ACT 405 Auditing-Spring 2023- Test 1 35) Which of the following is not.pdf
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ACT 405 Auditing-Spring 2023; Test 1 35) Which of the following is not an important coesideration in an auditor's evaluation of A) The specific business risk an eetity faces that may result in financial statement errors an entity's business riak? B) Business risk factors that impact the abity of the entity to be profitable and survive. and fraud. C) Audit standaras include mpay entcy businesi tisk factors that identify circumstances: that increase the Mkelhood of materal misatatements D) Audin standards require the audtoe to evalunte the entity's busineis risk in order to provide suesestions to ingrove the enthy b proficabily. 39 Which of the following circunstaners mort lit ely would capse an auditor to believe that magerial misstafements may euist in an entity 's fesatcial st atements? A) Accounts receivabie confirmation requests y ledd significantly fever responses than expected. B) Audit trails of computer-gentratied trancactions exist only for a short time. C) The chief financial offices does not sige the management representation letter until the last day of the auditor' s fieldwork. D) Management consults with other aceountants abeut significant accounting matters. 491 The primary responsibility for preuteting fraud in an erganization lies with: A) the audit committee of the boued of directors. B) the internal audit function. C) the external auditoi. D) the organiration's management 41) All of the following cepresent an increased opportunity for manazement to commit. fraud except: A) significant related party transactions. B) the auditor's relationship with managtment is strained. C) managensent is dominated by a single persice. D) the finuncial statements include highly subjective estimates. 42.) The auditor can respond to an increased risk of fraud by doing alf of the following: extept: A) evaluating whether the accountine policies selected may be indicative of fraudulent financial reporting through eamingi management. B) assigning more experiented perysennel to the audit. C) increasing detection risk. D) taking steps to obtain more reliable evidence..
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trinitrotoluene
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centuries, evolving its structure over time and space. In the present era, these changes have
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9
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