommendations about the efficient use of resources, effective achievement of business objectives, and compliance with company policies is referred to as financial auditing. compliance auditing. Correct! operational auditing. environmental auditing.  Question 2 1 / 1 pts Which of the following is the essential purpose of the audit function? Detection of fraud. Examination of individual transactions to certify as to their validity. Assurance of the consistent application of correct accounting procedures. Correct! Determination of whether the client's financial statement assertions are fairly stated.  Question 3 1 / 1 pts The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations. The auditor reviewed all work orders that were capitalized as part of the equipment costs. Which of the following is the ASB assertion about classes of transactions and events and related disclosures most closely related to the auditor's testing? Accuracy Occurrence Correct! Classification Completeness https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 1/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts  Question 4 1 / 1 pts Which of the following best describes the primary role and responsibility of independent external auditor? Produce a company's annual financial statements and notes. Provide business consulting advice to audit clients. Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies. Correct! Express an opinion on the fairness of a company's annual financial statements and footnotes.  Question 5 1 / 1 pts Which of the following best describes the main reason independent auditors report on management's financial statements? The management that prepares the statements may have a poorly designed system of internal control. Misstated account balances may be corrected as the result of the independent audit work. Management fraud may exist and it is likely to be detected by independent auditors. Correct! The management that prepares the statements and the persons who use the statements may have conflicting interests.  Question 6 1 / 1 pts The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of the auditor's evaluation of the audited company's internal control. Correct! the applicable financial reporting framework (i.e., GAAP in the United States). generally accepted auditing standards, which include the concept of materiality. quality control.  Question 7 1 / 1 pts Assurance services involve all of the following, except relevance as well as the reliability of information. nonfinancial information as well as traditional financial statements. Correct! https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 2/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts providing absolute rather than reasonable assurance. electronic databases as well as printed reports.  Question 8 1 / 1 pts Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of Correct! professional skepticism. independent integrity. objective judgment. impartial conservatism.  Question 9 1 / 1 pts Which of the following best describes assurance services? Independent professional services that report on specific written management assertions. Correct! Independent professional services that improve the quality of information for decision makers. Independent professional services that improve the operations of the client. Independent professional services that report on the client's financial statements.  Question 10 1 / 1 pts Control risk is Correct! the probability that a material misstatement could not be prevented or detected by the entity's internal control policies and procedures. the risk that auditors will not properly control the staff on the audit engagement. the risk that auditors will not be able to complete the audit on a timely basis. the probability that a material misstatement could occur and not be detected by auditors' procedures.  Question 11 1 / 1 pts The responsibilities principle under generally accepted auditing standards does not include which of the following? Due care. Independent attitude. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 3/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Competence and capabilities. Correct! Planning and supervision.  Question 12 1 / 1 pts The risk an entity will fail to meet its objectives is referred to as assurance risk. Correct! business risk. audit risk. information risk.  Question 13 1 / 1 pts Which of the following types of auditors' reports does not require additional information to support the opinion? Adverse opinion. Qualified opinion. Correct! Unmodified opinion. Disclaimer of opinion.  Question 14 1 / 1 pts Which of the following presumptions does not relate to the reliability of audit evidence? The independent auditors' direct personal knowledge, obtained through observation and inspection, is of higher quality than information obtained indirectly. Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity. Correct! The auditors' opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. The more effective the client's internal control, the more assurance it provides about the accounting data and financial statements.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 4/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 15 1 / 1 pts Audit evidence is usually considered sufficient when Correct! there is enough quantity to afford a reasonable basis for an opinion on financial statements. it has been obtained through random selection methods. it is reliable. it has the qualities of being relevant, objective, and free from unknown bias.  Question 16 1 / 1 pts Which of the following is not considered a type of audit evidence? Physical observation. Verbal statements made by client personnel. Correct! The entity's trial balance. Auditors' calculations.  Question 17 1 / 1 pts Auditors try to achieve independence in appearance in order to: Correct! maintain public confidence in the profession. become independent in fact. comply with the responsibilities principle. maintain an unbiased mental attitude.  