Question 1

The PCAOB is a public board,appointed by Congress,to provide oversight of the firms that audit public companies registered with the SEC.

Accepted Answer

A) True 
 B)False  False

Question 2

Auditing is the process of attesting to assertions about economic actions and events.

Accepted Answer

A) True 
 B)False  True

Question 3

Who licenses CPAs?

Accepted Answer

A) The PCAOB. 
B) The AICPA. 
C) The state boards of accountancy. 
D) The SEC. 
A) The PCAOB. 
B) The AICPA. 
C) The state boards of accountancy. 
D) The SEC. C

Question 4

Users of financial statements Identify at least three types of users of financial statements.Describe their primary use of the financial statements and how the misstatement of those statements might injure the user.

Accepted Answer

Users of audited financial statements ma

Question 5

The Center for Audit Quality was started by the International Federation of Accountants.

Accepted Answer

A) True 
 B)False

Question 6

According to the AICPA,which of the following is not a safeguards to the auditing profession?

Accepted Answer

A) Education. 
B) Professional standards. 
C) External reviews. 
D) Legislation concerning competency requirements. 
A) Education. 
B) Professional standards. 
C) External reviews. 
D) Legislation concerning competency requirements.

Question 7

Which one of the following is not an example of a typical review program?

Accepted Answer

A) Interoffice reviews. 
B) Engagement quality review. 
C) Peer reviews. 
D) Self reviews. 
A) Interoffice reviews. 
B) Engagement quality review. 
C) Peer reviews. 
D) Self reviews.

Question 8

What is the primary objective of the independent auditor's report on financial statements?

Accepted Answer

A) To report on all incidence of fraud. 
B) To assist the board in evaluating management's effectiveness. 
C) To express the auditors opinion on the internal controls. 
D) To give credibility to management's prepared financial statements. 
A) To report on all incidence of fraud. 
B) To assist the board in evaluating management's effectiveness. 
C) To express the auditors opinion on the internal controls. 
D) To give credibility to management's prepared financial statements.

Question 9

The FASB provide the criteria against which the auditor can measure the fairness of financial statement presentation.

Accepted Answer

A) True 
 B)False

Question 10

Impact of Sarbanes-Oxley What are four ways that Sarbanes-Oxley impacted the auditing profession?

Accepted Answer

- Increased auditor independence 
- Enha

Question 11

The SEC provides annual reports to the PCAOB.

Accepted Answer

A) True 
 B)False

Question 12

In all states,a CPA must have completed at least 150 hours of college semester hours to receive their license.

Accepted Answer

A) True 
 B)False

Question 13

External auditors frequently serve on the audit committees of their clients.

Accepted Answer

A) True 
 B)False

Question 14

What is the management of a company is responsible for?

Accepted Answer

A) Hiring the auditor. 
B) Preparing the financial statements. 
C) The audit workpapers. 
D) Ensuring auditor independence. 
A) Hiring the auditor. 
B) Preparing the financial statements. 
C) The audit workpapers. 
D) Ensuring auditor independence.

Question 15

Why is auditing important in a free market society?

Accepted Answer

A) The public requires auditors to function as divisions of regulatory bodies. 
B) Auditors detect all errors and fraud perpetrated by company employees. 
C) It provides reliable information upon which to judge economic performance. 
D) The auditor is an amiable insurance policy for investors. 
E) All of the above are true. 
A) The public requires auditors to function as divisions of regulatory bodies. 
B) Auditors detect all errors and fraud perpetrated by company employees. 
C) It provides reliable information upon which to judge economic performance. 
D) The auditor is an amiable insurance policy for investors. 
E) All of the above are true.

Question 16

A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting.

Accepted Answer

A) True 
 B)False

Question 17

As it relates to an audit,which of following statement about professional skepticism is true?

