Question 1

All audit evidence is the result of the application of audit procedures.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following items is not included in the engagement letter?

Accepted Answer

A) The responsibilities of the auditor. 
B) The responsibilities of management. 
C) The objective of the financial statements. 
D) Identification of the applicable financial reporting framework for the preparation of the financial statements. 
A) The responsibilities of the auditor. 
B) The responsibilities of management. 
C) The objective of the financial statements. 
D) Identification of the applicable financial reporting framework for the preparation of the financial statements.

Question 3

Write the three general auditing standards of the PCAOB.

Accepted Answer

The genera

Question 4

The Standards of the PCAOB can be broken up in to three categories,i.e.,general,fieldwork,and reporting.Which of the following standards is one of the general standards?

Accepted Answer

A) Training and proficiency. 
B) Internal control. 
C) Sufficient appropriate evidence. 
D) Consistency. 
A) Training and proficiency. 
B) Internal control. 
C) Sufficient appropriate evidence. 
D) Consistency.

Question 5

Which of the following groups are committed to the convergence of the auditing standards?

Accepted Answer

A) IAASB. 
B) PCAOB. 
C) AICPA. 
D) Both A and C. 
E) All of the above. 
A) IAASB. 
B) PCAOB. 
C) AICPA. 
D) Both A and C. 
E) All of the above.

Question 6

Test of controls are a type of substantive procedure.

Accepted Answer

A) True 
 B)False

Question 7

An auditor must be independent in fact and in appearance.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following attributes is not required of an auditor?

Accepted Answer

A) Independence. 
B) Bias. 
C) Integrity. 
D) Technical competence. 
A) Independence. 
B) Bias. 
C) Integrity. 
D) Technical competence.

Question 9

The first stage in an audit is performing a risk assessment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

Accepted Answer

A) Existence. 
B) Valuation. 
C) Disclosure. 
D) Completeness. 
A) Existence. 
B) Valuation. 
C) Disclosure. 
D) Completeness.

Question 11

With a substantive audit strategy,what is an auditor likely to do?

Accepted Answer

A) Extensively tests internal controls. 
B) Limit the testing of internal controls. 
C) Not assess control risks. 
D) Issue an adverse opinion on the financial statements. 
A) Extensively tests internal controls. 
B) Limit the testing of internal controls. 
C) Not assess control risks. 
D) Issue an adverse opinion on the financial statements.

Question 12

An auditor must obtain an adequate amount of evidence and the evidence must be of the appropriate quality.

Accepted Answer

A) True 
 B)False

Question 13

What are the PCAOB standards that cover the essential elements of communication,the criteria against which the assertions were tested,and an explanation of the basis for the auditor's opinion are known as?

Accepted Answer

A) General standards. 
B) Standards of fieldwork. 
C) Standards of reporting. 
D) None of the above. 
A) General standards. 
B) Standards of fieldwork. 
C) Standards of reporting. 
D) None of the above.

Question 14

The PCAOB's second fieldwork standard requires auditors develop an understanding of the client's controls as an important prerequisite to developing specific audit tests.

Accepted Answer

A) True 
 B)False

Question 15

The PCAOB has authority over the AICPA.

Accepted Answer

A) True 
 B)False

Question 16

The AICPA requires that auditor expresses an opinion as to whether the financial statements are free of material misstatement or states that an opinion cannot be expressed.

Accepted Answer

A) True 
 B)False

Question 17

The standards of fieldwork include the responsibility of the auditor to exercise due professional care.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Accepted Answer

A) Understanding the entity's internal control is a requirement of GAAS. 
B) The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control. 
C) It is the primary basis for the audit report. 
D) It assists the auditor in designing the nature,timing and extent of further audit procedures. 
A) Understanding the entity's internal control is a requirement of GAAS. 
B) The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control. 
C) It is the primary basis for the audit report. 
D) It assists the auditor in designing the nature,timing and extent of further audit procedures.

Question 19

Rather than keeping the ten standards,what did the AICPA develop?

Accepted Answer

A) Seven Standards. 
B) Seven Concepts. 
C) Seven Fundamental Principles. 
D) Seven Governing Principles. 
A) Seven Standards. 
B) Seven Concepts. 
C) Seven Fundamental Principles. 
D) Seven Governing Principles.

Question 20

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items,such as examining a credit balance in an account that typically has a debit balance.

Accepted Answer

A) True 
 B)False

All audit evidence is the result of the application of audit procedures.

Which of the following items is not included in the engagement letter?

Write the three general auditing standards of the PCAOB.

The Standards of the PCAOB can be broken up in to three categories,i.e.,general,fieldwork,and reporting.Which of the following standards is one of the general standards?

Which of the following groups are committed to the convergence of the auditing standards?

Test of controls are a type of substantive procedure.

An auditor must be independent in fact and in appearance.

Which one of the following attributes is not required of an auditor?

The first stage in an audit is performing a risk assessment.

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

With a substantive audit strategy,what is an auditor likely to do?

An auditor must obtain an adequate amount of evidence and the evidence must be of the appropriate quality.

What are the PCAOB standards that cover the essential elements of communication,the criteria against which the assertions were tested,and an explanation of the basis for the auditor's opinion are known as?

The PCAOB's second fieldwork standard requires auditors develop an understanding of the client's controls as an important prerequisite to developing specific audit tests.

The PCAOB has authority over the AICPA.

The AICPA requires that auditor expresses an opinion as to whether the financial statements are free of material misstatement or states that an opinion cannot be expressed.

The standards of fieldwork include the responsibility of the auditor to exercise due professional care.

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Rather than keeping the ten standards,what did the AICPA develop?

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items,such as examining a credit balance in an account that typically has a debit balance.

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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Exam 5: Professional Auditing Standards and the Audit Opinion Formulation Process

All audit evidence is the result of the application of audit procedures.

Which of the following items is not included in the engagement letter?

Write the three general auditing standards of the PCAOB.

The Standards of the PCAOB can be broken up in to three categories,i.e.,general,fieldwork,and reporting.Which of the following standards is one of the general standards?

Which of the following groups are committed to the convergence of the auditing standards?

Test of controls are a type of substantive procedure.

An auditor must be independent in fact and in appearance.

Which one of the following attributes is not required of an auditor?

The first stage in an audit is performing a risk assessment.

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

With a substantive audit strategy,what is an auditor likely to do?

An auditor must obtain an adequate amount of evidence and the evidence must be of the appropriate quality.

What are the PCAOB standards that cover the essential elements of communication,the criteria against which the assertions were tested,and an explanation of the basis for the auditor's opinion are known as?

The PCAOB's second fieldwork standard requires auditors develop an understanding of the client's controls as an important prerequisite to developing specific audit tests.

The PCAOB has authority over the AICPA.

The AICPA requires that auditor expresses an opinion as to whether the financial statements are free of material misstatement or states that an opinion cannot be expressed.

The standards of fieldwork include the responsibility of the auditor to exercise due professional care.

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Rather than keeping the ten standards,what did the AICPA develop?

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items,such as examining a credit balance in an account that typically has a debit balance.

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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