03 Sep ACCT 555 MIDTERM PART 1-NEW SPRING…GUARANTEED A+ ANSWERS! GOOD LUCK
1. (TCO F) Which of the following procedures should an auditor generally perform
regarding subsequent events?
2. (TCO A) An auditor reads the letter of transmittal accompanying a county’s
comprehensive annual financial report and identifies a material inconsistency with
the financial statements. The auditor determines that the financial statements do
not require revision. Which of the following actions should the auditor take?
3. (TCO F) An auditor’s independence is considered impaired if the auditor has:
4. (TCO B) When an independent CPA is associated with the financial statements of a
publicly held entity but has not audited or reviewed such statements, the
appropriate form of report to be issued must include a(an):
5. (TCO F) Which is not a characteristic of the reliability of evidence?
6. (TCO C) According to PCAOB standards, the nature and extent of required planning
activities for an issuer audit are influenced by all of the following factors,
except for:
7. (TCO F) Analytical procedures must be used during which phase(s) of the audit?
Test of controls OR planning OR completion
8. (TCO F) In a financial statement audit, inherent risk is evaluated to help an
auditor assess which of the following?
9. TCO F) The primary purpose of performing analytical procedures in the planning
phase of an audit is to
10. (TCO G) The most widely used profitability ratio is
11. (TCO G) Which ratio is best used to assess a company’s ability to meet its
long-term debt obligations?
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