Question 1

Firm regulation occurs within a CPA firm

Accepted Answer

A) True 
 B)False  True

Question 2

PCAOB stands for the Public Companies Accounting Oversight Board

Accepted Answer

A) True 
 B)False  True

Question 3

The primary functions of the state societies relate to the licensing of CPAs to practice
within the state.

Accepted Answer

A) True 
 B)False  False

Question 4

Statement of Quality Control Standards No. 1 mandates that a CPA firm shall have a system of Quality Control

Accepted Answer

A) True 
 B)False

Question 5

A financial statement audit made in accordance with GAAS is subject to a number of inherent limitations. Briefly discuss (a) the two important economic limits and (b) the two important limitations associated with the established accounting framework.

Accepted Answer

(a) 1. Reasonable cost. A limitat

Question 6

Statement on Quality Control Standards No. 2 identifies certain quality control elements that should be considered when performing which types of services?

Accepted Answer

A)  auditing, accounting, and review services 
B)  auditing, tax, and review services 
C)  accounting, tax, and review services 
D)  auditing, accounting, and tax services 
E)  auditing, tax, and consulting services 
A)  auditing, accounting, and review services 
B)  auditing, tax, and review services 
C)  accounting, tax, and review services 
D)  auditing, accounting, and tax services 
E)  auditing, tax, and consulting services

Question 7

The US Senate enacted the Sarbanes-Oxley Act of 2002.

Accepted Answer

A) True 
 B)False

Question 8

Internal auditors are primarily involved with:

Accepted Answer

A)  compliance audits. 
B)  operational audits. 
C)  compliance audits and operational audits. 
D)  financial statement audits. 
E)  governmental audits. 
A)  compliance audits. 
B)  operational audits. 
C)  compliance audits and operational audits. 
D)  financial statement audits. 
E)  governmental audits.

Question 9

Match between columns
                        Premises: The results of such an audit are distributed to a wide spectrum of users such as creditors, stockholders, regulatory agencies, and the general public.
This type of audit is often called a performance audit.
This audit may be based on criteria established by creditors.
The scope of such an audit may encompass all the activities of a department.
This audit relates to fair presentation of statements in accordance with GAAP.

Accepted Answer

The Answer of FSA- Financial Statement  Audit and CA- is...

Question 10

The GAO has the authority to issue standards pertaining to audits of governmental organizations and other entities that receive federal assistance.

Accepted Answer

A) True 
 B)False

Question 11

Which one of the following types of services offered by a CPA is not an attest service?

Accepted Answer

A)  examination 
B)  review 
C)  performing agreed-upon procedures 
D)  audit 
E)  accounting 
A)  examination 
B)  review 
C)  performing agreed-upon procedures 
D)  audit 
E)  accounting

Question 12

The statement that the reviewer "is not aware of any material modifications that should be made to the statements in order for them to be in conformity with GAAP" is known as:

Accepted Answer

A)  reasonable assurance. 
B)  negligent performance. 
C)  negative assurance. 
D)  necessary ignorance. 
E)  positive assurance. 
A)  reasonable assurance. 
B)  negligent performance. 
C)  negative assurance. 
D)  necessary ignorance. 
E)  positive assurance.

Question 13

Which one of the following terms is not part of the definition of auditing?

Accepted Answer

A)  communicating the results 
B)  interested users 
C)  systematic process 
D)  evaluating evidence 
E)  auditing standards 
A)  communicating the results 
B)  interested users 
C)  systematic process 
D)  evaluating evidence 
E)  auditing standards

Question 14

Statement on Quality Control Standards (SQCS) No. 2 identifies six quality control elements.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is the service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party?

Accepted Answer

A)  consulting service 
B)  attest service 
C)  accounting service 
D)  compilation service 
E)  examination service 
A)  consulting service 
B)  attest service 
C)  accounting service 
D)  compilation service 
E)  examination service

Question 16

The securities acts give the SEC the power to establish GAAP for all domestic companies.

