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NEW QUESTION: 1
In planning an audit of a new client, an auditor most likely would consider the methods used to process
accounting information because such methods:
A. Influence the design of internal control.
B. Assist in evaluating the planned audit objectives.
C. Affect the auditor's preliminary judgment about materiality levels.
D. Determine the auditor's acceptable level of audit risk.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. The auditor should consider the methods the entity uses to process accounting
information in planning the audit because such methods influence the design of internal control. The extent
to which computer processing is used in significant accounting applications, as well as the complexity of
the processing, may also influence the nature, timing, and extent of audit procedures.
Choice "B" is incorrect. Materiality is a matter of professional judgment and is influenced by the auditor's
perceptions of the needs of a reasonable person. It would not be affected by the methods used to process
accounting information.
Choice "C" is incorrect. The auditor develops specific audit objectives based on financial statement
assertions. The methods used to process accounting information would not be relevant to the development
of objectives.
Choice "D" is incorrect. Audit risk is the risk that the auditor may unknowingly fail to modify the opinion on
financial statements that are materially misstated. The acceptable level of audit risk is a matter of auditor
judgment, but it would not be affected by the methods used to process accounting information.
NEW QUESTION: 2
What is an essential feature of nostro reconciliations?
A. That they are performed in a timely and efficient way
B. That open items are booked on an internal account
C. That they are performed before the next business day
D. That a daily nostro reconciliation report is sent out to the correspondent bank
Answer: A
NEW QUESTION: 3
Investigators can use the Type Allocation Code (TAC) to find the model and origin of a mobile device. Where is TAC located in mobile devices?
A. Equipment Identity Register (EIR)
B. Integrated circuit card identifier (ICCID)
C. International Mobile Equipment Identifier (IMEI)
D. International mobile subscriber identity (IMSI)
Answer: A
DEX-403 FAQ
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