Fraudulent financial auditor’s defenses

  1. Which of the following      auditor’s defenses usually means non reliance on the financial statements      by the user?
  2. The expectation gap:
  3. The standard of due care      to which the auditor is expected to adhere to in the performance of the      audit is referred to as the:
  4. The assessment against a      defendant of that portion of the damage caused by the defendant’s      negligence is called:
  5. The preferred defense in      third party suits is:
  6. In connection with the      audit of financial statements, an independent auditor could be responsible      for failure to detect a material fraud if:
  7. Which of the following      would most likely be deemed a direct-effect illegal act?
  8. Fraudulent financial      reporting is most likely to be committed by whom?
  9. Which of the following      is the auditor least likely to do when aware of an illegal act?
  10. The most important      general ledger account included in and affecting several cycles is the:
  11. “The auditor should not      assume that management is dishonest, but the possibility of dishonesty      must be considered.” This is an example of:
  12. Which of the following      statements is the most correct regarding errors and fraud?
  13. Audit documents:
  14. When the auditor uses      tracing as an audit procedure for tests of transactions she is primarily      concerned with which audit objective?
  15. Which of the following      is not one of the four decisions about what evidence to      gather and how much of it to accumulate?
  16. Given the economic and      time constraints in which auditors can collect evidence about management      assertions about the financial statements, the auditor normally gathers      evidence that is:
  17. ________ is the      auditor’s examination of the client’s documents and records to      substantiate that the information is included in the financial statements.
  18. When practical and      reasonable, U.S. auditing standards require the confirmation of:
  19. Which of the following      is not a characteristic of the reliability of evidence?
  20. An auditor should      examine minutes of the board of directors’ meetings:
  21. One of the purposes of      an engagement letter is to avoid misunderstandings with the client. This      is important for:
  22. Which of the following      best describes the corporate minutes of an entity?
  23. Written communication      that the auditor will provide reasonable assurance for the detection of      fraud is found in:
  24. The audit team gathers      information about a new client’s business and industry in order to obtain:
  25. Related party:

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