Exam 1: Auditing: Integral to the Economy

The internal audit profession adheres exclusively to standards set by the Public Company Accounting Oversight Board.

Auditors need only understand the rules of accounting as the principles of accounting are outdated.

Which of the following is most often the client's preferred audit report?

Which one of the following is not an example of an independence violation?

Audit quality is driven,in part,by the audit firm's culture.

Audited financial statements should be free from all errors and fraud.

An "integrated audit" includes an audit of what?

Audited financial statements should be presented fairly according to the substance of GAAP.

What can users can reasonably expect from the audited financial statements?

Auditing is the process of verifying the accuracy of the financial statements.

Which type of auditor may perform a financial statement audit?

Who is responsible for internal controls within an organization?

Internal controls are the responsibility of management.

About what should an auditor assure audit committees have an accurate understanding?

A quality audit is one performed "in accordance with generally accepted auditing standards (GAAS)to provide reasonable assurance that the audited financial statements and related disclosures are presented in accordance with generally accepted accounting principles (GAAP)and (2)are not materially misstated whether due to errors or fraud."

Though often relying on the FASB,the SEC has authority to establish GAAP for publicly traded companies.

An Integrated Audit Report provides opinion(s)on which of the following?

Auditors of public companies need not adhere to the requirements of statutory or regulatory organizations.

Which of the following procedures do third-party users of the audit report not expect the auditor to perform?

The purpose of auditing is to improve the quality of the information provided.