Question

6. While performing an audit, the auditor should allow for some misstatement of lessor value than the

       assessed materiality level so in total the misstatements might not result in a material misstatement

       to the financial statements. In order to do so, the auditor sets which of the following lower than the

       materiality level (s)?

      a. Test of controls.

      b. Difference in comparison of current year amounts to prior-year amounts.

      c. Performance materiality.

      d. Sampling Unit.

                   See CPA Exam Review [try Mod 2 #42]

7. Per auditing standards, if the outside CPA firm plans to use internal auditors on the financial audit,

      the outside auditor must consider whether the internal auditor is:

      a. competent and involved

      b. competent and objective

      c. educated    and involved

    d. educated    and objective

8. One type of substantive procedures is called:

      a. Analytical review

      b. Financial review

      c. Test of accounts

      d. Test of deletions

9. As “materiality goes down”, the amount of desired audit evidence:

      a. Goes down.

      b. Goes up.

      c. Stays the same.

10. Materiality factors include:

      a. Qualitative considerations and cost considerations

      b. Qualitative considerations and Quantitative considerations

      c. Judgmental considerations and cost considerations

      d. Judgmental considerations and Quantitative considerations

Answer 1

Page 1 Given data that 6) While peg fog ming an Audit the Audit 09 Should Allow for some Mistatment of lessey Value than the Amesed Malegial level so in total the Misatements might not gesult in a mategial mistatment to the financial statment . In 09desy to do 80 the Auditos sets lowest than the c) Pestfosjmance Matesiality 7. pesy Auditing Standasdo , if the outside CPA fisum plans to use Internal Auditoops on the financial Audit The outside Auditoy must consides whether the Intesjnal Auditor is b) Competent and objective 8. One type of substantive poocedusjes is called d) Test of detail deletions

page 2 9. no "mategiality goes down" the amount of desisled Audit Euidence : a) Goes down 10. Mategjiality factose include b) Qualitative considerations and quantitative Considegations please hit thumbs up button if it helps-