Question 1

Audit Quality.
What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

Accepted Answer

There are five primary drivers of audit

Question 2

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

Accepted Answer

A)  The financial markets. 
B)  Management. 
C)  Auditors. 
D)  Both B and C. 
E)  All of the above. 
A)  The financial markets. 
B)  Management. 
C)  Auditors. 
D)  Both B and C. 
E)  All of the above.

Question 3

The PCAOB is a public board, appointed by Congress, to provide oversight of the firms that audit public companies registered with the SEC.

Accepted Answer

A) True 
 B)False

Question 4

Audit Quality.
What is audit quality?

Accepted Answer

a definition published by the GAO (2003)

Question 5

Who is responsible for internal controls within an organization?

Accepted Answer

A)  The internal auditor. 
B)  The external auditor. 
C)  Management. 
D)  The PCAOB. 
A)  The internal auditor. 
B)  The external auditor. 
C)  Management. 
D)  The PCAOB.

Question 6

The SEC is the governmental body with the oversight responsibility for the efficient operation of capital markets in the United States.

Accepted Answer

A) True 
 B)False

Question 7

Management may have incentive to bias financial information, but the various users of the statements are not likely to have conflicting interests in the financial information.

Accepted Answer

A) True 
 B)False

Question 8

The overall objective of an audit is to obtain assurance whether the financial statements are free of misstatement.

Accepted Answer

A) True 
 B)False

Question 9

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

Accepted Answer

A) True 
 B)False

Question 10

In an audit, management is considered the "client".

Accepted Answer

A) True 
 B)False

Question 11

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

Accepted Answer

A) True 
 B)False

Question 12

According to the FRC which of the following attributes contributes to the reliability and usefulness of audit reporting?

Accepted Answer

A)  The audit methodology is well structured. 
B)  Quality technical support is available when auditors require guidance. 
C)  Auditors appropriately conclude as to the truth and fairness of the financial statements. 
D)  The audit work is effectively reviewed. 
A)  The audit methodology is well structured. 
B)  Quality technical support is available when auditors require guidance. 
C)  Auditors appropriately conclude as to the truth and fairness of the financial statements. 
D)  The audit work is effectively reviewed.

Question 13

Though often relying on the FASB, the SEC has authority to establish GAAP for publicly traded companies.

Accepted Answer

A) True 
 B)False

Question 14

What is the term used to describe a systematic process of objectively obtaining evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users?

Accepted Answer

A)  Internal audit. 
B)  Financial statement audit. 
C)  External audit. 
D)  Program audit 
A)  Internal audit. 
B)  Financial statement audit. 
C)  External audit. 
D)  Program audit

Question 15

Which governing board performs quality reviews on registered audit firms that audit public companies?

Accepted Answer

A)  PCAOB. 
B)  GAO. 
C)  AICPA. 
D)  FASB. 
A)  PCAOB. 
B)  GAO. 
C)  AICPA. 
D)  FASB.

Question 16

The SEC has authority to establish GAAP for all business enterprises.

Accepted Answer

A) True 
 B)False

Question 17

Which organization issued the Internal Control, Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

Accepted Answer

A)  PCAOB. 
B)  COSO. 
C)  AICPA. 
D)  GAO. 
A)  PCAOB. 
B)  COSO. 
C)  AICPA. 
D)  GAO.

Question 18

Who licenses CPAs?

Accepted Answer

A)  The PCAOB. 
B)  The AICPA. 
C)  The State Boards of Accountancy. 
D)  The SEC. 
A)  The PCAOB. 
B)  The AICPA. 
C)  The State Boards of Accountancy. 
D)  The SEC.

Question 19

Which one of the following is not a primary driver of audit quality?

Accepted Answer

A)  Skills and personal qualities of audit staff. 
B)  Reasonable audit fees. 
C)  Effective audit processes. 
D)  Audit firm culture. 
A)  Skills and personal qualities of audit staff. 
B)  Reasonable audit fees. 
C)  Effective audit processes. 
D)  Audit firm culture.

Question 20

Who are the users of the financial statements?

Accepted Answer

A)  Management. 
B)  Auditors. 
C)  Taxing Authorities. 
D)  Both A and C. 
A)  Management. 
B)  Auditors. 
C)  Taxing Authorities. 
D)  Both A and C.

Audit Quality. What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

The PCAOB is a public board, appointed by Congress, to provide oversight of the firms that audit public companies registered with the SEC.

Audit Quality. What is audit quality?

Who is responsible for internal controls within an organization?

The SEC is the governmental body with the oversight responsibility for the efficient operation of capital markets in the United States.

Management may have incentive to bias financial information, but the various users of the statements are not likely to have conflicting interests in the financial information.

The overall objective of an audit is to obtain assurance whether the financial statements are free of misstatement.

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

In an audit, management is considered the "client".

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

According to the FRC which of the following attributes contributes to the reliability and usefulness of audit reporting?

Though often relying on the FASB, the SEC has authority to establish GAAP for publicly traded companies.

What is the term used to describe a systematic process of objectively obtaining evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users?

Which governing board performs quality reviews on registered audit firms that audit public companies?

The SEC has authority to establish GAAP for all business enterprises.

Which organization issued the Internal Control, Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

Who licenses CPAs?

Which one of the following is not a primary driver of audit quality?

Who are the users of the financial statements?

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters

Exam 1: Auditing: Integral to the Economy

Audit Quality. What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

The Center for Audit Quality is dedicated to enhancing investor confidence in what?

The PCAOB is a public board, appointed by Congress, to provide oversight of the firms that audit public companies registered with the SEC.

Audit Quality. What is audit quality?

Who is responsible for internal controls within an organization?

The SEC is the governmental body with the oversight responsibility for the efficient operation of capital markets in the United States.

Management may have incentive to bias financial information, but the various users of the statements are not likely to have conflicting interests in the financial information.

The overall objective of an audit is to obtain assurance whether the financial statements are free of misstatement.

A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.

In an audit, management is considered the "client".

The Public Company Accounting Oversight Board was established by the AICPA in response to Securities laws.

According to the FRC which of the following attributes contributes to the reliability and usefulness of audit reporting?

Though often relying on the FASB, the SEC has authority to establish GAAP for publicly traded companies.

What is the term used to describe a systematic process of objectively obtaining evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users?

Which governing board performs quality reviews on registered audit firms that audit public companies?

The SEC has authority to establish GAAP for all business enterprises.

Which organization issued the Internal Control, Integrated Framework which serves as the primary criterion for evaluating the quality of a company's internal control system?

Who licenses CPAs?

Which one of the following is not a primary driver of audit quality?

Who are the users of the financial statements?

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters