Question 1

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following factors affect the substantive procedures performed in an audit?

Accepted Answer

A)  The subjectivity of accounting process. 
B)  Size of the account. 
C)  Effectiveness of the relevant controls. 
D)  All of the above affect the substantive procedure that are performed. 
A)  The subjectivity of accounting process. 
B)  Size of the account. 
C)  Effectiveness of the relevant controls. 
D)  All of the above affect the substantive procedure that are performed.

Question 3

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Accepted Answer

A)  Understanding the entity's internal control is a requirement of GAAS. 
B)  The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control. 
C)  It is the primary basis for the audit report. 
D)  It assists the auditor in designing the nature, timing and extent of further audit procedures. 
A)  Understanding the entity's internal control is a requirement of GAAS. 
B)  The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control. 
C)  It is the primary basis for the audit report. 
D)  It assists the auditor in designing the nature, timing and extent of further audit procedures.

Question 4

Developing an understanding of the client's business and industry is essential to proficiency as discussed in the PCAOB's general standards.

Accepted Answer

A) True 
 B)False

Question 5

The Public Company Accounting Oversight Board (PCAOB) does not set specific standards for audits of public companies.

Accepted Answer

A) True 
 B)False

Question 6

The AICPA Principles Governing an Audit include which of the following categories that guide the conduct of an audit?

Accepted Answer

A)  Purpose of an audit and premise upon which an audit is conducted. 
B)  Responsibilities. 
C)  Performance. 
D)  All of the above. 
A)  Purpose of an audit and premise upon which an audit is conducted. 
B)  Responsibilities. 
C)  Performance. 
D)  All of the above.

Question 7

Physically examining a client's assets is an audit procedure.

Accepted Answer

A) True 
 B)False

Question 8

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items, such as examining a credit balance in an account that typically has a debit balance.

Accepted Answer

A) True 
 B)False

Question 9

An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on control effectiveness and for testing controls in the financial statement period. Control Effectiveness Financial Statement

Accepted Answer

A)  As of year end As of year end 
B)  As of year end Throughout the year 
C)  Throughout the year As of year end 
D)  Throughout the year Throughout the year 
A)  As of year end As of year end 
B)  As of year end Throughout the year 
C)  Throughout the year As of year end 
D)  Throughout the year Throughout the year

Question 10

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

Accepted Answer

A)  Existence. 
B)  Valuation. 
C)  Disclosure. 
D)  Completeness. 
A)  Existence. 
B)  Valuation. 
C)  Disclosure. 
D)  Completeness.

Question 11

Which auditing standards apply to private companies?

Accepted Answer

A)  The AICPA Standards. 
B)  The IASSB Standards. 
C)  The Standards of the PCAOB. 
D)  All of the above. 
A)  The AICPA Standards. 
B)  The IASSB Standards. 
C)  The Standards of the PCAOB. 
D)  All of the above.

Question 12

What are the AICPA's fundamental principles?

Accepted Answer

In place of the ten historical standards

Question 13

Comparability is one of the five management assertions.

Accepted Answer

A) True 
 B)False

Question 14

Research indicates that weaknesses in control components other than control activities do not cause fraud and other misstatements in financial statements.

Accepted Answer

A) True 
 B)False

Question 15

Audit documentation is frequently called working papers.

Accepted Answer

A) True 
 B)False

Question 16

The proper supervision of audit assistants is a requirement found in which section of the Generally Accepted Auditing Standards?

Accepted Answer

A)  General Standards. 
B)  Standards of Fieldwork. 
C)  Standards of Reporting. 
D)  Standards of Quality Control. 
A)  General Standards. 
B)  Standards of Fieldwork. 
C)  Standards of Reporting. 
D)  Standards of Quality Control.

Question 17

PCAOB Assertions.
Discuss the five management financial statement assertions identified in the PCAOB Standards. Provide examples.