Accepted Answer

A) Professional skepticism is not taken into consideration. 
B) Professional skepticism relates only to the nature of procedures performed. 
C) Professional skepticism is an attitude. 
D) Professional skepticism is determined based upon the importance to a user of the financial statements. 
A) Professional skepticism is not taken into consideration. 
B) Professional skepticism relates only to the nature of procedures performed. 
C) Professional skepticism is an attitude. 
D) Professional skepticism is determined based upon the importance to a user of the financial statements.

Question 18

Audit staff performing audit work must be appropriately supervised by partners and managers.

Accepted Answer

A) True 
 B)False

Question 19

In the United States,what is the most common criteria against which the auditor measures the fairness of financial statement presentation?

Accepted Answer

A) Auditing standards. 
B) Generally accepted accounting principles. 
C) Generally accepted accounting standards. 
D) Governmental accounting principles. 
A) Auditing standards. 
B) Generally accepted accounting principles. 
C) Generally accepted accounting standards. 
D) Governmental accounting principles.

Question 20

Which governing board performs quality reviews on registered audit firms that audit public companies?

Accepted Answer

A) PCAOB. 
B) GAO. 
C) AICPA. 
D) FASB. 
A) PCAOB. 
B) GAO. 
C) AICPA. 
D) FASB.

The PCAOB is a public board,appointed by Congress,to provide oversight of the firms that audit public companies registered with the SEC.

Auditing is the process of attesting to assertions about economic actions and events.

Who licenses CPAs?

Users of financial statements Identify at least three types of users of financial statements.Describe their primary use of the financial statements and how the misstatement of those statements might injure the user.

The Center for Audit Quality was started by the International Federation of Accountants.

According to the AICPA,which of the following is not a safeguards to the auditing profession?

Which one of the following is not an example of a typical review program?

What is the primary objective of the independent auditor's report on financial statements?

The FASB provide the criteria against which the auditor can measure the fairness of financial statement presentation.

Impact of Sarbanes-Oxley What are four ways that Sarbanes-Oxley impacted the auditing profession?

The SEC provides annual reports to the PCAOB.

In all states,a CPA must have completed at least 150 hours of college semester hours to receive their license.

External auditors frequently serve on the audit committees of their clients.

What is the management of a company is responsible for?

Why is auditing important in a free market society?

A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting.

As it relates to an audit,which of following statement about professional skepticism is true?

Audit staff performing audit work must be appropriately supervised by partners and managers.

In the United States,what is the most common criteria against which the auditor measures the fairness of financial statement presentation?

Which governing board performs quality reviews on registered audit firms that audit public companies?

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

Professional Auditing Standards and the Audit Opinion Formulation Process

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

Filters

Exam 1: Auditing: Integral to the Economy

The PCAOB is a public board,appointed by Congress,to provide oversight of the firms that audit public companies registered with the SEC.

Auditing is the process of attesting to assertions about economic actions and events.

Who licenses CPAs?

Users of financial statements Identify at least three types of users of financial statements.Describe their primary use of the financial statements and how the misstatement of those statements might injure the user.

The Center for Audit Quality was started by the International Federation of Accountants.

According to the AICPA,which of the following is not a safeguards to the auditing profession?

Which one of the following is not an example of a typical review program?

What is the primary objective of the independent auditor's report on financial statements?

The FASB provide the criteria against which the auditor can measure the fairness of financial statement presentation.

Impact of Sarbanes-Oxley What are four ways that Sarbanes-Oxley impacted the auditing profession?

The SEC provides annual reports to the PCAOB.

In all states,a CPA must have completed at least 150 hours of college semester hours to receive their license.

External auditors frequently serve on the audit committees of their clients.

What is the management of a company is responsible for?

Why is auditing important in a free market society?

A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting.

As it relates to an audit,which of following statement about professional skepticism is true?

Audit staff performing audit work must be appropriately supervised by partners and managers.

In the United States,what is the most common criteria against which the auditor measures the fairness of financial statement presentation?

Which governing board performs quality reviews on registered audit firms that audit public companies?

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

Professional Auditing Standards and the Audit Opinion Formulation Process

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

Filters