Which of the following explanations best describes why an auditor may decide to reduce tests of details for a particular audit objective?
参考答案(由小熊题库网聘请的专业题库老师提供的解答)
请点击↑↑↑ 查看官方参考答案 按钮
习题解析
请点击 查看官方参考答案 按钮
您可能感兴趣的题目
1 .State College is using cost-volume-profit analysis to determine tuition rates for the upcoming school year. Projected costs for the year are as follows: Contribution margin per student $1,800 Variable expenses per student 1,000 Total fixed expenses 360,000 Based on these estimates, what is the approximate breakeven point in number of students?
A 200 B 360 C 129 D 450
2 .After obtaining an understanding of internal control and performing risk assessment procedures, an auditor decided not to perform tests of controls. The auditor most likely concluded that the:
A Assessed level of inherent risk exceeded the assessed level of control risk. B Evidence obtainable through tests of controls would not support an increased level of control risk. C Additional evidence to support a reduction in control risk was not cost-beneficial to obtain. D Internal control was ...
3 .A ceramics manufacturer sold cups last year for USD7.50 each. Variable costs of manufacturing were USD2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was USD5,040. This year, the company expects the following changes: sales price per cup to be USD9.00; variable manufacturing costs to increase 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year's sales by 1,000 units. How many units does the company expect to sell this year?
A 21,600 B 21,000 C 22,600 D 21,960
4 .In an environment that is highly automated, an auditor determines that it is not possible to reduce detection risk solely by substantive tests of transactions. Under these circumstances, the auditor most likely would:
A Perform tests of controls to support a lower level of assessed control risk. B Adjust the materiality level and consider the effect on inherent risk. C Apply analytical procedures and consider the effect on control risk. D Increase the sample size to reduce sampling risk and detection risk.
5 .At the end of a company's first year of operations, 2,000 units of inventory are on hand. Variable costs are USD100 per unit, and fixed manufacturing costs are USD30 per unit. The use of absorption costing, rather than variable costing, would result in a higher net income of what amount?
A USD200,000 B USD140,000 C USD60,000 D USD260,000
7 .A company's target gross margin is 40% of the selling price of a product that costs USD89 per unit. The product's selling price should be:
A USD148.33 B USD222.50 C USD124.60 D USD142.40
8 .At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take?
A Obtain a statement from management supporting their inventory valuation. B Consult with the audit committee and issue a qualified opinion. C Consult with the audit committee and issue a disclaimer of opinion. D Obtain additional evidence regarding the valuation of inventory.
9 .Marston Enterprises sells three chemicals: petrol, septine, and tridol. Petrol is the company's most profitable product; tridol is the least profitable. Which one of the following events will definitely decrease the firm's overall breakeven point for the upcoming accounting period?
A An increase in anticipated sales of petrol relative to sales of septine and tridol. B An increase in the overall market for septine. C The installation of new computer-controlled machinery and subsequent layoff of assembly-line workers. D An increase in petrol's raw material cost.
10 .An auditor may achieve audit objectives related to particular assertions by:
A Increasing the level of detection risk. B Adhering to a system of quality control. C Preparing audit documentation. D Performing analytical procedures.