Question 18 1 / 1 pts The preparation of an audit plan prior to the beginning of field work is appropriately considered documentation of Correct! planning. information evaluation. supervision. quality assurance.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 5/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 19 1 / 1 pts Which of the following procedures would provide the most reliable audit evidence? Correct! Inspection of bank statements obtained directly from the client's financial institution. Inspection of pre-numbered client shipping documents. Analytical procedures performed by auditors on the client's trial balance. Inquiries of the client's accounting staff held in private.  Question 20 1 / 1 pts A vendor's invoice received and held by the client would be considered what type of evidence? Written representation. Internal. External. Correct! External–internal.  Question 21 1 / 1 pts Which of the following statements is generally correct about the appropriateness of audit evidence? Client accounting data alone may be considered sufficient appropriate audit evidence to issue an unmodified opinion on client financial statements. Appropriateness of audit evidence refers to the amount of corroborative evidence to be obtained. To be reliable, audit evidence must be either valid or relevant, but need not be both. Correct! Auditors' direct personal knowledge, obtained through observation and inspection, is of higher quality than information obtained indirectly from independent outside sources.  Question 22 1 / 1 pts Internal evidence originates outside of the client's system but has been received and processed by the client. consists of representations made by the client's officers, directors, owners, and employees. Correct! consists of documents that are produced, used, and stored within the client's information system. is obtained directly from third parties independent of the client. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 6/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts  Question 23 1 / 1 pts The probability that the information circulated by a company will be false or misleading is referred to as business risk. assurance risk. audit risk. Correct! information risk.  Question 24 1 / 1 pts Which of the following presumptions is correct about the reliability of audit evidence? Correct! An effective system of internal control provides more assurance about the reliability of audit evidence. Reliability of audit evidence refers to the amount of corroborative evidence obtained. Information obtained indirectly from outside sources is the most reliable form of audit evidence. To be reliable, audit evidence should be convincing rather than persuasive.  Question 25 0 / 1 pts The auditors' responsibility to express an opinion on the financial statements is Correct Answer explicitly represented in the Basis for Opinion section of the auditors' standard report. implicitly represented in the auditors' standard report. explicitly represented in the Critical Audit Matters section of the auditors' standard report. You Answered explicitly represented in the Opinion on the Financial Statements section of the auditors' standard report.  Question 26 1 / 1 pts Which of the following represent audit quality guides that remain stable over time and are applicable for all audits? Due care. System of quality control. Correct! Auditing standards. Auditing procedures. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 7/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts  Question 27 1 / 1 pts Which of the following statements is not true with respect to the evidence that would be gathered when assessments of control risk are high? Auditors would be required to rely on external (rather than internal) forms of evidence. Correct! Auditors would be required to perform procedures at interim periods, rather than at year end. Auditors would be required to confirm a larger number of customer accounts receivable balances. Auditors would be required to obtain more evidence through direct personal observation.  Question 28 1 / 1 pts Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors obtain expertise in their client's industry as they are conducting the audit examination. Correct! Auditors are directly involved with a client manager in a strategic decision-making capacity. Auditors fail to document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of prudent auditors, but not expert auditors.  Question 29 1 / 1 pts As it relates to audit evidence, appropriateness refers to the Correct! quality of evidence gathered. originality of evidence gathered. quantity of evidence gathered. timeliness of evidence gathered.  Question 30 1 / 1 pts Which of the following information would not be included in the auditors' standard report? The names of the financial statements audited. Correct! An indication that all necessary disclosures have been presented. A description of the nature of an audit. An opinion on the entity's financial statements.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 8/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 31 1 / 1 pts The primary purpose of the auditors' study of internal control for a nonissuer is: to report on internal control as required by Auditing Standard No. 5. Correct! to determine the nature, timing, and extent of further audit procedures. to provide constructive suggestions to the client for improving its internal control. to identify and detect fraud and irregularities perpetrated by client personnel.  Question 32 1 / 1 pts Which of the following statements is true with respect to the quality of audit evidence? Evidence is considered of higher quality when gathered prior to year-end than following year-end. In evaluating quality, sufficiency of evidence is of greater importance than appropriateness of evidence. Correct! Evidence obtained under environments of stronger internal control is of higher quality than evidence obtained under environments of weaker internal control. Quality is related to the relevance of evidence, but not the reliability of evidence.  