In which of the following situations would a disclaimer of opinion not be appropriate?
a. The auditor is not independent.
b. The client imposed a...
When disclaiming an opinion because of a client-imposed scope limitation, which of the following is false regarding changes that would be made to the audit report?
When disclaiming an opinion because of a client-imposed scope limitation, which of the following is false regarding changes that would be made to the...
When an auditor issues an adverse opinion, which of the following should be included in the opinion paragraph?
When an auditor issues an adverse opinion, which of the following should be included in the opinion paragraph?
a. The reasons that the financial...
In which of the following circumstances would an auditor be most likely to express an adverse opinion on a company's financial statements?
In which of the following circumstances would an auditor be most likely to express an adverse opinion on a company's financial statements?
a. Information...
Which of the following phrases should not be used when the auditor is qualifying the audit opinion?
Which of the following phrases should not be used when the auditor is qualifying the audit opinion?
a. With the exception of
b. Except for
c. Subject...
Tech Company has an uncertainty because of pending litigation. The auditor's decision to issue a qualified opinion rather than an unqualified opinion most likely would be determined by which of the following?
Tech Company has an uncertainty because of pending litigation. The auditor's decision to issue a qualified opinion rather than an unqualified opinion...
Eagle Company's financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading. Which of the following audit opinions should the auditor provide?
Eagle Company's financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading....
In which of the following situations would an auditor typically issue an unqualified opinion, but include explanatory language?
In which of the following situations would an auditor typically issue an unqualified opinion, but include explanatory language?
a. The client has...
Which of the following describes a situation when an auditor cannot typically issue a standard unqualified audit opinion?
Which of the following describes a situation when an auditor cannot typically issue a standard unqualified audit opinion?
a. The client has prepared...
In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without an explanatory paragraph?
In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without an explanatory paragraph?
a. The auditor...
Which of the following statements is true regarding the auditor's responsibilities related to reporting?
Which of the following statements is true regarding the auditor's responsibilities related to reporting?
a. Sufficient appropriate evidence should...
Which of the following statements is false regarding audit reporting?
Which of the following statements is false regarding audit reporting?
a. The auditor's opinion should be expressed in a written report.
b. The auditor...
Which of the following is not a typical communication between the auditor and the audit committee?
Which of the following is not a typical communication between the auditor and the audit committee?
A. The auditor should clearly communicate...
Which of the following is the best example of a Type II subsequent event?
Which of the following is the best example of a Type II subsequent event?
A. Election of new board members.
B. Change in auditors.
C. Inability...
The date of the audit opinion of Upton Industries, Inc. reads: March 7, 2014 except for Note D, as to which the date is March 12, 2014. What is this an example of?
The date of the audit opinion of Upton Industries, Inc. reads: March 7, 2014 except for Note D, as to which the date is March 12, 2014. What is this...
Management of AllTech, Inc. refuses to sign the management representation letter given to them in the course of the audit on the grounds that it invades the company's privacy. What does this refusal constitute?
Management of AllTech, Inc. refuses to sign the management representation letter given to them in the course of the audit on the grounds that it invades...
Which of the following statements is false regarding analytical procedures that help auditors assess the overall final presentation of the financial statements?
Which of the following statements is false regarding analytical procedures that help auditors assess the overall final presentation of the financial...
Which of the following is not a typical analytical procedure for the completion of the audit?
Which of the following is not a typical analytical procedure for the completion of the audit?
A. Ratio analysis
B. Common-size analysis
C....
If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor to follow?
If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor...
Which one of the following is false regarding the adequacy of disclosures in a financial statement audit?
Which one of the following is false regarding the adequacy of disclosures in a financial statement audit?
A. The auditor should consider...
Which of the following is not true regarding accounting estimates?
Which of the following is not true regarding accounting estimates?
A. Accounting estimates are based on management's knowledge and experience...
When responding to the auditor as a result of the audit client's letter of inquiry, how might the attorney limit the response?
When responding to the auditor as a result of the audit client's letter of inquiry, how might the attorney limit the response?
A. Limit the...
During the course of an audit, misstatements that are individually immaterial may be detected. What should the auditor do with these?
During the course of an audit, misstatements that are individually immaterial may be detected. What should the auditor do with these?
a. Permanently...
An audit firm culture that emphasizes "doing the right thing" does not incorporate which of the following to enhance audit quality?
An audit firm culture that emphasizes "doing the right thing" does not incorporate which of the following to enhance audit quality?
a. Encouraging...
Which of the following items does the auditor ask the client to send to its legal counsel requesting information about asserted claims?
Which of the following items does the auditor ask the client to send to its legal counsel requesting information about asserted claims?
a. A letter...
Which of the following individuals should sign the management representation letter?
Which of the following individuals should sign the management representation letter?
a. The members of the audit committee and board of directors.
b....
During which of the following phases of the audit are analytical review procedures required by the auditing standards?
During which of the following phases of the audit are analytical review procedures required by the auditing standards?
a. The planning phase of...
The auditor is responsible for evaluating the likelihood of a client not being a going concern for the next 12 months. What basis will the auditor use to assess this issue?
The auditor is responsible for evaluating the likelihood of a client not being a going concern for the next 12 months. What basis will the auditor use...
On what information does the auditor base a going concern evaluation?
On what information does the auditor base a going concern evaluation?
a. On separate procedures.
b. On the management discussion and analysis (MD&A).
c....
What should an auditor do when becoming aware of violations of the FCPA (Foreign Corrupt Practices Act of 1977)?
What should an auditor do when becoming aware of violations of the FCPA (Foreign Corrupt Practices Act of 1977)?
a. Contact foreign officials in...
Which of the following is a tool that is best used by the audit team to determine if the client has included all disclosures?
Which of the following is a tool that is best used by the audit team to determine if the client has included all disclosures?
a. Management representation...
In evaluating the reasonableness of an estimate, the auditor would not normally concentrate on which of the following factors and assumptions?
In evaluating the reasonableness of an estimate, the auditor would not normally concentrate on which of the following factors and assumptions?
a....
Which assertion related to investments is tested when the auditor examines the documents for any restrictions?
Which assertion related to investments is tested when the auditor examines the documents for any restrictions?
a. Existence.
b. Rights.
c. Completeness.
d....
Investments in securities are classified as which of the following?
Investments in securities are classified as which of the following?
a. Held-to-maturity.
b. Trading securities.
c. Available-for-sale securities.
d....
The emphasis in verifying petty cash is normally on which of the following?
The emphasis in verifying petty cash is normally on which of the following?
a. Year-end balance.
b. Controls over petty cash.
c. Transactions for...
The auditor will send a standard bank confirmation to which of the following?
The auditor will send a standard bank confirmation to which of the following?
a. Financial institutions of customers using the lockbox.
b. Financial...
Which of the following best describes kiting?
Which of the following best describes kiting?
a. Theft of cash for personal use and cover-up using the bank statement.
b. A fraudulent cash scheme...
What form of evidence is used by the auditor to verify bank reconciliation items?
What form of evidence is used by the auditor to verify bank reconciliation items?
a. Cash counting observation.
b. General ledger.
c. Bank confirmation.
d....
During the testing of a year-end bank reconciliation, an auditor noticed that the majority of checks listed as outstanding at year-end had not cleared the bank. Which of the following is a likely explanation?
During the testing of a year-end bank reconciliation, an auditor noticed that the majority of checks listed as outstanding at year-end had not cleared...
A company must do which of the following, if a company maintains a material compensating balance of cash?
A company must do which of the following, if a company maintains a material compensating balance of cash?
a. Disclose the compensating account arrangement...
Which of the following situations would normally be discovered as part of the test of the bank reconciliation?
Which of the following situations would normally be discovered as part of the test of the bank reconciliation?
a. Failure to bill a customer.
b....
Which of the following is a cash management arrangement with a bank whereby the organization's customers send payments directly to the client's bank, which deposits the remittance to the client's account?
Which of the following is a cash management arrangement with a bank whereby the organization's customers send payments directly to the client's bank,...
Refer to Exhibit 10.4. Which of the following assertions is relevant to the audit procedure for marketable securities that requires the auditor to examine selected documents to identify any restrictions on the marketability of securities?
Refer to Exhibit 10.4. Which of the following assertions is relevant to the audit procedure for marketable securities that requires the auditor to examine...
Refer to Exhibit 10.4 Which of the following assertions is relevant to whether the marketable securities balances include all securities transactions that have taken place during the period?
Refer to Exhibit 10.4 Which of the following assertions is relevant to whether the marketable securities balances include all securities transactions...
A bank confirmation contains which of the following two parts? 1. A part that seeks information on the client's deposit balances, the existence of loans, due dates of the loans, interest rates, dates through which interest has been paid, and collateral for loans outstanding. 2. A part that contains a listing of the last checks issued near year end. 3. A part that seeks information about any loan guarantees. 4. A part that lists all transfers between the company's bank accounts for a short period of time before and after year end.
A bank confirmation contains which of the following two parts?1. A part that seeks information on the client's deposit balances, the existence of loans,...
Which of the following statements regarding independent bank reconciliations is true?
Which of the following statements regarding independent bank reconciliations is true?
a. The auditor's performance of an independent reconciliation...
Refer to Exhibit 10.6. Which of the following represents a monitoring control in the audit program for cash receipts and cash management controls?
Refer to Exhibit 10.6. Which of the following represents a monitoring control in the audit program for cash receipts and cash management controls?
a....
Refer to Exhibit 10.6. Which of the following represents a reasonable test of controls for cash receipts and cash management controls?
Refer to Exhibit 10.6. Which of the following represents a reasonable test of controls for cash receipts and cash management controls?
a. Document...
Which mix of evidence would be most appropriate for the following scenario? This is a client where the auditor has assessed the risk of material misstatement related to the existence and completeness of cash as low, and believes that the client has implemented effective controls in the area.
Which mix of evidence would be most appropriate for the following scenario?This is a client where the auditor has assessed the risk of material misstatement...
Which mix of evidence would be most appropriate for the following scenario? This is a client where the auditor has assessed the risk of material misstatement related to the existence and completeness of cash at the maximum level. This client has incentives to overstate cash in order to meet debt covenants. Further, the client has relatively weak controls to prevent theft of cash, with a few controls being somewhat effective.
Which mix of evidence would be most appropriate for the following scenario?This is a client where the auditor has assessed the risk of material misstatement...
Which of the following is a common example of trend analysis of accounts and ratios that the auditor might consider for cash accounts?
Which of the following is a common example of trend analysis of accounts and ratios that the auditor might consider for cash accounts?
a. Compare...
The first step in performing preliminary analytical procedures is to develop an expectation of the account balance. Which of the following does not typically represent a likely expected relationship for cash accounts?
The first step in performing preliminary analytical procedures is to develop an expectation of the account balance. Which of the following does not...
Which of the following controls represents a computerized control used in the audit of cash or other liquid asset accounts?
Which of the following controls represents a computerized control used in the audit of cash or other liquid asset accounts?
a. A unique identifier...
Which era is known as the "age of reptiles"?
Which era is known as the "age of reptiles"?
A) Cenozoic
B) Mesozoic
C) Paleozoic
D) Devonian
E) Cambrian
Answer: ...
Why is the amniotic egg considered an important evolutionary breakthrough?
Why is the amniotic egg considered an important evolutionary breakthrough?
A) It has a shell that increases gas exchange.
B) It allows deposition...
Which of these are amniotes?
Which of these are amniotes?
A) amphibians
B) fishes
C) egg-laying mammals
D) placental mammals
E) More than one of these is correct.
Answer:...
What should be true of fossils of the earliest tetrapods?
What should be true of fossils of the earliest tetrapods?
A) They should show evidence of internal fertilization.
B) They should show evidence of...
A trend first observed in the evolution of the earliest tetrapods was
A trend first observed in the evolution of the earliest tetrapods was
A) the appearance of jaws.
B) the appearance of bony vertebrae.
C)...
Arrange these taxonomic terms from most inclusive (most general) to least inclusive (most specific). 1. lobe-fins 2. amphibians 3. gnathostomes 4. osteichthyans 5. tetrapods
Arrange these taxonomic terms from most inclusive (most general) to least inclusive (most specific).1. lobe-fins2. amphibians3. gnathostomes4. osteichthyans5....
Which of the following belongs to the lobe-fin clade?
Which of the following belongs to the lobe-fin clade?
A) chondrichthyans
B) ray-finned fishes
C) lampreys
D) hagfishes
E) tetrapods
Answer:...
The swim bladder of ray-finned fishes
The swim bladder of ray-finned fishes
A) was probably modified from simple lungs of chondrichthyans.
B) developed into lungs in saltwater fishes.
C)...
There is evidence that ray-finned fishes evolved
There is evidence that ray-finned fishes evolved
A) in response to a crisis that wiped out the chondrichthyans.
B) directly from lampreys...
Which group's members have had both lungs and gills during their adult lives?
Which group's members have had both lungs and gills during their adult lives?
A) sharks, skates, and rays
B) lungfishes
C) lancelets
D) amphibians
E)...
Which of these statements accurately describes a similarity between sharks and ray-finned fishes?
Which of these statements accurately describes a similarity between sharks and ray-finned fishes?
A) The skin is typically covered by flattened...
To which of the following are the scales of chondrichthyans most closely related in a structural sense?
To which of the following are the scales of chondrichthyans most closely related in a structural sense?
A) osteichthyan scales
B) reptilian scales
C)...
Which of these might have been observed in the common ancestor of chondrichthyans and osteichthyans?
Which of these might have been observed in the common ancestor of chondrichthyans and osteichthyans?
A) a mineralized, bony skeleton
B) opercula
C)...
Jaws first occurred in which extant group of fishes?
Jaws first occurred in which extant group of fishes?
A) lampreys
B) chondrichthyans
C) ray-finned fishes
D) lungfishes
E) placoderms
Answer:...
The lamprey species whose larvae live in freshwater streams, but whose adults live most of their lives in seawater, are similar in this respect to certain species of
The lamprey species whose larvae live in freshwater streams, but whose adults live most of their lives in seawater, are similar in this respect to certain...
A team of researchers has developed a poison that has proven effective against lamprey larvae in freshwater cultures. The poison is ingested and causes paralysis by detaching segmental muscles from the skeletal elements. The team wants to test the poison's effectiveness in streams feeding Lake Michigan, but one critic worries about potential effects on lancelets, which are similar to lampreys in many ways. Why is this concern misplaced?
A team of researchers has developed a poison that has proven effective against lamprey larvae in freshwater cultures. The poison is ingested and causes...
The earliest known mineralized structures in vertebrates are associated with which function?
The earliest known mineralized structures in vertebrates are associated with which function?
A) reproduction
B) feeding
C) locomotion
D) defense
E)...
The feeding mode of the extinct conodonts was
The feeding mode of the extinct conodonts was
A) herbivory.
B) suspension feeding.
C) predation.
D) filter feeding.
E) absorptive feeding.
Answer:...
Lampreys differ from hagfishes in
Lampreys differ from hagfishes in
A) lacking jaws.
B) having a cranium.
C) having pharyngeal clefts that develop into pharyngeal slits.
D)...
What do all craniates have that earlier chordates did not have?
What do all craniates have that earlier chordates did not have?
A) brain
B) vertebrae
C) cartilaginous pipe surrounding notochord
D) partial...
How many of the following statements about craniates is (are) correct? 1. Craniates are more highly cephalized than are noncraniates. 2. Craniates' genomic evolution includes duplication of clusters of genes that code for transcription factors. 3. The craniate clade is synonymous with the vertebrate clade. 4. Pharyngeal slits that play important roles in gas exchange originated in craniates. 5. The two-chambered heart originated with the early craniates.
How many of the following statements about craniates is (are) correct?1. Craniates are more highly cephalized than are noncraniates.2. Craniates' genomic...
A new species of aquatic chordate is discovered that closely resembles an ancient form. It has the following characteristics: external armor of bony plates, no paired lateral fins, and a suspension-feeding mode of nutrition. In addition to these, it will probably have which of the following characteristics?
A new species of aquatic chordate is discovered that closely resembles an ancient form. It has the following characteristics: external armor of bony...
Which extant chordates are postulated to be most like the earliest chordates in appearance?
Which extant chordates are postulated to be most like the earliest chordates in appearance?
A) lancelets
B) adult tunicates
C) amphibians
D)...
Which of the following statements would be least acceptable to most zoologists?
Which of the following statements would be least acceptable to most zoologists?
A) The extant lancelets are contemporaries, not ancestors,...
Chordate pharyngeal slits appear to have functioned first as
Chordate pharyngeal slits appear to have functioned first as
A) the digestive system's opening.
B) suspension-feeding devices.
C) components...
Which of the following combinations of phylum and description is incorrect?
Which of the following combinations of phylum and description is incorrect?
A) Echinodermata–bilateral symmetry as a larva, coelom present
B)...
The water vascular system of echinoderms
The water vascular system of echinoderms
A) functions as a circulatory system that distributes nutrients to body cells.
B) functions in locomotion...
Which phylum is characterized by animals that have a segmented body?
Which phylum is characterized by animals that have a segmented body?
A) Cnidaria
B) Platyhelminthes
C) Porifera
D) Arthropoda
E) Mollusca
Answer:...
A land snail, a clam, and an octopus all share
A land snail, a clam, and an octopus all share
A) a mantle.
B) a radula.
C) gills.
D) embryonic torsion.
E) distinct cephalization.
Answer:...
The teacher and class were especially saddened when the colonial hydrozoan died. They had watched it carefully, and the unfortunate creature never even got to produce offspring by budding. Yet, everyone was elated when Tommy (now recovered) noticed a small colonial hydrozoan growing in a part of the tank far from the location of the original colony. The teacher was apparently unaware that these hydrozoans exhibit
The teacher and class were especially saddened when the colonial hydrozoan died. They had watched it carefully, and the unfortunate creature never even...
An elementary school science teacher decided to liven up the classroom with a saltwater aquarium. Knowing that saltwater aquaria can be quite a hassle, the teacher proceeded stepwise. First, the teacher conditioned the water. Next, the teacher decided to stock the tank with various marine invertebrates, including a polychaete, a siliceous sponge, several bivalves, a shrimp, several sea anemones of different types, a colonial hydra, a few coral species, an ectoproct, a sea star, and several herbivorous gastropod varieties. Lastly, she added some vertebrates–a parrotfish and a clownfish. She arranged for daily feedings of copepods and feeder fish
An elementary school science teacher decided to liven up the classroom with a saltwater aquarium. Knowing that saltwater aquaria can be quite a hassle,...
A farm pond, usually dry during winter, has plenty of water and aquatic pond life during the summer. One summer, Sarah returns to the family farm from college. Observing the pond, she is fascinated by some six-legged organisms that can crawl about on submerged surfaces or, when disturbed, seemingly "jet" through the water. Watching further, she is able to conclude that the "mystery organisms" are ambush predators, and their prey includes everything from insects to small fish and tadpoles.
A farm pond, usually dry during winter, has plenty of water and aquatic pond life during the summer. One summer, Sarah returns to the family farm from...
Nudibranchs, a type of predatory sea slug, can have various protuberances (i.e., extensions) on their dorsal surfaces. Rhinophores are paired structures, located close to the head, which bear many chemoreceptors. Dorsal plummules, usually located posteriorly, perform respiratory gas exchange. Cerata usually cover much of the dorsal surface and contain nematocysts at their tips.
Nudibranchs, a type of predatory sea slug, can have various protuberances (i.e., extensions) on their dorsal surfaces. Rhinophores are paired structures,...
Which of the following is a diploblastic phylum of aquatic predators?
Which of the following is a diploblastic phylum of aquatic predators?
A) Cnidaria
B) Annelida
C) Mollusca
D) Arthropoda
E) Echinodermata
Answer:...
In a tide pool, a student encounters an organism with a hard outer covering that contains much calcium carbonate, an open circulatory system, and gills. The organism could potentially be a crab, a shrimp, a barnacle, or a bivalve. The presence of which of the following structures would allow for the most certain identification of the organism?
In a tide pool, a student encounters an organism with a hard outer covering that contains much calcium carbonate, an open circulatory system, and gills....
Which of the following animal groups is entirely aquatic?
Which of the following animal groups is entirely aquatic?
A) Mollusca
B) Crustacea
C) Echinodermata
D) Nematoda
E) Platyhelminthes
Answer:...
A stalked, sessile marine organism has several feathery feeding structures surrounding an opening through which food enters. The organism could potentially be a cnidarian, a lophophorate, a tube-dwelling worm, a crustacean, or an echinoderm. Which of the following traits, if found in this organism, would allow the greatest certainty of identification?
A stalked, sessile marine organism has several feathery feeding structures surrounding an opening through which food enters. The organism could potentially...
Which of the following describe(s) echinoderms?
Which of the following describe(s) echinoderms?
A) They have an exoskeleton of hard calcareous plates.
B) Tubefeet provide motility in most...
Which of the following is a characteristic of adult echinoderms?
Which of the following is a characteristic of adult echinoderms?
A) bilateral symmetry
B) spiral cleavage
C) gastrovascular cavity
D) exoskeleton
E)...
One should expect to find the "9 + 2 pattern" of microtubules in association with the feeding apparatus of which of the following?
One should expect to find the "9 + 2 pattern" of microtubules in association with the feeding apparatus of which of the following?
A) annelids
B)...
The possession of two pairs of antennae is a characteristic of
The possession of two pairs of antennae is a characteristic of
A) spiders.
B) insects.
C) centipedes.
D) millipedes.
E) crustaceans.
Answer:...
A terrestrial animal species is discovered with the following larval characteristics: exoskeleton, system of tubes for gas exchange, and modified segmentation. A knowledgeable zoologist should predict that the adults of this species would also feature
A terrestrial animal species is discovered with the following larval characteristics: exoskeleton, system of tubes for gas exchange, and modified segmentation....
What distinguishes complete metamorphosis from incomplete metamorphosis in insects?
What distinguishes complete metamorphosis from incomplete metamorphosis in insects?
A) the presence of wings in the adult, but not in earlier...
You find a small animal with eight legs crawling up your bedroom wall. Closer examination will probably reveal that this animal has
You find a small animal with eight legs crawling up your bedroom wall. Closer examination will probably reveal that this animal has
A) simple,...
A shared derived characteristic for members of the arthropod subgroup that includes spiders would be the presence of
A shared derived characteristic for members of the arthropod subgroup that includes spiders would be the presence of
A) chelicerae.
B) an...
Among the invertebrate phyla, phylum Arthropoda is unique in possessing members that have
Among the invertebrate phyla, phylum Arthropoda is unique in possessing members that have
A) a cuticle.
B) a ventral nerve cord.
C) open...
How many of the following are characteristics of arthropods? 1. protostome development 2. bilateral symmetry 3. a pseudocoelom 4. three embryonic germ layers 5. a closed circulatory system
How many of the following are characteristics of arthropods?1. protostome development2. bilateral symmetry3. a pseudocoelom4. three embryonic germ layers5....
Which of the following are entirely, or partly, composed of calcium carbonate?
Which of the following are entirely, or partly, composed of calcium carbonate?
A) spicules of siliceous sponges
B) coral animals' exoskeletons
C)...
Infection with which parasite might cause excessive elasticity in human skeletal muscles?
Infection with which parasite might cause excessive elasticity in human skeletal muscles?
A) trichinella worms
B) tapeworms
C) copepods
D)...
The heartworms that can accumulate within the hearts of dogs and other mammals have a pseudocoelom, an alimentary canal, and an outer covering that is occasionally shed. To which phylum does the heartworm belong?
The heartworms that can accumulate within the hearts of dogs and other mammals have a pseudocoelom, an alimentary canal, and an outer covering that...
A student observes a wormlike organism crawling about on dead organic matter. Later, the organism sheds its outer covering. One possibility is that the organism is a larval insect (like a maggot). However, it might be a member of the phylum ________, and one way to distinguish between the two possibilities is by looking for ________.
A student observes a wormlike organism crawling about on dead organic matter. Later, the organism sheds its outer covering. One possibility is that...
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