Risk and Procedures for Control Paper 20

1

A market analyst has estimated the equity beta of Modern Homes Inc. to be 1.4. This beta implies that the company’s






2

A measure that describes the risk of an investment project relative to other investments in general is the






3

The expected rate of return for the stock of Cornhusker Enterprises is 20%, with a standard deviation of 15%. The expected rate of return for the stock of Mustang Associates is 10%, with a standard deviation of 9%. The riskier stock is






4

Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?






5

Which of the following is not an attestation standard?






6

Which of the following is most likely to be unique to the audit work of CPAs as compared to work performed by practitioners of other professions?






7

The Public Company Accounting Oversight Board’s third general standard states that due care is to be exercised in the performance of an audit. This standard is ordinarily interpreted to require






8

After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up working paper review. This second review usually focuses on






9

Financial statement assertions are established for account balances, Classes of transactions . . . Disclosures






10

Which of the following is not a financial statement assertion relating to account balances?






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