Question 33 1 / 1 pts Which of the following concepts is least related to the risk of material misstatement? Correct! Detection risk. Materiality. Inherent risk. Control risk.  Question 34 1 / 1 pts Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the ASB assertions about account balances and related disclosures of rights and obligations. completeness. existence. Correct! valuation. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 9/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts presentation.  Question 35 1 / 1 pts Which of the following statements describes an appropriate relationship with respect to the reliability of audit evidence? Evidence drawn from a document prepared by the client is more reliable than evidence drawn from a document prepared by an external party that is forwarded to the auditor by the client. Correct! A bank confirmation received directly by the auditor is more reliable than a bank confirmation initially received by the client and forwarded to the auditor. Verbal inquiries received from the client regarding sales made to customers are more reliable than sales invoices prepared by the client for its customers. Receiving confirmation from third parties as to the existence of securities is more reliable than the auditors' personal inspection of those securities.  Question 36 1 / 1 pts Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? The entity has no formal written code of conduct. Procedures requiring separation of duties are subject to management override. Management fails to modify prescribed controls for changes in conditions. Correct! The integrity of entity's management is suspect.  Question 37 1 / 1 pts Before accepting an engagement to audit a new client, an auditor is required to: discuss the management representation letter with the prospective client's audit committee. Correct! make inquiries of the predecessor auditor after obtaining the consent of the prospective client. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. obtain the prospective client's signature to the engagement letter.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 10/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 38 1 / 1 pts Which of the following statements is most accurate regarding sufficient and appropriate documentation? If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers. Accounting estimates are not considered sufficient and appropriate documentation. Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least five years. Correct! Sufficient and appropriate documentation should include evidence that the audit working papers have been reviewed.  Question 39 1 / 1 pts When applying analytical procedures during an audit, which of the following is the best approach for developing expectations? Considering unaudited account balances and ratios to calculate what adjusted balances should be. Correct! Comparing current-year account balances to balances of one or more comparable periods. Considering the pattern of several unusual changes without trying to explain what caused them. Comparing client data with client-determined expected results to reduce detailed tests of account balances.  Question 40 1 / 1 pts Which of the following explanations best describes why an auditor may decide to reduce tests of details for a particular audit objective? The audit is being performed soon after the balance sheet date. There were many transactions posted to the account during the period. Correct! Analytical procedures have revealed no unusual or unexpected results. Audit staff are experienced in performing the planned procedures.  Question 41 1 / 1 pts Which of the following steps should an auditor perform first to determine the existence of related parties? Correct! Request a list of related parties from management. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 11/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Review the company's business structure. Review proxy and other materials filed with the SEC. Examine invoices, contracts, and purchasing orders.  Question 42 1 / 1 pts Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm performing an initial audit of an issuer and the issuer's audit committee? Prior to accepting the engagement, the firm must orally affirm its independence to the audit committee with all members present. The firm must address all independence impairment issues on the date of the audit opinion. Communications related to independence may occur in any form prior to issuance of the financial statements. Correct! Prior to accepting the engagement, the firm should describe in writing all relationships that, as of the date of the communication, may reasonably be thought to bear on independence.  Question 43 1 / 1 pts Before accepting an engagement to audit a new client, a CPA is required to obtain: the prospective client's signature to a written engagement letter. an assessment of fraud risk factors likely to cause material misstatements. Correct! the prospective client's consent to make inquiries of the predecessor, if any. an understanding of the prospective client's industry and business.  Question 44 0 / 1 pts When assessing internal auditors' objectivity, an independent auditor should: review the internal auditors' reports to determine that their conclusions are consistent with the work performed. verify that the internal auditors' assessment of control risk is comparable to the independent auditor's assessment. You Answered evaluate the quality of the internal auditors' working paper documentation and their recent audit recommendations. Correct Answer consider the policies that prohibit the internal auditors from auditing areas where they were recently assigned.  Question 45 1 / 1 pts https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 12/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts The underlying conditions that create demand by users for reliable information include all of the following, except transactions are numerous and complex. decisions are time-sensitive. Correct! users lack professional skepticism. financial decisions are important to investors and users. users are separated from accounting records by distance and time.  Question 46 1 / 1 pts Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit? Recalculate the prior year's accruals and deferrals. Perform cutoff tests of cash receipts and disbursements. Make inquiries of the client's lawyer concerning pending litigation. Correct! Compare financial information with nonfinancial operating data.  Question 47 1 / 1 pts Which of the following matters does an auditor usually include in the engagement letter? Correct! Arrangements regarding fees and billing. Identification of working capital deficiencies. Analytical procedures that the auditor plans to perform. Indications of negative cash flows from operating activities.  Question 48 1 / 1 pts Which of the following factors should an external auditor obtain updated information about when assessing an internal auditor's competence? Whether the board of directors, audit committee, or owner-manager oversees employment decisions related to the internal auditor. The reporting status of the internal auditor within the organization. Correct! The educational level and professional experiences of the internal auditor. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 13/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Whether policies prohibit the internal auditor from auditing areas where relatives are employed.  Question 49 1 / 1 pts Which of the following factors most likely would cause an auditor not to accept a new audit engagement? An inadequate understanding of the entity's internal controls. The close proximity to the end of the entity's fiscal year. Correct! Concluding that the entity's management probably lacks integrity. The inability to perform preliminary analytical procedures before assessing control risk.  Question 50 0 / 1 pts The auditor is not required to ask the predecessor auditor about: Correct Answer the fees charged for the previous audit. facts that might bear on the integrity of management. You Answered the predecessor's understanding about the reasons for the change of auditors. disagreements the predecessor may have had with management about accounting principles and audit procedures.  Question 51 1 / 1 pts Audit documentation does not normally include the: record of the procedures performed. Correct! industry accounting guides. specific assertions under audit. decisions made in the course of the audit.  Question 52 1 / 1 pts Which of the following provides the best method of obtaining an understanding of a continuing client's business for planning an audit? Reading specialized industry journals. Performing tests of details of transactions and balances. Correct! Reviewing prior year audit documentation and the permanent file for the client. https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 14/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Reevaluating the client's internal control environment.  Question 53 1 / 1 pts Which of the following procedures would an auditor most likely perform in planning a financial statement audit? Examining computer-generated exception reports to verify the effectiveness of internal controls. Inquiring of the client's legal counsel concerning pending litigation. Searching for unauthorized transactions that may aid in detecting unrecorded liabilities. Correct! Comparing the financial statements to anticipated results.  Question 54 1 / 1 pts The performance principle would include all of the following except: the auditors' evaluation of the risk of material misstatement. Correct! the auditors' evaluation of independence with respect to their clients. the auditors' determination of the nature, timing, and extent of further audit procedures. the auditors' determination of materiality levels.  Question 55 0 / 1 pts Which of the following is most closely associated with the responsibilities principle? Qualified audit opinion. You Answered Planning. Risk of material misstatement. Correct Answer Due care.  Question 56 0 / 1 pts An attestation engagement is one in which a CPA is engaged to Correct Answer issue, or does issue, a report on subject matter or an assertion about the subject matter that is the responsibility of another party. You Answered https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 15/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts testify as an expert witness in accounting, auditing, or tax matters, given certain stipulated facts. assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance. provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.  Question 57 0 / 1 pts Which of the following would normally be considered earliest in the audit examination? Correct Answer Determination of materiality levels for use during the audit. You Answered Consideration of the ability of the entity's internal control to prevent or detect errors. Preparation of a written audit plan. Evaluation of the type of audit opinion to be issued, based on the auditor's findings.  Question 58 0 / 1 pts The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as: professional judgment. You Answered due care. independence in appearance. Correct Answer professional skepticism.  Question 59 1 / 1 pts Which of the following is least related to the concept of independence in appearance? The employment of the auditor's family member in an important position with the client. Correct! The auditors' objectivity and ability to act impartially toward the client. The perceptions of individuals who rely on the financial statements and auditors' opinion on the financial statements. The ownership of a financial interest in a client by the auditor.  Question 60 1 / 1 pts Which of the following is not related to the responsibilities principle? https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 16/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Continuing professional education to ensure that professionals' knowledge keeps pace with changes in the accounting and auditing profession. Correct! Specific auditing procedures designed to determine the effectiveness of the entity's internal control over financial reporting. Firm-wide policies to evaluate the financial and professional relationships of its professionals. The auditors' use of professional judgment throughout the examination.  