Accepted Answer

A) True 
 B)False

Question 17

The three types of auditors are listed below. Indicate the category to which each statement belongs by placing the following letters in the spaces provided:IND:Independent Auditors,
INT:Internal Auditors, or
GOV:Government Auditors.
1.They perform audits as employees of various local , state, and federal agencies.
2.They perform audits as employees of the companies they audit.
3.They render professional auditing services to their clients.
4.They are mainly involved with compliance and operational audits.
5.They perform independent financial statement audits.

Accepted Answer

1.GOV
2.IN

Question 18

The PCAOB conducts annual inspections of firms that regularly provide audit reports for over 1000 public companies.

Accepted Answer

A) True 
 B)False

Question 19

The use of negative assurance in a report by a CPA associated with a set of financial statements would be appropriate only in:

Accepted Answer

A)  examinations. 
B)  reviews. 
C)  agreed-upon procedures. 
D)  reviews and agreed-upon procedures. 
E)  audits. 
A)  examinations. 
B)  reviews. 
C)  agreed-upon procedures. 
D)  reviews and agreed-upon procedures. 
E)  audits.

Question 20

The public accounting profession's national professional organization is the AICPA.

Accepted Answer

A) True 
 B)False

Firm regulation occurs within a CPA firm

PCAOB stands for the Public Companies Accounting Oversight Board

The primary functions of the state societies relate to the licensing of CPAs to practice within the state.

Statement of Quality Control Standards No. 1 mandates that a CPA firm shall have a system of Quality Control

A financial statement audit made in accordance with GAAS is subject to a number of inherent limitations. Briefly discuss (a) the two important economic limits and (b) the two important limitations associated with the established accounting framework.

Statement on Quality Control Standards No. 2 identifies certain quality control elements that should be considered when performing which types of services?

The US Senate enacted the Sarbanes-Oxley Act of 2002.

Internal auditors are primarily involved with:

The GAO has the authority to issue standards pertaining to audits of governmental organizations and other entities that receive federal assistance.

Which one of the following types of services offered by a CPA is not an attest service?

The statement that the reviewer "is not aware of any material modifications that should be made to the statements in order for them to be in conformity with GAAP" is known as:

Which one of the following terms is not part of the definition of auditing?

Statement on Quality Control Standards (SQCS) No. 2 identifies six quality control elements.

Which one of the following is the service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party?

The securities acts give the SEC the power to establish GAAP for all domestic companies.

The PCAOB conducts annual inspections of firms that regularly provide audit reports for over 1000 public companies.

The use of negative assurance in a report by a CPA associated with a set of financial statements would be appropriate only in:

The public accounting profession's national professional organization is the AICPA.

Financial Statement Audits and

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

Filters

Exam 1: Auditing and the Public Accounting

Firm regulation occurs within a CPA firm

PCAOB stands for the Public Companies Accounting Oversight Board

The primary functions of the state societies relate to the licensing of CPAs to practice within the state.

Statement of Quality Control Standards No. 1 mandates that a CPA firm shall have a system of Quality Control

A financial statement audit made in accordance with GAAS is subject to a number of inherent limitations. Briefly discuss (a) the two important economic limits and (b) the two important limitations associated with the established accounting framework.

Statement on Quality Control Standards No. 2 identifies certain quality control elements that should be considered when performing which types of services?

The US Senate enacted the Sarbanes-Oxley Act of 2002.

Internal auditors are primarily involved with:

The GAO has the authority to issue standards pertaining to audits of governmental organizations and other entities that receive federal assistance.

Which one of the following types of services offered by a CPA is not an attest service?

The statement that the reviewer "is not aware of any material modifications that should be made to the statements in order for them to be in conformity with GAAP" is known as:

Which one of the following terms is not part of the definition of auditing?

Statement on Quality Control Standards (SQCS) No. 2 identifies six quality control elements.

Which one of the following is the service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party?

The securities acts give the SEC the power to establish GAAP for all domestic companies.

The PCAOB conducts annual inspections of firms that regularly provide audit reports for over 1000 public companies.

The use of negative assurance in a report by a CPA associated with a set of financial statements would be appropriate only in:

The public accounting profession's national professional organization is the AICPA.

Financial Statement Audits and

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

Filters