21.  The senior manager from Kevin & Kevin, CPAs, instructed her staff auditor, Bronson, to perform a search for unrecorded liabilities during the current audit of Sterman Corporation.  Bronson would most likely perform which of the following procedures.

21.  The senior manager from Kevin & Kevin, CPAs, instructed her staff auditor, Bronson, to perform a search for unrecorded liabilities during the current audit of Sterman Corporation.  Bronson would most likely perform which of the following procedures.

40.  The auditor’s report for the annual audit of McA’Nulty & Sons, Inc., a U.S. publicly-traded company operating a diversified importing business, contains the following paragraph: We did not audit the financial statements of Needham Enterprises, a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 35% and 37%, respectively, of the consolidated totals.  Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Needham Enterprises, is based solely on the report of the other auditors. This portion of the auditor’s report issued for the current audit of McA’Nulty & Sons, Inc.:

7.  In determining the number of documents to select for a test to obtain assurance that all sales have been properly authorized, an auditor should consider the tolerable rate of deviation from the control activity.  The auditor should also consider the:      I.  Allowable risk of assessing control risk too high.     II.  Likely rate of deviation.

15.  After obtaining an understanding of internal control and assessing the risk of material misstatement, an auditor decided to perform tests of controls.  The auditor most likely decided that

6.  Which of the following best represents a key control for ensuring sales are properly authorized when assessing control risks for sales?

15.  After obtaining an understanding of internal control and assessing the risk of material misstatement, an auditor decided to perform tests of controls.  The auditor most likely decided that

33.  As the acceptable level of detection risk increases, the assurance directly provided from:

18.  Which of the following matters is an auditor required to communicate to a client’s audit committee?

50.  How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a substantive test of details?