Choose the most appropriate.17 answer. Management fraud can be * ;divided into two types A) Concealing vital audit evidence and blocking early investigations B) Fraudulent financial reporting and misappropriation of assets C) Bribing the auditors and treating dictating their opinions D) Fraudulent allocation of a company's finances and blocking external audits da lg bs Preliminary Analytical Procedure .18 (PAP)s are conducted because of *;the following reasons except A) They are a substantive test to obtain audit evidence about particular assertions related to account balances or classes of transactions B) They are the basis on which an independent audit opinion can be made C) They serve as an overall review of the financial information in the final review stage of the audit o D) To assist the auditor in planning the nature, timing, and ex of other auditing procedures Analytical Procedures can be .19 summarized as follows. Which of ?these statements is false A) They involve the examination of audit evidence to determine the authenticity of the statements in question B) They are used throughout the audit to identify possible misstatements, reduce detailed tests, and to access going-concern issues C) They involve computation of ratios and other comparisons of recorded amounts to auditor expectations D) They are used in planning to understand the client's business and industry Documenting the overall audit .20 strategy, audit plan & audit program ;is covered under A) ISA 120 B) ISA 230 C) ISA 302 D) ISA 320 K Falsifying accounting records, .7 such as sales or cost records, in order to boost net income or sales * .figures can be regarded as fraud True False Business failure occurs when a .8 business is unable to repay its lenders or meet the expectations of its investors because of economic .or business conditions True False Audit risk occurs when the.9 auditor issues an incorrect audit opinion because it failed to comply with the requirements of auditing * .standards True False Client testimony can be used by.4 an auditor as evidence to determine whether the information being audited is stated in accordance with .the established criteria True False b Auditing is one of the Attestation .5 * .services True False An Auditor practices .6 confidentiality when he or she does not disclose any client information *.in the courts of justice True False