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ACCT 460 AUDIT Final Exam Questions With Correct Answers 2024
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ACCT 460 AUDIT Final Exam Questions With Correct Answers 2024
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ACCT 460 AUDIT Final Exam QuestionsWith Correct Answers 2024
Assessment .of .control .risk .- .correct .answer.a .measure .of .the .auditor's .expectations .that
.internal .controls .will .neither .prevent .material .misstatement .from .occurring .nor .detect .and
.correct .them .if .they .have .occurred
Auditing .through .the .computer .- .correct .answer.auditing .by .testing .automated .internal
.controls .and .account .balances .electronically, .generally .because .effective .general
.controls .exist
Compensating .control .- .correct .answer.a .control .elsewhere .in .the .system .that .offsets .the
.absence .of .a .key .control
Control .deficiency .- .correct .answer.a .deficiency .in .the .design .or .operation .of .controls .that
.does .not .permit .company .personnel .to .prevent .or .detect .and .correct .misstatements .on .a
.timely .basis
Control .risk .matrix .- .correct .answer.a .methodology .used .to .help .the .auditor .assess
.control .risk .by .matching .key .internal .controls .and .internal .control .deficiencies .with
.transaction-related .audit .objectives
Embedded .audit .module .approach .- .correct .answer.a .method .of .auditing .transactions
.processed .by .IT .whereby .the .auditor .embeds .a .module .in .the .client's .application
.software .to .identify .transactions .with .characteristics .that .are .of .interest .to .the .auditor; .the
.auditor .is .then .able .to .analyze .these .transactions .on .a .real-time, .continuous .basis .as
.client .transactions .are .processed
Flowchart .- .correct .answer.a .diagrammatic .representation .of .the .client's .documents .and
.records .and .the .sequence .in .which .they .are .processed
Generalized .audit .software .(GAS) .- .correct .answer.computer .programs .used .by .auditors
.that .provide .data .retrieval, .data .manipulation, .and .reporting .capabilities .specifically
.oriented .to .the .needs .of .auditors
Internal .control .questionnaire .- .correct .answer.a .series .of .questions .about .the .controls .in
.each .audit .area .used .as .a .means .of .indicating .to .the .auditor .aspects .of .internal .control
.that .may .be .inadequate
, Key .controls .- .correct .answer.controls .that .are .expected .to .have .the .greatest .effect .on
.meeting .audit .objectives
Management .letter .- .correct .answer.an .optional .letter .written .by .the .auditor .to .a .client's
.management .containing .the .auditor's .recommendations .for .improving .any .aspect .of .the
.client's .business
Material .weakness .- .correct .answer.a .significant .deficiency .in .internal .control .that, .by
.itself .or .in .combination .with .other .significant .deficiencies, .results .in .a .reasonable
.possibility .that .a .material .misstatement .of .the .financial .statements .will .not .be .prevented
.or .detected
Narrative .- .correct .answer.a .written .description .of .a .client's .internal .controls, .including .the
.origin, .processing, .and .disposition .of .documents .and .records, .and .the .relevant .control
.procedures
Parallel .simulation .testing .- .correct .answer.an .audit .testing .approach .that .involves .the
.auditor's .use .of .audit .software, .either .purchased .or .programmed .by .the .auditor, .to
.replicate .some .part .of .a .client's .application .system
Procedures .to .obtain .an .understanding .- .correct .answer.procedures .used .by .the .auditor
.to .gather .evidence .about .the .design .and .implementation .of .specific .controls
Significant .deficiency .- .correct .answer.a .control .deficiency, .or .a .combination .of .control
.deficiencies, .that .is .less .severe .than .a .material .weakness, .but .important .enough .to .merit
.attention .by .those .responsible .for .oversight .of .the .company's .financial .reporting
Test .data .approach .- .correct .answer.a .method .of .auditing .an .IT .system .that .uses .the
.auditor's .test .data .to .determine .whether .the .clients .computer .program .correctly
.processes .valid .and .invalid .transactions
Tests .of .controls .- .correct .answer.audit .procedures .to .test .the .operating .effectiveness .of
.controls .in .support .of .reduced .assessed .control .risk
Walkthrough .- .correct .answer.the .tracing .of .selected .transactions .through .the .accounting
.system .to .determine .that .controls .are .in .place
Analytical .procedures .- .correct .answer.evaluations .of .financial .information .through
.analysis .of .plausible .relationships .among .financial .and .non .financial .data
Evidence .mix .- .correct .answer.the .combination .of .the .types .of .tests .to .obtain .sufficient
.appropriate .evidence .for .a .cycle; .there .are .likely .to .be .variations .in .the .mix .from .cycle .to
.cycle .depending .on .the .circumstances .of .the .audit
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