Question 1

Congress authorized which of the following organizations to establish generally accepted accounting principles?

Accepted Answer

A) SEC. 
B) APB. 
C) AICPA. 
D) FASB. 
A) SEC. 
B) APB. 
C) AICPA. 
D) FASB.

Question 2

Which organization issued the Internal Control,Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

Accepted Answer

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

Question 3

The PCAOB is responsible for conducting audits in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not part of the systematic process called auditing?

Accepted Answer

A) Communicating results of the audit to users. 
B) Procuring and evaluating evidence. 
C) Providing important managerial decisions for a client. 
D) Comparing evidence regarding assertions to certain established criteria. 
A) Communicating results of the audit to users. 
B) Procuring and evaluating evidence. 
C) Providing important managerial decisions for a client. 
D) Comparing evidence regarding assertions to certain established criteria.

Question 5

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

Accepted Answer

A) True 
 B)False

Question 6

What is the role of the court system for the auditing profession?

Accepted Answer

A) To act as a quality-control mechanism. 
B) To provide guidance on unclear legislation. 
C) To punish audit firms that issue the wrong audit report. 
D) All of the above. 
A) To act as a quality-control mechanism. 
B) To provide guidance on unclear legislation. 
C) To punish audit firms that issue the wrong audit report. 
D) All of the above.

Question 7

The Center for Audit Quality has the primary authority to set auditing standards.

Accepted Answer

A) True 
 B)False

Question 8

An auditor must have a good understanding of the risks associated with a client's industry in order to ensure that the financial statements reflect the underlying substance of accounting transactions and the economic effects of such transactions.

Accepted Answer

A) True 
 B)False

Question 9

The American Institute of CPAs sets auditing standards for non-publicly traded companies.

Accepted Answer

A) True 
 B)False

Question 10

In an audit,management is considered the "client".

Accepted Answer

A) True 
 B)False

Question 11

Only the Big 4 audit firms can conduct audits of private companies in the United States.

Accepted Answer

A) True 
 B)False

Question 12

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

Accepted Answer

A) True 
 B)False

Question 13

What document communicates the conclusions of the financial statement audit?

Accepted Answer

A) The financial statement. 
B) Written management assertion. 
C) The audit report. 
D) None of the above. 
A) The financial statement. 
B) Written management assertion. 
C) The audit report. 
D) None of the above.

Question 14

Who does the public expect the auditor will recognize as the primary users of the audited financial statements?

Accepted Answer

A) Their clients. 
B) The Public Company Accounting Oversight Board. 
C) Members of management. 
D) Third-party users. 
A) Their clients. 
B) The Public Company Accounting Oversight Board. 
C) Members of management. 
D) Third-party users.

Question 15

To conduct an audit,what must an auditor do?

Accepted Answer

A) Comply with relevant ethical standards. 
B) Exercise perfect judgment. 
C) Obtain sufficient appropriate evidence to provide absolute assurance. 
D) All of the above. 
A) Comply with relevant ethical standards. 
B) Exercise perfect judgment. 
C) Obtain sufficient appropriate evidence to provide absolute assurance. 
D) All of the above.

Question 16

Auditing exists because users need unbiased information on which to assess management performance and make economic decisions.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not a management expectation for independent auditors?

Accepted Answer

A) An outside source of expertise on accounting matters. 
B) Individuals who perform tests and draw conclusions on assertions. 
C) A participant in management decision making. 
D) A provider of a written communication. 
A) An outside source of expertise on accounting matters. 
B) Individuals who perform tests and draw conclusions on assertions. 
C) A participant in management decision making. 
D) A provider of a written communication.

Question 18

Which of the following groups is not a user of the audited financial statements?

Accepted Answer

A) Management. 
B) Vendors. 
C) Retired Employees. 
D) Competitors. 
A) Management. 
B) Vendors. 
C) Retired Employees. 
D) Competitors.

Question 19

CPA certificates for auditors are issued by state boards of accountancy.

Accepted Answer

A) True 
 B)False

Question 20

The Need for Audited Financial Statements Why do financial statement users need independent assurance about information provided by management?

Accepted Answer

The need for independent assurance arise

Congress authorized which of the following organizations to establish generally accepted accounting principles?

Which organization issued the Internal Control,Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

The PCAOB is responsible for conducting audits in the United States.

Which of the following is not part of the systematic process called auditing?

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

What is the role of the court system for the auditing profession?

The Center for Audit Quality has the primary authority to set auditing standards.

An auditor must have a good understanding of the risks associated with a client's industry in order to ensure that the financial statements reflect the underlying substance of accounting transactions and the economic effects of such transactions.

The American Institute of CPAs sets auditing standards for non-publicly traded companies.

In an audit,management is considered the "client".

Only the Big 4 audit firms can conduct audits of private companies in the United States.

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

What document communicates the conclusions of the financial statement audit?

Who does the public expect the auditor will recognize as the primary users of the audited financial statements?

To conduct an audit,what must an auditor do?

Auditing exists because users need unbiased information on which to assess management performance and make economic decisions.

Which one of the following is not a management expectation for independent auditors?

Which of the following groups is not a user of the audited financial statements?

CPA certificates for auditors are issued by state boards of accountancy.

The Need for Audited Financial Statements Why do financial statement users need independent assurance about information provided by management?

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

Congress authorized which of the following organizations to establish generally accepted accounting principles?

Which organization issued the Internal Control,Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

The PCAOB is responsible for conducting audits in the United States.

Which of the following is not part of the systematic process called auditing?

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

What is the role of the court system for the auditing profession?

The Center for Audit Quality has the primary authority to set auditing standards.

An auditor must have a good understanding of the risks associated with a client's industry in order to ensure that the financial statements reflect the underlying substance of accounting transactions and the economic effects of such transactions.

The American Institute of CPAs sets auditing standards for non-publicly traded companies.

In an audit,management is considered the "client".

Only the Big 4 audit firms can conduct audits of private companies in the United States.

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

What document communicates the conclusions of the financial statement audit?

Who does the public expect the auditor will recognize as the primary users of the audited financial statements?

To conduct an audit,what must an auditor do?

Auditing exists because users need unbiased information on which to assess management performance and make economic decisions.

Which one of the following is not a management expectation for independent auditors?

Which of the following groups is not a user of the audited financial statements?

CPA certificates for auditors are issued by state boards of accountancy.

The Need for Audited Financial Statements Why do financial statement users need independent assurance about information provided by management?

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