Accepted Answer

existence or Occurrence: Assertions abou

Question 18

What is the scope of applicability of the auditing standards of the AICPA?

Accepted Answer

A)  Nonpublic companies traded in non-U.S. markets. 
B)  Nonpublic companies in the U.S. 
C)  Public companies traded in non-U.S. markets. 
D)  Public companies traded in the U.S. 
A)  Nonpublic companies traded in non-U.S. markets. 
B)  Nonpublic companies in the U.S. 
C)  Public companies traded in non-U.S. markets. 
D)  Public companies traded in the U.S.

Question 19

The PCAOB does not currently have a mandate for convergence with other auditing standards.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is correct?

Accepted Answer

A)  Assertions affected by highly objective estimates usually require direct tests of balances. 
B)  The materiality of the account totally dictates the substantive procedures to be performed. 
C)  The evidence the auditor obtains from risk assessment procedures does not influence the substantive procedures to be performed. 
D)  The extent and results of control tests performed by the auditor will influence the substantive procedures to be performed. 
A)  Assertions affected by highly objective estimates usually require direct tests of balances. 
B)  The materiality of the account totally dictates the substantive procedures to be performed. 
C)  The evidence the auditor obtains from risk assessment procedures does not influence the substantive procedures to be performed. 
D)  The extent and results of control tests performed by the auditor will influence the substantive procedures to be performed.

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

Which of the following factors affect the substantive procedures performed in an audit?

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Developing an understanding of the client's business and industry is essential to proficiency as discussed in the PCAOB's general standards.

The Public Company Accounting Oversight Board (PCAOB) does not set specific standards for audits of public companies.

The AICPA Principles Governing an Audit include which of the following categories that guide the conduct of an audit?

Physically examining a client's assets is an audit procedure.

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items, such as examining a credit balance in an account that typically has a debit balance.

An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on control effectiveness and for testing controls in the financial statement period. Control Effectiveness Financial Statement

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

Which auditing standards apply to private companies?

What are the AICPA's fundamental principles?

Comparability is one of the five management assertions.

Research indicates that weaknesses in control components other than control activities do not cause fraud and other misstatements in financial statements.

Audit documentation is frequently called working papers.

The proper supervision of audit assistants is a requirement found in which section of the Generally Accepted Auditing Standards?

PCAOB Assertions. Discuss the five management financial statement assertions identified in the PCAOB Standards. Provide examples.

What is the scope of applicability of the auditing standards of the AICPA?

The PCAOB does not currently have a mandate for convergence with other auditing standards.

Which statement is correct?

Auditing: Integral to the Economy

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

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 5: Professional Auditing Standards and the Audit Opinion Formulation Process

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

Which of the following factors affect the substantive procedures performed in an audit?

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

Developing an understanding of the client's business and industry is essential to proficiency as discussed in the PCAOB's general standards.

The Public Company Accounting Oversight Board (PCAOB) does not set specific standards for audits of public companies.

The AICPA Principles Governing an Audit include which of the following categories that guide the conduct of an audit?

Physically examining a client's assets is an audit procedure.

Scanning is a type of analytical procedure which involves reviewing accounting data to identify significant or unusual items, such as examining a credit balance in an account that typically has a debit balance.

An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on control effectiveness and for testing controls in the financial statement period. Control Effectiveness Financial Statement

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

Which auditing standards apply to private companies?

What are the AICPA's fundamental principles?

Comparability is one of the five management assertions.

Research indicates that weaknesses in control components other than control activities do not cause fraud and other misstatements in financial statements.

Audit documentation is frequently called working papers.

The proper supervision of audit assistants is a requirement found in which section of the Generally Accepted Auditing Standards?

PCAOB Assertions. Discuss the five management financial statement assertions identified in the PCAOB Standards. Provide examples.

What is the scope of applicability of the auditing standards of the AICPA?

The PCAOB does not currently have a mandate for convergence with other auditing standards.

Which statement is correct?

Auditing: Integral to the Economy

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

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