Exam 1: The Demand for Audit, Cpa Profession, Audit Reports and Other Assurance Services

Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

Which of the following is not a Trust Services principle as defined by the AICPA or CICA?

The Statements on Auditing Standards issued by the Auditing Standards Board:

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) prepares accounting, auditing, governance, ethics and Shari'a standards for Islamic financial institutions. The AAOIFI:

Which of the following statements most accurately captures the intent of the standards of field work?

Which of the following will not cause the auditor to issue a standard unmodified report with an emphasis of matter paragraph or modified wording?

The necessity to issue a disclaimer of opinion may arise because of:

Publicly traded companies in the Arab world:

The _________ interest rate may be defined as approximately the rate a bank could earn by investing in government treasury notes for the same length as the length of a business loan.

Which one of these following is not covered in the general principles and responsibilities section of the International Standards on Auditing?

Which of these international standards are published by the International Auditing and Assurance Standards Board?

CPA firms in most countries in the Arab world are permitted to be general corporations.

Which of the following is a type of audit evidence?

Match each of the definition with the following terms -The risk that information upon which a business decision is made is inaccurate

Any CPA firm in the U.S. that audits more than 100 public companies is required to have an annual inspection by the PCAOB.

Assume you are the partner in charge of the 2012 audit of Bashir Corporation, a private company. The audit report has not yet been prepared. In each independent situation following, indicate the appropriate action to be taken. -Ten days after the balance sheet date, one of Bashir's buildings was destroyed by a fire. Bashir refuses to disclose this information in a footnote to the financial statements, but you believe disclosure is required to conform with IFRS. The amount of the uninsured loss was material, but not highly material.

Which one of the following is more difficult to evaluate objectively?

Distinguish between International Standards on Auditing (ISAs) and International Financial Reporting Standards (IFRS). What organization establishes ISAs? What organization establishes IFRS? What are the equivalent standards called in the U.S.?

If a client's financial statements adequately disclose uncertainties that concern future events, the outcome of which are not reasonably estimable. The auditor's report should include a(n):

Assume you are the partner in charge of the 2012 audit of Bashir Corporation, a private company. The audit report has not yet been prepared. In each independent situation following, indicate the appropriate action to be taken. -Bashir Corporation carries its property, plant, and equipment accounts at current market values. Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughout the financial statements.