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NEW QUESTION: 1
Which of the following statements reflects an auditor's responsibility for detecting errors and fraud?
A. An auditor should plan the audit to detect errors and fraud that are caused by departures from GAAP.
B. An auditor is not responsible for detecting errors and fraud unless the application of GAAS would result
in such detection.
C. An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that
are material to the financial statements.
D. An auditor is responsible for detecting employee errors and fraud, but not for discovering fraud
involving employee collusion or management override.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The auditor should assess the risk that errors and fraud may cause the financial
statements to contain a material misstatement. Based on that assessment, the auditor should design the
audit to provide reasonable assurance of detecting material errors and fraud.
Choice "A" is incorrect. An auditor is responsible for designing the audit to provide reasonable assurance
of detecting material misstatement. This responsibility is the same regardless of the cause of the
misstatement. The presence of employee collusion or management override does not change the auditor's
responsibility, although it might explain why a properly planned and executed audit did not result in the
discovery of material fraud.
Choice "B" is incorrect. The audit should be designed to detect material errors and fraud, regardless of the
cause.
Choice "C" is incorrect. The auditor is not "responsible for detecting errors and fraud," but is responsible
for designing the audit to provide reasonable assurance of detecting material misstatement, whether due
to errors or fraud. Note that the auditor's responsibility relates to the design and execution of the audit, and
that even an audit performed in accordance with GAAS may miss a material misstatement.
NEW QUESTION: 2
Which of the following entities is subject to be accused of churning?
I. investment advisers
II. investment adviser representatives
III. broker-dealers
IV. agents
A. II, III, and IV only
B. I and III only
C. II and IV only
D. I, II, III, and IV
Answer: D
Explanation:
Selections I, II, III, and IV-investment advisers, their representatives, and broker-dealers and
their agents-are subject to accusations of churning. Any activity on the part of any of these parties that
suggests that they are engaged in encouraging excessive trading on the accounts of their clients makes
them subject to allegations of churning their customers' accounts.
NEW QUESTION: 3
A company has asked an architect for assistance in reviewing its design plans for distributing a finance application to its users with multiple RDS hosts using a custom load balancing script.
What can the architect recommend for a script with proper load return values to prevent overloading of an RDS host?
A. Block connections to this RDS host at a load value of 0.
B. Allow connections to this RDS host at a load value of allow.
C. Allow connections to this RDS host at a load value of 0.
D. Block connections to this RDS host at a load value of block.
Answer: D
Explanation:
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AZ-204 Exam Info
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AZ-204 Exam Topics
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AZ-204 Offcial Page
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