Question 1

Which of the following is a private professional membership organization of CPAs representing the accounting profession?

Accepted Answer

A) AICPA 
B) PCAOB 
C) ASB 
D) IAASB 
A) AICPA 
B) PCAOB 
C) ASB 
D) IAASB

Question 2

One of the factors that impacts auditor performance is _______.

Accepted Answer

audit standards ethi

Question 3

Which of the following statements is true?

Accepted Answer

A) Often interested users, like banks, ask private companies or non-users to provide audited financial statements. 
B) Public users are required to have three audits a year. 
C) Public users are required to have an audit of internal financial forecast reports (IFFRs). 
D) For efficiency purposes, the three required audits for public companies are performed at the same time. 
A) Often interested users, like banks, ask private companies or non-users to provide audited financial statements. 
B) Public users are required to have three audits a year. 
C) Public users are required to have an audit of internal financial forecast reports (IFFRs). 
D) For efficiency purposes, the three required audits for public companies are performed at the same time.

Question 4

Which of the following is a characteristic of an audit of historical financial statements?

Accepted Answer

A) It provides limited assurance that no material modifications need to be made to the financial statements. 
B) It expresses an opinion on the fair presentation of the financial statements. 
C) It is the same as an examination of internal controls. 
D) It is broader than a review engagement. 
A) It provides limited assurance that no material modifications need to be made to the financial statements. 
B) It expresses an opinion on the fair presentation of the financial statements. 
C) It is the same as an examination of internal controls. 
D) It is broader than a review engagement.

Question 5

Assurance, attestation, and auditing are similar because all three represent a common process of _______.

Accepted Answer

A) taking information prepared by someone else and comparing that information to an established set of criteria. 
B) compiling and reviewing historical financial statements and providing non-financial information. 
C) compiling historical financial statements and providing non-financial information and web security. 
D) reviewing financial forecast, examining internal controls, and providing website security. 
A) taking information prepared by someone else and comparing that information to an established set of criteria. 
B) compiling and reviewing historical financial statements and providing non-financial information. 
C) compiling historical financial statements and providing non-financial information and web security. 
D) reviewing financial forecast, examining internal controls, and providing website security.

Question 6

GAAP and IFRS are examples of applicable financial reporting framework.

Accepted Answer

A) True 
 B)False

Question 7

Economic conditions impact _______.

Accepted Answer

A) financial statement user's expectations 
B) auditor performance 
C) both financial statement user's expectations and auditor performance 
D) neither financial statement user's expectations not auditor performance 
A) financial statement user's expectations 
B) auditor performance 
C) both financial statement user's expectations and auditor performance 
D) neither financial statement user's expectations not auditor performance

Question 8

Those charged with governance are the ________.

Accepted Answer

A) CEO, CFO, and COO 
B) board of directors and management of an entity 
C) stockholders 
D) auditors 
A) CEO, CFO, and COO 
B) board of directors and management of an entity 
C) stockholders 
D) auditors

Question 9

Which statement is correct as to financial statement audit reports for public versus private companies?

Accepted Answer

A) There is a standard report for the audit of public company financial statements and a standard report for the audit of private company financial statements. 
B) There is a standard report for the audit of public company financial statements but none for auditing private company financial statements. 
C) There is a standard report for the audit of private company financial statements but none for auditing public company financial statements. 
D) There is no distinction between standard reports for the audit of financial statements, regardless of whether the company is private or public. 
A) There is a standard report for the audit of public company financial statements and a standard report for the audit of private company financial statements. 
B) There is a standard report for the audit of public company financial statements but none for auditing private company financial statements. 
C) There is a standard report for the audit of private company financial statements but none for auditing public company financial statements. 
D) There is no distinction between standard reports for the audit of financial statements, regardless of whether the company is private or public.

Question 10

The audit expectation gap occurs when there is a difference between the expectations of the ________.

Accepted Answer

A) auditors and financial statement users 
B) auditors and company under review 
C) company under review and financial statement users 
D) generally accepted accounting principles and auditors 
A) auditors and financial statement users 
B) auditors and company under review 
C) company under review and financial statement users 
D) generally accepted accounting principles and auditors

Question 11

What type of audit is concerned with the economy, efficiency and effectiveness of an organization's activities?

Accepted Answer

A) A compliance audit 
B) An operational audit 
C) A financial statement audit 
D) An integrated audit 
A) A compliance audit 
B) An operational audit 
C) A financial statement audit 
D) An integrated audit

Question 12

Business valuation falls within the purview of non-assurance services.

Accepted Answer

A) True 
 B)False

Question 13

When auditors determine that the financial statements of a public company are presented fairly in accordance with the applicable financial reporting framework, they issue a type of report that PCAOB standards call "the standard clean report."

Accepted Answer

A) True 
 B)False

Question 14

Your client, McCoy Manufacturing, wants an audit so he can tell his bank that his financial statements have been certified to be 100% accurate.Explain why you, the auditor, are unable to provide absolute assurance on the accuracy of the financial statements.

Accepted Answer

The responsibility of the auditor is to

Question 15

Examination of non-financial information falls under _______ services and outside of_______ services.

Accepted Answer

A) assurance; audit 
B) attestation; assurance 
C) audit; assurance 
D) attestation; audit 
A) assurance; audit 
B) attestation; assurance 
C) audit; assurance 
D) attestation; audit

Question 16

Legislation impacts _______.

