Question 1

Users rely on the auditors' independent assessment of financial statement presentation because few users have direct knowledge of the company's operations.

Accepted Answer

A) True 
 B)False

Question 2

Attributes of Auditors Discuss the three or more attributes that an auditors possess in order to maintain credibility.Explain the importance of these attributes to the audit.

Accepted Answer

1) Subject Matter Knowledge - The assura

Question 3

Bondholders are one of the users of financial statements.

Accepted Answer

A) True 
 B)False

Question 4

What must an auditor do in an audit?

Accepted Answer

A) Consider how the economic activity is portrayed in the financial statements. 
B) Force management to make operational decisions that will improve the company's financial performance. 
C) Disregard independence in order to find the underlying truth of the evidence. 
D) Establish new criteria by which financial statements may be compared. 
A) Consider how the economic activity is portrayed in the financial statements. 
B) Force management to make operational decisions that will improve the company's financial performance. 
C) Disregard independence in order to find the underlying truth of the evidence. 
D) Establish new criteria by which financial statements may be compared.

Question 5

Which of the following is a driver of audit quality?

Accepted Answer

A) Audit firm culture. 
B) Engagement team skills and attributes. 
C) Factors outside control of auditors. 
D) Investor requirements. 
E) A,B,and C only. 
A) Audit firm culture. 
B) Engagement team skills and attributes. 
C) Factors outside control of auditors. 
D) Investor requirements. 
E) A,B,and C only.

Question 6

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

Accepted Answer

A) The financial markets. 
B) Management. 
C) Auditors. 
D) Both B and C. 
E) All of the above. 
A) The financial markets. 
B) Management. 
C) Auditors. 
D) Both B and C. 
E) All of the above.

Question 7

An integrated audit requires the auditor to assess the effectiveness of internal controls.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following is not a key attribute needed to perform an audit?

Accepted Answer

A) Subject matter knowledge. 
B) Independence. 
C) Established criteria or standards. 
D) Accounting skills. 
A) Subject matter knowledge. 
B) Independence. 
C) Established criteria or standards. 
D) Accounting skills.

Question 9

Why does the AICPA remain a valuable organization?

Accepted Answer

A) Its continued involvement in the enforcement of auditing standards,particularly for public companies. 
B) Its continued involvement in the regulation and enforcement of the audit profession. 
C) Its continued involvement in the education and administration of the CPA exam. 
D) Its continued involvement in the promulgation of accounting standards. 
A) Its continued involvement in the enforcement of auditing standards,particularly for public companies. 
B) Its continued involvement in the regulation and enforcement of the audit profession. 
C) Its continued involvement in the education and administration of the CPA exam. 
D) Its continued involvement in the promulgation of accounting standards.

Question 10

Regulatory and professional bodies Write the full name of the following regulatory and professional acronyms and describe the function of each entity: PCAOB AICPA SEC IIA FASB

Accepted Answer

PCAOB is the primary governing regulator

Question 11

Which of the following is not required of auditors to satisfying the interdependence standards?

Accepted Answer

A) The auditor must be appointed by the SEC. 
B) The auditor must be intellectually honest. 
C) The auditor must be unbiased. 
D) The auditor must be objective. 
A) The auditor must be appointed by the SEC. 
B) The auditor must be intellectually honest. 
C) The auditor must be unbiased. 
D) The auditor must be objective.

Question 12

Audit Quality What is audit quality?

Accepted Answer

A definition published by the GAO (2003)

Question 13

Professional and regulatory organizations Identify at least four professional or regulatory organizations.Explain how and why they assist and/or monitor the audit and assurance profession.

Accepted Answer

PCAOB is the primary governing regulator

Question 14

Audit Quality What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

Accepted Answer

There are five primary drivers of audit

Question 15

Internal auditing only provides assurance about internal control effectiveness.

Accepted Answer

A) True 
 B)False

Question 16

Auditors should conduct their work with an attitude of professional skepticism.

Accepted Answer

A) True 
 B)False

Question 17

Overview of Financial Statement Audit Define auditing and discuss how its components fit into an overview of a financial statement audit.

Accepted Answer

Financial statement auditing has been de

Question 18

Internal auditors are considered part of the audit committee.

Accepted Answer

A) True 
 B)False

Question 19

The external auditors are only responsible for their opinion of the financial statements and internal controls.

Accepted Answer

A) True 
 B)False

Question 20

Requirements of auditors in public accounting Recent landscape changes in accounting and auditing developed from corporate fraud and,arguably,auditor failure.In order to continually lead and adapt to the dynamics of regulation,principles based accounting practices and auditing standards,what types of skills and traits are auditors required to possess?

Accepted Answer

In addition to integrity,ethics and inde

Users rely on the auditors' independent assessment of financial statement presentation because few users have direct knowledge of the company's operations.

Attributes of Auditors Discuss the three or more attributes that an auditors possess in order to maintain credibility.Explain the importance of these attributes to the audit.

Bondholders are one of the users of financial statements.

What must an auditor do in an audit?

Which of the following is a driver of audit quality?

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

An integrated audit requires the auditor to assess the effectiveness of internal controls.

Which one of the following is not a key attribute needed to perform an audit?

Why does the AICPA remain a valuable organization?

Regulatory and professional bodies Write the full name of the following regulatory and professional acronyms and describe the function of each entity: PCAOB AICPA SEC IIA FASB

Which of the following is not required of auditors to satisfying the interdependence standards?

Audit Quality What is audit quality?

Professional and regulatory organizations Identify at least four professional or regulatory organizations.Explain how and why they assist and/or monitor the audit and assurance profession.

Audit Quality What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

Internal auditing only provides assurance about internal control effectiveness.

Auditors should conduct their work with an attitude of professional skepticism.

Overview of Financial Statement Audit Define auditing and discuss how its components fit into an overview of a financial statement audit.

Internal auditors are considered part of the audit committee.

The external auditors are only responsible for their opinion of the financial statements and internal controls.

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

Users rely on the auditors' independent assessment of financial statement presentation because few users have direct knowledge of the company's operations.

Attributes of Auditors Discuss the three or more attributes that an auditors possess in order to maintain credibility.Explain the importance of these attributes to the audit.

Bondholders are one of the users of financial statements.

What must an auditor do in an audit?

Which of the following is a driver of audit quality?

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

An integrated audit requires the auditor to assess the effectiveness of internal controls.

Which one of the following is not a key attribute needed to perform an audit?

Why does the AICPA remain a valuable organization?

Regulatory and professional bodies Write the full name of the following regulatory and professional acronyms and describe the function of each entity: PCAOB AICPA SEC IIA FASB

Which of the following is not required of auditors to satisfying the interdependence standards?

Audit Quality What is audit quality?

Professional and regulatory organizations Identify at least four professional or regulatory organizations.Explain how and why they assist and/or monitor the audit and assurance profession.

Audit Quality What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

Internal auditing only provides assurance about internal control effectiveness.

Auditors should conduct their work with an attitude of professional skepticism.

Overview of Financial Statement Audit Define auditing and discuss how its components fit into an overview of a financial statement audit.

Internal auditors are considered part of the audit committee.

The external auditors are only responsible for their opinion of the financial statements and internal controls.

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