Question 1

Although the SEC recognizes pronouncements from the FASB as constituting GAAP, in some instances the SEC's disclosure requirements exceed GAAP.

Accepted Answer

A) True 
 B)False

Question 2

List and explain the four conditions that are attributed to the need for independent audits.

Accepted Answer

1.Conflict of Interest. Many user

Question 3

Which one of the following services is often performed on public companies' interim financial statements and nonpublic companies' annual financial statements?

Accepted Answer

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

Question 4

State accountancy laws are administered by:

Accepted Answer

A)  state boards. 
B)  state societies. 
C)  the AICPA. 
D)  the SEC. 
E)  the GAO. 
A)  state boards. 
B)  state societies. 
C)  the AICPA. 
D)  the SEC. 
E)  the GAO.

Question 5

An audit that involves obtaining and evaluating evidence in order to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations is a(n):

Accepted Answer

A)  internal audit. 
B)  external audit. 
C)  operational audit. 
D)  compliance audit. 
E)  financial statement audit. 
A)  internal audit. 
B)  external audit. 
C)  operational audit. 
D)  compliance audit. 
E)  financial statement audit.

Question 6

An examination consists primarily of inquiries of an entity's management and comparative analyses of financial information.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an economic benefit of a financial statement audit?

Accepted Answer

A)  access to capital markets 
B)  control and operational improvements 
C)  lower cost of capital 
D)  decreased inflation rates 
E)  deterrent to inefficiency and fraud 
A)  access to capital markets 
B)  control and operational improvements 
C)  lower cost of capital 
D)  decreased inflation rates 
E)  deterrent to inefficiency and fraud

Question 8

Compliance audits based on criteria established by management are usually made by:

Accepted Answer

A)  internal auditors. 
B)  external auditors. 
C)  upper management. 
D)  the company employees being evaluated. 
E)  governmental auditors. 
A)  internal auditors. 
B)  external auditors. 
C)  upper management. 
D)  the company employees being evaluated. 
E)  governmental auditors.

Question 9

The SEC plays a major role in linking self-regulation and government regulation.

Accepted Answer

A) True 
 B)False

Although the SEC recognizes pronouncements from the FASB as constituting GAAP, in some instances the SEC's disclosure requirements exceed GAAP.

List and explain the four conditions that are attributed to the need for independent audits.

Which one of the following services is often performed on public companies' interim financial statements and nonpublic companies' annual financial statements?

State accountancy laws are administered by:

An audit that involves obtaining and evaluating evidence in order to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations is a(n):

An examination consists primarily of inquiries of an entity's management and comparative analyses of financial information.

Which of the following is not an economic benefit of a financial statement audit?

Compliance audits based on criteria established by management are usually made by:

The SEC plays a major role in linking self-regulation and government regulation.

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

Although the SEC recognizes pronouncements from the FASB as constituting GAAP, in some instances the SEC's disclosure requirements exceed GAAP.

List and explain the four conditions that are attributed to the need for independent audits.

Which one of the following services is often performed on public companies' interim financial statements and nonpublic companies' annual financial statements?

State accountancy laws are administered by:

An audit that involves obtaining and evaluating evidence in order to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations is a(n):

An examination consists primarily of inquiries of an entity's management and comparative analyses of financial information.

Which of the following is not an economic benefit of a financial statement audit?

Compliance audits based on criteria established by management are usually made by:

The SEC plays a major role in linking self-regulation and government regulation.

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