Acc 403 Week 6 Quiz

ACC 403 week 6 quiz

Question 1
2 out of 2 points

When dealing with audit risk:
Answer

Selected Answer: auditors accept some level of risk in performing the audit function.
Correct Answer: auditors accept some level of risk in performing the audit function.

Question 2
2 out of 2 points

________ misstatements are those where the auditor can determine the amount of the misstatement in the account.
Answer

Selected Answer: Known
Correct Answer: Known

Question 3
2 out of 2 points

When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:
Answer

Selected Answer: performance materiality.
Correct Answer:
Correct Answer: planned detection risk.

Question 6
2 out of 2 points

When taken together, the concepts of risk and materiality in auditing:
Answer

Selected Answer: measure the uncertainty of amounts of a given magnitude.
Correct Answer: measure the uncertainty of amounts of a given magnitude.

Question 7
2 out of 2 points

Auditors generally allocate the preliminary judgment about materiality to the:
Answer

Selected Answer: balance sheet only.
Correct Answer: balance sheet only.

Question 8
2 out of 2 points

If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:
Answer

Selected Answer: be reduced.
Correct Answer: be reduced.

Question 9
2 out of 2 points

As the acceptable level of detection risk increases, an auditor may change the:
Answer

Selected Answer: timing of substantive tests by performing them at an interim date rather than year