Question 61 1 / 1 pts A level of performance that would be exercised by reasonable auditors in similar circumstances is referred to as professional skepticism. professional judgment. independence. Correct! due care.  Question 62 1 / 1 pts Which of the following is not true with respect to the concept of reasonable assurance? The nature of many audit procedures is such that they cannot always be relied upon to detect misstatements. Correct! Audit teams should evaluate all transactions and components of an account balance or class of transactions. Auditors should control the overall risk in an audit to an acceptably low level. Reasonable assurance allows for mistakes and misinterpretations by the audit team throughout the examination.  Question 63 1 / 1 pts Which of the following is not true with respect to the auditors' report for an issuer? The opinion assesses the financial statements against an applicable financial reporting framework. Correct! The report provides a detailed listing of major auditing procedures performed during the examination. The report title should contain the word "independent." The report specifically identifies the financial statements and years examined by the auditor.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 17/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 64 1 / 1 pts Which of the following section(s) references the requirement of auditors to be independent? Critical Audit Matters section. Opinion on the Financial Statements section. Opinion on the Financial Statements section and Basis for Opinion section. Correct! Basis for Opinion section.  Question 65 1 / 1 pts Which of the following courses of action is most appropriate if an auditor concludes that there is a high risk of material misstatement? Increase tests of controls. Use smaller, rather than larger, sample sizes. Correct! Select more effective substantive tests. Perform substantive tests as of an interim date.  Question 66 1 / 1 pts Which of the following is a definition of control risk? Correct! The risk that a material misstatement will not be prevented or detected on a timely basis by the client's internal controls The susceptibility of material misstatement assuming there are no related internal control policies or procedures The risk that the auditor will not detect a material misstatement The risk that the auditor's assessment of internal controls will be at less than the maximum level  Question 67 1 / 1 pts In performing an attestation engagement, a CPA typically provides management consulting advice. assesses control risk at a low level. Correct! expresses a conclusion on an assertion about some type of subject matter. supplies litigation support services.  https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 18/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Question 68 1 / 1 pts An independent auditor must have which of the following? A background in many different disciplines Experience in taxation that is sufficient to comply with generally accepted auditing standards A preexisting and well-informed point of view with respect to the audit Correct! Technical training that is adequate to meet the requirements of a professional  Question 69 1 / 1 pts What type of evidence would provide the highest level of assurance in an attestation engagement? Evidence obtained from multiple internal inquiries. Evidence secured solely from within the entity. Correct! Evidence obtained from independent sources. Evidence obtained indirectly.  Question 70 0 / 1 pts Which of the following is an important consideration during the planning of the audit? Correct Answer Performing some of the audit procedures prior to the end of the year under audit You Answered Considering the ability and expertise of the audit team with respect to accounting and auditing issues in the client's industry Considering the impact of tests of controls on the overall assessment of control risk Considering the independence of members of the audit team  Question 71 0 / 1 pts The particular and specialized actions that auditors undertake to obtain evidence in a specific audit engagement are known as You Answered Statements on Auditing Standards. Interpretive Publications. Auditing Standards. Correct Answer https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 19/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts audit procedures.  Question 72 0 / 1 pts The relevant ethical requirements relating to due care, professional skepticism, and professional judgment are responsibilities of the auditor at which stage(s) of the audit? Risk Assessment Audit Evidence A. Yes No B. Yes Yes C. No Yes D. No No Option A You Answered Option C Option D Correct Answer Option B  Question 73 0 / 1 pts Which of the following does not directly relate to an auditor's responsibility for having appropriate competence and capabilities to perform the audit? You Answered Participating in continuing professional education Correct Answer Obtaining reliable documentary evidence Attending on-the-job training Gaining experience through hands-on practice  Question 74 1 / 1 pts What is the term used to identify the risk that the client's financial statements may be materially false and misleading? Risk assessment Business risk Client risk Correct! https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 20/21 9/18/24, 2:15 PM TY, DAVID JESSE's Quiz History: Quiz 1 - Preliminary Audit and Assurance Concepts Information risk  Question 75 1 / 1 pts Which of the following is not a recommendation usually made following the completion of an operational audit? Correct! Attesting to the fairness of the financial statements. Effective achievement of business objectives. Compliance with company policies. Economic and efficient use of resources. Quiz Score: 64 out of 75 https://tip.instructure.com/courses/58018/quizzes/857584/history?version=1 21/21