Question 1

Monitoring is an ongoing process whereby a firm evaluates the effectiveness of the other six elements of quality control.

Accepted Answer

A) True 
 B)False

Question 2

For each of the following types of financial statement audits, indicate who the interested users may be.
1. Financial Statement
2. Compliance
3. Audit report on internal control
4. Operational

Accepted Answer

1. Investors, creditors and ot

Question 3

Of the following entities, which one is not associated with the public accounting profession?

Accepted Answer

A)  state boards of accountancy 
B)  the FASB 
C)  state societies 
D)  practice units 
E)  the CASB 
A)  state boards of accountancy 
B)  the FASB 
C)  state societies 
D)  practice units 
E)  the CASB

Question 4

Compilation is an example of which one of the following types of services?

Accepted Answer

A)  auditing 
B)  review 
C)  consulting 
D)  examination 
E)  accounting 
A)  auditing 
B)  review 
C)  consulting 
D)  examination 
E)  accounting

Question 5

The subject matter of auditing consists of:

Accepted Answer

A)  assertions. 
B)  established criteria. 
C)  evidence. 
D)  written reports. 
E)  compliance. 
A)  assertions. 
B)  established criteria. 
C)  evidence. 
D)  written reports. 
E)  compliance.

Question 6

Personnel management addresses a variety of procedures within a CPA firm for hiring, promoting, and training accounting professionals.

Accepted Answer

A) True 
 B)False

Question 7

Assurance services are independent professional services that improve the quality of information, or its context, for decision makers.

Accepted Answer

A) True 
 B)False

Question 8

Identify and differentiate between the three types of audits.

Accepted Answer

Financial statement audits involv

Question 9

There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the:

Accepted Answer

A)  users of the statements may not fully understand the consequences of their actions. 
B)  auditor must anticipate all possible consequences of the report issued. 
C)  impact of using different accounting methods may not be fully understood by the users of the statements. 
D)  financial statements are used for important decisions. 
E)  financial statements were prepared in accordance with GAAS. 
A)  users of the statements may not fully understand the consequences of their actions. 
B)  auditor must anticipate all possible consequences of the report issued. 
C)  impact of using different accounting methods may not be fully understood by the users of the statements. 
D)  financial statements are used for important decisions. 
E)  financial statements were prepared in accordance with GAAS.

Question 10

The state board of accountancy regularly asks firms to submit their peer review letters as part of obtaining a license for the firm to perform audit and attest services.

Accepted Answer

A) True 
 B)False

Question 11

Which one of the following was not listed as an inherent limitation of a financial statement audit?

Accepted Answer

A)  accounting estimates 
B)  reasonable length of time 
C)  alternative accounting principles 
D)  reasonable cost 
E)  level of complexity 
A)  accounting estimates 
B)  reasonable length of time 
C)  alternative accounting principles 
D)  reasonable cost 
E)  level of complexity

Question 12

Which one of the following consists primarily of inquiries of an entity's management and comparative analyses of financial information?

Accepted Answer

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

Question 13

Identify the entities that are associated with the public accounting profession that are (1) private sector organizations and those that are (2) public sector organizations.

Accepted Answer

The entities that are (1) private sector

Question 14

Over the years the demand for auditing has been reduced by professional managers who misled investors by materially misstating the financial performance of their company's financial statements.

Accepted Answer

A) True 
 B)False

Question 15

Match between columns
                        Premises: They perform audits as employees of various local , state, and federal agencies.
They perform audits as employees of the companies they audit.
They render professional auditing services to their clients.
They are mainly involved with compliance and operational audits.
They perform independent financial statement audits.

Accepted Answer

The Answer of IND- Independent Auditors and INT- Internal Auditors is...

Question 16

Indicate for each of the following primary activities the component of the multilevel regulatory framework to which it relates.
1.Establish quality review programs and conduct quality reviews.
2.Establish and enforce rules of professional conduct.
3.Granting licenses to auditors.
4.Supervise and review work done on each audit.

Accepted Answer

1.Inspection and pee

Question 17

An auditor would be most likely to issue a "summary of findings" in connection with which one of the following types of services?

Accepted Answer

A)  a financial statement audit 
B)  consulting services 
C)  an operational audit 
D)  a review 
E)  accounting services 
A)  a financial statement audit 
B)  consulting services 
C)  an operational audit 
D)  a review 
E)  accounting services

Question 18

An assurance service is one 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) True 
 B)False

Question 19

The state boards of accountancy work under direct control of the AICPA.

Accepted Answer

A) True 
 B)False

Question 20

A CPA performing audits of governmental entities must adhere to standards established by:

Accepted Answer

A)  the AICPA. 
B)  the GAO. 
C)  both the GASB and by the GAO. 
D)  the FASB. 
E)  both the FASB and by the GAO. 
A)  the AICPA. 
B)  the GAO. 
C)  both the GASB and by the GAO. 
D)  the FASB. 
E)  both the FASB and by the GAO.

Monitoring is an ongoing process whereby a firm evaluates the effectiveness of the other six elements of quality control.

For each of the following types of financial statement audits, indicate who the interested users may be. 1. Financial Statement 2. Compliance 3. Audit report on internal control 4. Operational

Of the following entities, which one is not associated with the public accounting profession?

Compilation is an example of which one of the following types of services?

The subject matter of auditing consists of:

Personnel management addresses a variety of procedures within a CPA firm for hiring, promoting, and training accounting professionals.

Assurance services are independent professional services that improve the quality of information, or its context, for decision makers.

Identify and differentiate between the three types of audits.

There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the:

The state board of accountancy regularly asks firms to submit their peer review letters as part of obtaining a license for the firm to perform audit and attest services.

Which one of the following was not listed as an inherent limitation of a financial statement audit?

Which one of the following consists primarily of inquiries of an entity's management and comparative analyses of financial information?

Identify the entities that are associated with the public accounting profession that are (1) private sector organizations and those that are (2) public sector organizations.

Over the years the demand for auditing has been reduced by professional managers who misled investors by materially misstating the financial performance of their company's financial statements.

An auditor would be most likely to issue a "summary of findings" in connection with which one of the following types of services?

An assurance service is one 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 state boards of accountancy work under direct control of the AICPA.

A CPA performing audits of governmental entities must adhere to standards established by:

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

Monitoring is an ongoing process whereby a firm evaluates the effectiveness of the other six elements of quality control.

For each of the following types of financial statement audits, indicate who the interested users may be. 1. Financial Statement 2. Compliance 3. Audit report on internal control 4. Operational

Of the following entities, which one is not associated with the public accounting profession?

Compilation is an example of which one of the following types of services?

The subject matter of auditing consists of:

Personnel management addresses a variety of procedures within a CPA firm for hiring, promoting, and training accounting professionals.

Assurance services are independent professional services that improve the quality of information, or its context, for decision makers.

Identify and differentiate between the three types of audits.

There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the:

The state board of accountancy regularly asks firms to submit their peer review letters as part of obtaining a license for the firm to perform audit and attest services.

Which one of the following was not listed as an inherent limitation of a financial statement audit?

Which one of the following consists primarily of inquiries of an entity's management and comparative analyses of financial information?

Identify the entities that are associated with the public accounting profession that are (1) private sector organizations and those that are (2) public sector organizations.

Over the years the demand for auditing has been reduced by professional managers who misled investors by materially misstating the financial performance of their company's financial statements.

An auditor would be most likely to issue a "summary of findings" in connection with which one of the following types of services?

An assurance service is one 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 state boards of accountancy work under direct control of the AICPA.

A CPA performing audits of governmental entities must adhere to standards established by:

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