In: Accounting
Question:
Question 9
Cluster analysis is defined as _______.
-analyzing management techniques and administrative policies simultaneously
-the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.
-determining which package of audit services can be sold to a client at the best possible price
-the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.
Question 10
Matching information in key data fields _______.
-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database
-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases
-is typically a task assigned to the internal audit function
-is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases
Question 11
If the auditor is performing substantive tests at an interim date, _______.
-the auditor must perform steps to update their conclusion to the date of the financial statements
-the auditor should plan to conduct more tests once the audit report has been issued
-the auditor should perform no further steps to update their conclusion through the date of the financial statements
-then this testing will suffice and no further testing needs to be done
Question 12
If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.
-looking at evidence of subsequent cash receipt in the amount of the billing for a different customer
-looking at evidence of subsequent cash receipt in the amount of the billing to the customer
-confirming the receivable with senior management
-confirming a different receivable with a different customer instead
Question 13
Attribute sampling is a technique used to reach a conclusion about a sample in terms of a rate of occurrence.
Group of answer choices
True
False
Question 14
A material weakness is a deficiency where there is more than a remote possibility that a misstatement that is less than material, but still significant enough that it should be reported to those charged with governance.
Group of answer choices
True
False
Question 15
The first step in assessing control risk is to _______.
-understand entity-level controls
-identify relevant controls to test
-determine preliminary audit strategy
-understand the flow of transactions
Question 16
Prevention controls are those applied _______.
-at the transaction level only
-to each transaction during normal processing and are intended to stop fraud or errors from occurring
-at both the entity and transaction levels
-to each entity during normal processing and are intended to stop fraud or errors from occurring
Question 17
Internal controls can _______.
-only include certain procedures approved by management and the auditor
-include any procedure used and relied upon by the client to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions
-never be subject to senior management override
-include any procedure used and relied upon by the auditor to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions
Question 9 | ||
Cluster analysis is defined as _______. | ||
-analyzing management techniques and administrative policies simultaneously | ||
-the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. | Correct | Cluster is a group of objects that belongs to the same class and cluster analysis partition the set of data into groups based on data similarity and then assign the labels to the groups. |
-determining which package of audit services can be sold to a client at the best possible price | ||
-the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. | ||
Question 10 | ||
Matching information in key data fields _______. | ||
-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database | ||
-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases | Correct | |
-is typically a task assigned to the internal audit function | ||
-is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases | ||
Question 11 | ||
If the auditor is performing substantive tests at an interim date, _______. | ||
-the auditor must perform steps to update their conclusion to the date of the financial statements | Correct | When substantive procedures are performed at an interim date,without undertaking additional procedures at a later date |
-the auditor should plan to conduct more tests once the audit report has been issued | ||
-the auditor should perform no further steps to update their conclusion through the date of the financial statements | ||
-then this testing will suffice and no further testing needs to be done | ||
Question 12 | ||
If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______. | ||
-looking at evidence of subsequent cash receipt in the amount of the billing for a different customer | ||
-looking at evidence of subsequent cash receipt in the amount of the billing to the customer | Correct | The auditor should perform alternative procedures to obtain evidence regarding the customer's balance. If the customer has not responded after three attempts, it is possible that the customer does not exist. |
-confirming the receivable with senior management | ||
-confirming a different receivable with a different customer instead | ||
Question 13 | ||
Attribute sampling is a technique used to reach a conclusion about a sample in terms of a rate of occurrence. | ||
Group of answer choices | ||
TRUE | Correct | |
FALSE |