Question 1

In the audit of historical financial statements by PA firms, the criteria used are

Accepted Answer

A)  generally accepted auditing standards. 
B)  generally accepted accounting principles. 
C)  regulations of the Canada Revenue Agency. 
D)  regulations of the provincial securities commissions. 
A)  generally accepted auditing standards. 
B)  generally accepted accounting principles. 
C)  regulations of the Canada Revenue Agency. 
D)  regulations of the provincial securities commissions.

Question 2

Which of the following services results in assurance that the company's e-commerce activities on its website comply with Trust Services principles?

Accepted Answer

A)  review engagement 
B)  internal controls assessment 
C)  SysTrust 
D)  WebTrust 
A)  review engagement 
B)  internal controls assessment 
C)  SysTrust 
D)  WebTrust

Question 3

When readers are cautioned that the financial statements may not be appropriate for their purposes, the non-assurance service is called a(n)

Accepted Answer

A)  SysTrust. 
B)  compilation. 
C)  review. 
D)  audit. 
A)  SysTrust. 
B)  compilation. 
C)  review. 
D)  audit.

Question 4

The reasoning behind the requirements of the Sarbanes Oxley Act's section 404 (attestation on internal control over financial reporting) is that

Accepted Answer

A)  effective controls result in greater profits to organizations, reducing business failures. 
B)  effective controls reduce the likelihood of future misstatements in the financial statements. 
C)  better internal controls can be implemented at lower cost, improving product quality. 
D)  automated controls improve customer service, resulting in higher product sales. 
A)  effective controls result in greater profits to organizations, reducing business failures. 
B)  effective controls reduce the likelihood of future misstatements in the financial statements. 
C)  better internal controls can be implemented at lower cost, improving product quality. 
D)  automated controls improve customer service, resulting in higher product sales.

Question 5

To do an audit, it is necessary to have information in a verifiable form and some criteria by which the auditor can evaluate the information.
Required:
A) What information and criteria would a public accounting firm use when auditing a company's financial statements?
B) What information and criteria would a Canada Revenue Agency auditor use when auditing that same company's tax return?
C) What information and criteria would an internal auditor use when performing an operational audit to evaluate whether the company's computerized payroll processing system is operating efficiently and effectively?

Accepted Answer

A)The information used by a public accou

Question 6

In the audit of a corporate tax return, the report provided by the Canada Revenue Agency auditor would describe

Accepted Answer

A)  an opinion on the likelihood of tax return error. 
B)  the likely accounting errors that could contribute to tax errors. 
C)  management issues with respect to accurately reporting taxes. 
D)  corporate income tax overages or income tax underpayments. 
A)  an opinion on the likelihood of tax return error. 
B)  the likely accounting errors that could contribute to tax errors. 
C)  management issues with respect to accurately reporting taxes. 
D)  corporate income tax overages or income tax underpayments.

Question 7

An accountant records information. When conducting an audit, the auditor must possess

Accepted Answer

A)  an ability to interpret generally accepted accounting frameworks. 
B)  an education beyond the bachelor's degree. 
C)  an ability to classify transactions by type. 
D)  an ability to organize and summarize economic events. 
A)  an ability to interpret generally accepted accounting frameworks. 
B)  an education beyond the bachelor's degree. 
C)  an ability to classify transactions by type. 
D)  an ability to organize and summarize economic events.

Question 8

A reason for a nonprofit organization to be audited is to

Accepted Answer

A)  comply with the laws requiring them to be audited. 
B)  meet requirements of lenders or funding sources. 
C)  have a professional accountant perform their bookkeeping. 
D)  ensure that their financial statements do not contain errors. 
A)  comply with the laws requiring them to be audited. 
B)  meet requirements of lenders or funding sources. 
C)  have a professional accountant perform their bookkeeping. 
D)  ensure that their financial statements do not contain errors.

Question 9

In Canada, publicly traded companies are

Accepted Answer

A)  required to have audits. 
B)  strongly encouraged to have audits. 
C)  not required to have an audit if they have a review. 
D)  not required to have an audit. 
A)  required to have audits. 
B)  strongly encouraged to have audits. 
C)  not required to have an audit if they have a review. 
D)  not required to have an audit.

In the audit of historical financial statements by PA firms, the criteria used are

Which of the following services results in assurance that the company's e-commerce activities on its website comply with Trust Services principles?

When readers are cautioned that the financial statements may not be appropriate for their purposes, the non-assurance service is called a(n)

The reasoning behind the requirements of the Sarbanes Oxley Act's section 404 (attestation on internal control over financial reporting) is that

In the audit of a corporate tax return, the report provided by the Canada Revenue Agency auditor would describe

An accountant records information. When conducting an audit, the auditor must possess

A reason for a nonprofit organization to be audited is to

In Canada, publicly traded companies are

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters

Exam 1: The Demand for Audit and Other Assurance Services

In the audit of historical financial statements by PA firms, the criteria used are

Which of the following services results in assurance that the company's e-commerce activities on its website comply with Trust Services principles?

When readers are cautioned that the financial statements may not be appropriate for their purposes, the non-assurance service is called a(n)

The reasoning behind the requirements of the Sarbanes Oxley Act's section 404 (attestation on internal control over financial reporting) is that

In the audit of a corporate tax return, the report provided by the Canada Revenue Agency auditor would describe

An accountant records information. When conducting an audit, the auditor must possess

A reason for a nonprofit organization to be audited is to

In Canada, publicly traded companies are

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters