Interview question based on skill :
Take as many assements as you can to improve your validate your skill rating
Total Questions: 5
1. Audit risk:
Correct Answer is : Is the risk that a "clean" opinion will be issued when, in reality, the financial statements are materially misstated.
2. The responsibility for implementing sound accounting practices and principles, maintaining an adequate internal control structure, and making fair representations in the financial statements rests primarily with the:
Correct Answer is : Senior management
3. The examination of all of a client's transactions would make an audit very costly. Thus, auditors rely heavily on sampling as a way to obtain evidence. Which of the following would result in a smaller sample?
Correct Answer is : A decrease in the desired level of assurance.
4. Independent auditing can best be described as:
Correct Answer is : A branch of accounting.
5. Financial statement users' demand for assurance is similar to that of a potential home buyer who hires a home inspector in that:
Correct Answer is : There are often information asymmetry and conflicts of interest.