Accepted Answer

A) auditor performance 
B) financial statement user's expectations 
C) both financial statement user's expectations and auditor performance 
D) neither financial statement user's expectations not auditor performance 
A) auditor performance 
B) financial statement user's expectations 
C) both financial statement user's expectations and auditor performance 
D) neither financial statement user's expectations not auditor performance

Question 17

If the auditors do not have access to all the information relevant to the audit, this is known as a(an) ________.

Accepted Answer

A) material misstatement 
B) limitation in scope 
C) estimate 
D) sampling technique 
A) material misstatement 
B) limitation in scope 
C) estimate 
D) sampling technique

Question 18

As attestation services encompass more than just the inspection of historical financial statements, the term _______ is used rather than _______.

Accepted Answer

A) practitioner; auditor 
B) auditor; practitioner 
C) intended user; auditor 
D) intended user; practitioner 
A) practitioner; auditor 
B) auditor; practitioner 
C) intended user; auditor 
D) intended user; practitioner

Question 19

When auditors determine that the financial statements of a private firm are presented fairly in accordance with the applicable financial reporting framework, they issue the standard _______ report, which is often referred to as a "_______" report.

Accepted Answer

A) unmodified, clean 
B) qualified, clean 
C) modified, rough 
D) unqualified, rough 
A) unmodified, clean 
B) qualified, clean 
C) modified, rough 
D) unqualified, rough

Question 20

If auditors conclude the company did not maintain effective ICFR over the period under audit, it would mean the auditors discovered a/an _______ in the client's ICFR.

Accepted Answer

A) material weakness 
B) audit risk 
C) reasonable assurance 
D) professional skepticism 
A) material weakness 
B) audit risk 
C) reasonable assurance 
D) professional skepticism

Which of the following is a private professional membership organization of CPAs representing the accounting profession?

One of the factors that impacts auditor performance is _______.

Which of the following statements is true?

Which of the following is a characteristic of an audit of historical financial statements?

Assurance, attestation, and auditing are similar because all three represent a common process of _______.

GAAP and IFRS are examples of applicable financial reporting framework.

Economic conditions impact _______.

Those charged with governance are the ________.

Which statement is correct as to financial statement audit reports for public versus private companies?

The audit expectation gap occurs when there is a difference between the expectations of the ________.

What type of audit is concerned with the economy, efficiency and effectiveness of an organization's activities?

Business valuation falls within the purview of non-assurance services.

When auditors determine that the financial statements of a public company are presented fairly in accordance with the applicable financial reporting framework, they issue a type of report that PCAOB standards call "the standard clean report."

Your client, McCoy Manufacturing, wants an audit so he can tell his bank that his financial statements have been certified to be 100% accurate.Explain why you, the auditor, are unable to provide absolute assurance on the accuracy of the financial statements.

Examination of non-financial information falls under _ services and outside of_ services.

Legislation impacts _______.

If the auditors do not have access to all the information relevant to the audit, this is known as a(an) ________.

As attestation services encompass more than just the inspection of historical financial statements, the term _ is used rather than _.

When auditors determine that the financial statements of a private firm are presented fairly in accordance with the applicable financial reporting framework, they issue the standard _ report, which is often referred to as a "_" report.

If auditors conclude the company did not maintain effective ICFR over the period under audit, it would mean the auditors discovered a/an _______ in the client's ICFR.

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Data Analyticsoverview and Application

Risk Responseperforming Tests of Controls

Risk Responseperforming Substantive Procedures

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters

Exam 1: Introduction and Overview of Audit and Assurance

Which of the following is a private professional membership organization of CPAs representing the accounting profession?

One of the factors that impacts auditor performance is _______.

Which of the following statements is true?

Which of the following is a characteristic of an audit of historical financial statements?

Assurance, attestation, and auditing are similar because all three represent a common process of _______.

GAAP and IFRS are examples of applicable financial reporting framework.

Economic conditions impact _______.

Those charged with governance are the ________.

Which statement is correct as to financial statement audit reports for public versus private companies?

The audit expectation gap occurs when there is a difference between the expectations of the ________.

What type of audit is concerned with the economy, efficiency and effectiveness of an organization's activities?

Business valuation falls within the purview of non-assurance services.

When auditors determine that the financial statements of a public company are presented fairly in accordance with the applicable financial reporting framework, they issue a type of report that PCAOB standards call "the standard clean report."

Your client, McCoy Manufacturing, wants an audit so he can tell his bank that his financial statements have been certified to be 100% accurate.Explain why you, the auditor, are unable to provide absolute assurance on the accuracy of the financial statements.

Examination of non-financial information falls under _______ services and outside of_______ services.

Legislation impacts _______.

If the auditors do not have access to all the information relevant to the audit, this is known as a(an) ________.

As attestation services encompass more than just the inspection of historical financial statements, the term _______ is used rather than _______.

When auditors determine that the financial statements of a private firm are presented fairly in accordance with the applicable financial reporting framework, they issue the standard _______ report, which is often referred to as a "_______" report.

If auditors conclude the company did not maintain effective ICFR over the period under audit, it would mean the auditors discovered a/an _______ in the client's ICFR.

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Data Analyticsoverview and Application

Risk Responseperforming Tests of Controls

Risk Responseperforming Substantive Procedures

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters

Examination of non-financial information falls under _ services and outside of_ services.

As attestation services encompass more than just the inspection of historical financial statements, the term _ is used rather than _.

When auditors determine that the financial statements of a private firm are presented fairly in accordance with the applicable financial reporting framework, they issue the standard _ report, which is often referred to as a "_" report.