Match between columns Premises: An understanding of the internal control structure is to be obtained. The auditor should be unbiased during the examination. The financial statements should be in conformity with GAAP. The financial statements contain adequate disclosures. The auditor should have adequate technical training and proficiency as an auditor. Sufficient competent evidential matter is to be obtained. Due professional care is to be exercised by the auditor. The work should be adequately planned and assistants should be properly supervised. The report shall contain an expression of opinion. Circumstances in which GAAP have not been consistently observed should be identified.

The Answer of G-General and F-Field work and R-Reporting is...

Match between columns Premises: We have audited statements of income, retained earnings, and cash flows in accordance with GAAS in conformity with GAAP Our responsibility is to express an opinion responsibility of the Company’s management statements are free of material misstatement results of its operations and its cash flows in all material respects examining, on a test basis, assessing the accounting principles used evaluating the overall financial statement presentation financial position of X Company supporting the amounts and disclosures in the financial statements a reasonable basis for our opinion

The Answer of I- Introductory. and S- Scope. and O- is...

Exam 2: Financial Statement Audits and

When the auditor concludes that the financial statements are materially misstated and are not prepared in accordance with GAAP, the auditor should revise the financial statements.

Free

(True/False)

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Question 1

Correct Answer:

Verified

False

It is important for the auditor to be independent, neutral, and ____________ in performing an audit.

Free

(Multiple Choice)

5.0/5

(36)

Question 2

Correct Answer:

Verified

SAS 54, Illegal Acts by Clients, indicates that the auditor's responsibility for misstatements resulting from illegal acts having a direct and material effect on the determination of financial statement amounts is the same as for errors or fraud.

Free

(True/False)

4.8/5

(28)

Question 3

Correct Answer:

Verified

True

The essence of the due care standard is that the auditor should not be guilty of:

(Multiple Choice)

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Question 4

SAS 54 lists a number of items that may provide evidence concerning possible illegal acts. They include which one of the following?

(Multiple Choice)

4.9/5

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Question 5

In the opinion paragraph of the standard audit report, the phrase "in our opinion," really means:

(Multiple Choice)

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Question 6

Auditing is based on the assumption that financial data are verifiable. Data are verifiable when two or more qualified individuals,

(Multiple Choice)

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Question 7

The third general standard requires the auditor to act in good faith and not to be negligent in an audit.

(True/False)

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Question 8

Which one of the following is an indicator that may indicate an increased risk of illegal acts?

(Multiple Choice)

4.9/5

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Question 9

The ten generally accepted auditing standards are listed below in paraphrased form. Indicate the category to which each statement belongs.

An understanding of the internal control structure is to be obtained.

G-General

The auditor should be unbiased during the examination.

F-Field work

The financial statements should be in conformity with GAAP.

R-Reporting

Correct Answer:

Verified

An understanding of the internal control structure is to be obtained.

The auditor should be unbiased during the examination.

The financial statements should be in conformity with GAAP.

(Matching)

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Question 10

Which of the following organizations does the Auditing and Attest Standards Team belong to?

(Multiple Choice)

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Question 11

In the standard audit report, the auditor's opinion on fairness pertains:

(Multiple Choice)

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Question 12

The reader of a private company financial statement obtains reasonable assurance about the system of internal control over financial reporting.

(True/False)

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Question 13

The ASB has members that represent small and large practice units, state boards of accountancy, academic, government, and the public.

(True/False)

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Question 14

Words and phrases from the auditor’s standard report are given below. Indicate where the item should appear in the report .

We have audited

I- Introductory.

statements of income, retained earnings, and cash flows

S- Scope.

in accordance with GAAS

O- Opinion.

Correct Answer:

Verified

We have audited

statements of income, retained earnings, and cash flows

in accordance with GAAS

(Matching)

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Question 15

The second standard of field work requires the auditor to "understand the entity and its environment, including internal control." List the five different areas this standard requires the auditor to understand.

(Essay)

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Question 16

It is permissible under GAAS for the internal auditor to provide direct assistance to the independent auditor.

(True/False)

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Question 17

According to SAS 54, the auditor's responsibility for illegal acts having a direct and material effect on the determination of financial statement amounts is:

(Multiple Choice)

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Question 18

The concepts of materiality and risk affect the application of auditing standards.

(True/False)

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Question 19

If the financial statements contain a departure from GAAP, the auditor should express:

(Multiple Choice)

4.9/5

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Question 20

Showing 1 - 20 of 84

When the auditor concludes that the financial statements are materially misstated and are not prepared in accordance with GAAP, the auditor should revise the financial statements.

It is important for the auditor to be independent, neutral, and ____________ in performing an audit.

SAS 54, Illegal Acts by Clients, indicates that the auditor's responsibility for misstatements resulting from illegal acts having a direct and material effect on the determination of financial statement amounts is the same as for errors or fraud.

The essence of the due care standard is that the auditor should not be guilty of:

SAS 54 lists a number of items that may provide evidence concerning possible illegal acts. They include which one of the following?

In the opinion paragraph of the standard audit report, the phrase "in our opinion," really means:

Auditing is based on the assumption that financial data are verifiable. Data are verifiable when two or more qualified individuals,

The third general standard requires the auditor to act in good faith and not to be negligent in an audit.

Which one of the following is an indicator that may indicate an increased risk of illegal acts?

Which of the following organizations does the Auditing and Attest Standards Team belong to?

In the standard audit report, the auditor's opinion on fairness pertains:

The reader of a private company financial statement obtains reasonable assurance about the system of internal control over financial reporting.

The ASB has members that represent small and large practice units, state boards of accountancy, academic, government, and the public.

The second standard of field work requires the auditor to "understand the entity and its environment, including internal control." List the five different areas this standard requires the auditor to understand.

It is permissible under GAAS for the internal auditor to provide direct assistance to the independent auditor.

According to SAS 54, the auditor's responsibility for illegal acts having a direct and material effect on the determination of financial statement amounts is:

The concepts of materiality and risk affect the application of auditing standards.

If the financial statements contain a departure from GAAP, the auditor should express:

Auditing and the Public Accounting

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

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