SOAL PENGAUDITAN 1

1. In a financial statement audit, the auditor obtains a reasonable level of assurance about whether the
financial statements are free of material misstatement in order to express an opinion. In order to obtain
reasonable assurance, the auditor must

(1) have prior experience in the industry in which the audit client operates.

(2) examine all documents available that support the financial statements.

(3) obtain sufficient audit evidence.

(4) test controls around significant transaction cycles.

2. Compliance auditing often extends beyond audits leading to the expression of opinions on the fairness
of financial presentation and includes audits of efficiency, economy, effectiveness, as well as

(1) accuracy.

(2) adherence to specific rules or procedures.

(3) evaluation.

(4) internal control.

3. The Responsibilities principle underlying AICPA auditing standards includes a requirement that

(1) the audit be adequately planned and supervised.

(2) the auditor’s report state whether or not the financial statements conform to generally accepted
accounting principles.

(3) professional judgment be exercised by the auditor.

(4) informative disclosures in the financial statements be reasonably adequate.

4. The Public Company Accounting Oversight Board (PCAOB) has the duty to

(1) select the public accounting firm for the issuer’s annual audit.

(2) establish rules related to the preparation of audit reports for nonissuers.
(3) conduct investigations concerning registered public accounting firms.

(4) conduct disciplinary proceedings for nonpublic accounting firms.

5. An entity changed from the straight-line method to the declining-balance method of depreciation for
all newly acquired assets. This change has no material effect on the current year’s financial statements
but is reasonably certain to have a substantial effect in later years. If the change is disclosed in the notes
to the financial statements, the auditor should issue a report with a(n)

(1) unmodified opinion.

(2) qualified opinion.

(3) unmodified opinion with explanatory paragraph.

(4) qualified opinion with explanatory paragraph regarding consistency.

6. When the financial statements are fairly stated but the auditor concludes there is

substantial doubt whether the client can continue in existence, the auditor should issue a(n)

(1) adverse opinion.

(2) qualified opinion only.

(3) unmodified opinion.

(4) unmodified opinion with explanatory paragraph.

7. An adverse opinion and a disclaimer of opinion

(1) may be used interchangeably.

(2) both require modification of the introductory paragraph.

(3) result in the auditor’s withdrawal from the engagement.

(4) indicate situations in which there are material departures from the standards.

8. An auditor strives to achieve independence in appearance to

(1) comply with auditing standards related to audit performance.

(2) become independent in fact.

(3) maintain public confidence in the profession.

(4) maintain an unbiased mental attitude.

9. The concept of materiality would be least important to an auditor when considering the

(1) adequacy of disclosure of a client’s illegal act.

(2) discovery of weaknesses in a client’s internal control structure.

(3) effects of a direct financial interest in the client on the CPA’s independence.

(4) types of evidence to use in testing accounts receivable.

10. The major reason an independent auditor gathers audit evidence is to

(1) form an opinion on the financial statements.

(2) detect fraud.

(3) evaluate management.

(4) assess control risk.

11. An auditor reviews aged accounts receivable to assess likelihood of collection to sup-port
management’s assertion about account balances of

(1) existence.

(2) completeness.

(3) valuation and allocation.

(4) rights and obligations.

12. An auditor will most likely review an entity’s periodic accounting for the numerical sequence of
shipping documents to ensure all documents are included to support management’s assertion about
classes of transactions of
(1) occurrence.

(2) completeness.

(3) accuracy.

(4) classification.

13. In the audit of accounts payable, an auditor’s procedures will most likely focus pri-marily on
management’s assertion about account balances of

(1) existence.

(2) completeness.

(3) valuation and allocation.

(4) classification and understandability.

14. Which of the following would not be considered to be an analytical procedure?

(1) Estimating payroll expense by multiplying the number of employees by the aver-age hourly wage rate
and the total hours worked.

(2) Projecting the error rate by comparing the results of a statistical sample with the actual population
characteristics.

(3) Computing accounts receivable turnover by dividing credit sales by the average net receivables.

(4) Developing the expected current year sales based on the sales trend of the prior five years.

15. . Which of the following is not a primary purpose of audit documentation?

(1) To coordinate the audit

(2) To assist in preparation of the audit report

(3) To support the financial statements

(4) To provide evidence of the audit work performed

16. According to PCAOB audit standards, audit documentation must be retained for
(1) one year.

(2) three years.

(3) five years.

(4) seven years.

17. Which of the following presumptions is correct about the reliability of audit evidence?

A. Info obtained indirectly form outside sources is the most reliable audit evidence.

B. To be reliable, audit evidence should be convincing rather than merely persuasive

C. Reliability of audit evidence refers to the amount of corroborative evidence obtained

D. Effective internal control provides more assurance about reliability of audit evidence

18. Which one of the following statements is correct concerning the concept of materiality?

(1) Materiality is determined by reference to guidelines established by the AICPA.

(2) Materiality depends only on the dollar amount of an item relative to other items in the financial
statements.

(3) Materiality depends on the nature of an item rather than the dollar amount.

(4) Materiality is a matter of professional judgment.

19. Which of the following procedures would a CPA least likely perform during the plan-ning stage of the
audit?

(1) Determine the timing of testing

(2) Take a tour of the client’s facilities

(3) Perform inquiries of outside legal counsel regarding pending litigation

(4) Determine the effect of information technology on the audit

20. Some account balances, such as those for pensions and leases, are the result of complex calculations.
The susceptibility to material misstatements in these types of accounts is defined as
(1) audit risk.

(2) detection risk.

(3) inherent risk.

(4) sampling risk.

21. Which of the following does not increase the need for sufficient appropriate audit evidence?

(1) A lower acceptable level of detection risk

(2) An increase in the assessed control risk

(3) A lower acceptable audit risk

(4) A decrease in the assessed inherent risk

22. As lower acceptable levels of both audit risk and materiality are established, the audi-tor should plan
more work on individual accounts to

(1) find smaller misstatements.

(2) find larger misstatements.

(3) increase the performance materiality in the accounts.

(4) increase inherent risk in the accounts.