SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Auditing Vocab
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A subcommittee of the board of directors that is responsible for the financial reporting and disclosure process.
Business risks
Audit committee
Inquiry
Unqualified opinion
2. Basic unit containing the elements of the population to be sampled
Inspections of tangible assets
Internal Control
Sampling unit
Desired confidence level
3. Existing condition or set of circumstances involving uncertainty about a possible loss that will ultimately be resolved when some future event occurs or fails to occur.
Confirmation
Nonstatistical sampling
Contingent liability
Application controls
4. The process of correcting a material weakness as part of management's assessment of the effectiveness of ICFR
Remediation
Audit Evidence
Audit procedures
Analytical procedures
5. A range of acceptable amounts or a precisely determined point estimate for an estimate (eg. uncollectible receivables) - if that is a better estimate than any other amount
Subsequent event
Closest reasonable estimate
Audit strategy
Computer-assisted audit techniques (CAATs)
6. A management letter is a report to management containing the auditors' recommendations for correcting any deficiencies disclosed by the auditors' consideration of internal control. The management letter also provides recommendations on where the comp
Representation letter
Management letter
Statistical sampling
Audit sampling
7. Controls that apply to the processing of specific computer applications and are part of the computer programs used in the accounting system.
Application controls
Sampling unit
Engagement quality review
General controls
8. A letter that formalizes the contract between the auditor and the client and outlines the responsibilities of both parties.
Other comprehensive basis of accounting
Sampling risk
Fraud
Engagement letter
9. Consulting services that may provide advice and assistance concerning an entity's organization - personnel - finances - operations - systems - or other activities
Electronic data interchange
Information asymmetry
Attest
Management advisory services
10. The risk that material misstatements that could occur will not be prevented - or detected and corrected - by internal controls.
Remediation
Control risk
Sampling risk
Generally accepted accounting principles (GAAP)
11. Specific acts performed by the auditor in gathering evidence to determine if specific assertions are met.
Closest reasonable estimate
Audit procedures
Inspections of records and documents
ateriality
12. Ten broad statements guiding the conduct of financial statement auditing.
Confirmation
Generally accepted auditing standards (GAAS)
Other comprehensive basis of accounting
Material Weakness
13. Controls that relate to the overall information processing environment and have a pervasive effect on the entity's computer operations.
Blank or zero-balance confirmations
Errors
Tolerable deviation rate
General controls
14. Audit sampling that relies on the auditor's judgment to determine sample size - select the sample - and/or evaluate the results for the purpose of reaching a conclusion about the population.
Audit evidence
Nonstatistical sampling
Relevance of evidence
Audit sampling
15. Controls that have a pervasive effect on the entity's system of internal control such as controls related to the control environment; controls over management override; the company's risk assessment process; centralized processing and controls - incl
Control deficiency
Nonsampling risk
Working papers
Entity-level controls
16. The amount of the planning materiality that is allocated to a financial statement account.
Internal control over financial reporting
Tolerable misstatement
Expected misstatement
Attribute sampling
17. Examination of internal or external records or documents that are in paper form - electronic form - or other media.
Control activities
Tests of details of account balances and disclosures
Inspections of records and documents
Monitoring of controlsa
18. An objective for ICFR generally relates to a relevant financial statement assertion and states a criterion for evaluating whether the company's control procedures in a specific area provide reasonable assurance that a misstatement or omission in that
Qualified opinion
Risk of material misstatement
Control objective
Independence
19. The amount of misstatement that the auditor believes exists in the population.
Expected misstatement
Monetary unit sampling
Inspections of tangible assets
Working papers
20. A deficiency - or a combination of deficiencies - in internal control that is less severe than a material weakness - yet important enough to merit attention by those charged with governance.
Audit committee
Audit procedures
Significant deficiency
Risk of incorrect acceptance
21. Expressed or implied representations by management about information that is reflected in the financial statements. The three sets of assertions related to ending account balances - transactions - and presentation and disclosure.
Financial Statement Assertions
Illegal acts
Audit committee
Positive confirmation
22. The risk that material misstatements that could occur will not be prevented - or detected and corrected - by internal controls.
Control risk
Tests of controls
ositive confirmation
Material Weakness
23. Computer programs that allow auditors to test computer files and databases.
Expected population deviation rate
Computer-assisted audit techniques (CAATs)
Observation
Application controls
24. A process designed by - or under the supervision of - the company's principal executive and principal financial officers - or persons performing similar functions - and effected by the company's board of directors - management - and other personnel -
Analytical procedures
Internal control over financial reporting
Reliability of evidence
Reasonable assurance
25. An organization created to provide professional accounting-related services - including auditing. Usually formed as a proprietorship or as a form of partnership.
Control deficiency
Public accounting firm
Tests of details of account balances and disclosures
Closest reasonable estimate
26. The auditor's plan for the expected conduct - organization - and staffing of the audit.
Walkthrough
Audit strategy
Analytical procedures
Dual dating
27. All the information used by the auditor in arriving at the conclusions on which the audit opinion is based; includes the information contained in the accounting records underlying the financial statements and other information
Tolerable deviation rate
Generally accepted auditing standards
Audit Evidence
Internal control
28. A confirmation request to which the recipient responds only if the amount or information stated is incorrect.
Negative confirmation
Control risk
Material weakness
Classical variables sampling
29. Seeking information of knowledgeable persons - both financial and nonfinancial - throughout the entity or outside the entity.
Material weakness
Inquiry
Audit committee
Misstatement
30. Audit sampling that relies on the auditor's judgment to dewtermine the sample size - select the sample - and/or evaluate the results for the purpose of reaching a conclusion about the population.
Nonstatistical sampling
Control activities
Reliance strategy
Inherent risk
31. The use of normal distribution theory to estimate the dollar amount of misstatement for a class of transactions or an account balance.
Nonsampling risk
Tests of controls
Classical variables sampling
Substantive tests of transactions
32. Standards against which the quality of the auditor's performance is measured.
ositive confirmation
Tolerable misstatement
Generally accepted auditing standards
Errors
33. The risk that the auditor may unknowingly fail to appropriately modify the opinion on materially misstated financial statements.
Classical variables sampling
Audit risk
Assurance Services
Risk of incorrect acceptance
34. An account or disclosure is significant if there is a reasonable possibility that the account or disclosure could contain a misstatement that - individually or when aggregated with others - has a material effect on the financial statements - consider
Observation
Significant account or disclosure
ateriality
Engagement quality review
35. The application of an audit procedure to less than 100 percent of the items within an account or class of transactions for the purpose of evaluating some characteristic of the balance or class.
Internal control
Audit sampling
Observation
Fraud
36. The records of initial entries and supporting records - such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers - journal entries - and other adjustments to the financial statements that are no
Tests of details of account balances and disclosures
Business risks
Accounting records
Material Weakness
37. The total of the projected misstatement plus the allowance for sampling risk.
Business risks
Upper misstatement limit
Assertions
Computer-assisted audit techniques (CAATs)
38. Specific acts performed by the auditor in gathering evidence to determine if specific assertations are being met.
Walkthrough
Reliance strategy
Audit procedures
Integrated audit
39. Papers that document the evidence gathered by auditors to show the work they have done - the methods and procedures they have followed - and the conclusions they have developed in an audit of financial statements or other type of engagement.
Audit sampling
Engagement quality review
Working papers
Analytical procedures
40. A lack of evidence that may preclude the auditor from issuing a clean opinion - usually resulting from an inability to conduct an audit procedure considered necessary.
Scope limitation
Audit sampling
Audit risk
Substantive tests of transactions
41. A state of objectivity in fact and in appearance - including the absence of any significant conflicts of interest.
Independence
General controls
Computer-assisted audit techniques (CAATs)
Sampling unit
42. A risk of material misstatement that is important enough to require special audit consideration.
Control risk
Significant risk
Sampling unit
Representation letter
43. The process of obtaining and evaluation a direct communication from a third party in response to a request for information about a particular item affecting financial statement assertions.
Scope limitation
Confirmation
Financial statement assertions
ositive confirmation
44. The process of obtaining and evaluating direct communication from a third party in response to a request for information about a particular item affecting financial statement assertions.
Dual dating
Confirmation
Integrated audit
Control deficiency
45. The concept that the manager generally has more information about the true financial position and results of operations of the entity than the absentee owner does.
Other information
Information asymmetry
Scope limitation
Relevance of evidence
46. Process of watching a process or procedure being performed by others.
Attest
Observation
Risk of incorrect acceptance
Auditing
47. An audit inquiry sent to the client's attorneys in order to obtain or corroborate information about litifation - claims - and assessments.
Errors
Legal letter
Nonstatistical sampling
Materiality
48. The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated.
Audit Risk
Representation letter
Nonstatistical sampling
Tests of controls
49. Violations of laws or government regulations.
Application controls
Illegal acts
Representation letter
General controls
50. The uncertainty that results from sampling; the difference between the expected mean of the population and the tolerable deviation or misstatement.
Upper misstatement limit
Allowance for sampling risk
Relevance of evidence
ateriality
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests