Question 1

Whenever there is a scope restriction, the appropriate response is to issue a(n):

Accepted Answer

A)  qualified opinion. 
B)  adverse opinion. 
C)  unmodified report, a qualification of scope and opinion, or a disclaimer, depending on materiality. 
D)  disclaimer of opinion. 
A)  qualified opinion. 
B)  adverse opinion. 
C)  unmodified report, a qualification of scope and opinion, or a disclaimer, depending on materiality. 
D)  disclaimer of opinion.

Question 2

Which one of these following is not covered in the audit evidence section of the International Standards on Auditing?

Accepted Answer

A)  Communication with those charged with governance. 
B)  Going concern. 
C)  Analytical procedures. 
D)  External confirmations. 
A)  Communication with those charged with governance. 
B)  Going concern. 
C)  Analytical procedures. 
D)  External confirmations.

Question 3

Discuss the four primary requirements for becoming a licensed accountant in Kuwait.

Accepted Answer

The four primary requirements for becomi

Question 4

International Standards on Review Engagements are issued by the:

Accepted Answer

A)  Financial Accounting Standards Board. 
B)  International Auditing and Assurance Standards Board. 
C)  Islamic Financial Services Board. 
D)  Securities and Exchange Commission. 
A)  Financial Accounting Standards Board. 
B)  International Auditing and Assurance Standards Board. 
C)  Islamic Financial Services Board. 
D)  Securities and Exchange Commission.

Question 5

Statements on Auditing Standards (SASs) are considered to be interpretations of the ten generally accepted auditing standards.

Accepted Answer

A) True 
 B)False

Question 6

The reasons for expressing a qualified opinion due to a departure from IFRS are expressed in a paragraph:

Accepted Answer

A)  either preceding or following the opinion paragraph, depending on materiality. 
B)  following the opinion paragraph. 
C)  preceding the management responsibility paragraph. 
D)  following the auditor's responsibility paragraph. 
A)  either preceding or following the opinion paragraph, depending on materiality. 
B)  following the opinion paragraph. 
C)  preceding the management responsibility paragraph. 
D)  following the auditor's responsibility paragraph.

Question 7

Which of these statements about quality reviews undertaken by international CPA networks in the Arab world is not True?

Accepted Answer

A)  The review includes an evaluation of the internal system of the member, including the firm's working papers and audit manual. 
B)  The member being reviewed selects partners and managers of other member firms within the network to conduct the review. 
C)  Each CPA network carries out an interim review of its members' quality of services using standard practices applied within the network. 
D)  Those carrying out reviews of other firms must be located in the same geographical area where there are common features relating to the accounting and auditing profession. 
A)  The review includes an evaluation of the internal system of the member, including the firm's working papers and audit manual. 
B)  The member being reviewed selects partners and managers of other member firms within the network to conduct the review. 
C)  Each CPA network carries out an interim review of its members' quality of services using standard practices applied within the network. 
D)  Those carrying out reviews of other firms must be located in the same geographical area where there are common features relating to the accounting and auditing profession.

Question 8

To emphasize the fact that the auditor is independent, a typical addressee of the audit report could be:

Accepted Answer

The answer of To emphasize the fact that the auditor...

Question 9

Whenever an auditor issues a qualified opinion, the implication is that the auditor:

Accepted Answer

A)  believes the financial statements are presented fairly 'except for' a specific aspect of them. 
B)  does not know if the financial statements are presented fairly. 
C)  does not believe the financial statements are presented fairly. 
D)  believes the financial statements are presented fairly. 
A)  believes the financial statements are presented fairly 'except for' a specific aspect of them. 
B)  does not know if the financial statements are presented fairly. 
C)  does not believe the financial statements are presented fairly. 
D)  believes the financial statements are presented fairly.

Question 10

The use of assurance and attestation services for online information and other IT services is widespread in the Arab world.

Accepted Answer

A) True 
 B)False

Question 11

When an auditor encounters a situation involving more than one of the conditions requiring a departure from a standard unmodified report, the auditor should modify his or her opinion for each condition unless one has the effect of neutralizing the others. In which of the following situations would the auditor not include more than one modification in the report?

Accepted Answer

A)  There is a material scope limitation, and the auditor is not independent. 
B)  There is a substantial doubt about the company's ability to continue as a going concern, and information about the causes of the uncertainties is not adequately disclosed in a footnote. 
C)  There is a material IFRS violation, and the auditor is not independent. 
D)  There is a material scope limitation, and there is substantial doubt about the company's ability to continue as a going concern. 
A)  There is a material scope limitation, and the auditor is not independent. 
B)  There is a substantial doubt about the company's ability to continue as a going concern, and information about the causes of the uncertainties is not adequately disclosed in a footnote. 
C)  There is a material IFRS violation, and the auditor is not independent. 
D)  There is a material scope limitation, and there is substantial doubt about the company's ability to continue as a going concern.

Question 12

Which of the following is the least likely form of business structure for a CPA firm?

Accepted Answer

A)  General corporation. 
B)  Proprietorship. 
C)  General partnership. 
D)  Limited liability partnership. 
A)  General corporation. 
B)  Proprietorship. 
C)  General partnership. 
D)  Limited liability partnership.

Question 13

The generally accepted auditing standard that requires 'adequate technical training and proficiency' is normally interpreted as requiring the auditor to have:

Accepted Answer

A)  a graduate degree in a business field. 
B)  worked for an entity similar to the entity being audited. 
C)  independence in mental attitude. 
D)  formal education in auditing and accounting. 
A)  a graduate degree in a business field. 
B)  worked for an entity similar to the entity being audited. 
C)  independence in mental attitude. 
D)  formal education in auditing and accounting.

Question 14

In the context of auditing, explain what is meant by an independent mental attitude. Discuss how internal auditors can have an independent mental attitude when they are employed by the company they audit.

Accepted Answer

Independent mental attitude refers to a

Question 15

When a company's financial statements contain a departure from IFRS with which the auditor concurs, the departure should be explained in:

Accepted Answer

A)  the opinion paragraph. 
B)  the management's responsibility paragraph. 
C)  an emphasis of a matter paragraph that appears before the opinion paragraph. 
D)  an emphasis of a matter paragraph after the opinion paragraph. 
A)  the opinion paragraph. 
B)  the management's responsibility paragraph. 
C)  an emphasis of a matter paragraph that appears before the opinion paragraph. 
D)  an emphasis of a matter paragraph after the opinion paragraph.

Question 16

Describe the standard unmodified audit report. Specify the ten parts of the report, and then discuss the contents of each part.

Accepted Answer

The parts of the standard unmodified aud

Question 17

Discuss the quality control measures introduced for audit firms in Saudi Arabia by the Saudi Organization for Certified Public Accountants (SOCPA)?

Accepted Answer

The quality standards issued by SOCPA in

Question 18

Williams & Co., a U.S. audit firm, is to have a 'peer review.' The peer review can be performed by:

Accepted Answer

A)  another audit firm selected by Williams & Co. 
B)  a review team selected by the state society. 
C)  internal auditors. 
D)  either A or B. 
A)  another audit firm selected by Williams & Co. 
B)  a review team selected by the state society. 
C)  internal auditors. 
D)  either A or B.

Question 19

If an audit client has not consistently applied accounting principles, and the auditor does not concur with the appropriateness of the change, either an unmodified, a qualified, or an adverse opinion should be issued, depending on the materiality level involved.

Accepted Answer

A) True 
 B)False

Question 20

Working as a GAO auditor or as an internal auditor fulfils the experience requirement for becoming a licensed accountant in many Arab countries.

Accepted Answer

A) True 
 B)False

Whenever there is a scope restriction, the appropriate response is to issue a(n):

Which one of these following is not covered in the audit evidence section of the International Standards on Auditing?

Discuss the four primary requirements for becoming a licensed accountant in Kuwait.

International Standards on Review Engagements are issued by the:

Statements on Auditing Standards (SASs) are considered to be interpretations of the ten generally accepted auditing standards.

The reasons for expressing a qualified opinion due to a departure from IFRS are expressed in a paragraph:

Which of these statements about quality reviews undertaken by international CPA networks in the Arab world is not True?

To emphasize the fact that the auditor is independent, a typical addressee of the audit report could be:

Whenever an auditor issues a qualified opinion, the implication is that the auditor:

The use of assurance and attestation services for online information and other IT services is widespread in the Arab world.

Which of the following is the least likely form of business structure for a CPA firm?

The generally accepted auditing standard that requires 'adequate technical training and proficiency' is normally interpreted as requiring the auditor to have:

In the context of auditing, explain what is meant by an independent mental attitude. Discuss how internal auditors can have an independent mental attitude when they are employed by the company they audit.

When a company's financial statements contain a departure from IFRS with which the auditor concurs, the departure should be explained in:

Describe the standard unmodified audit report. Specify the ten parts of the report, and then discuss the contents of each part.

Discuss the quality control measures introduced for audit firms in Saudi Arabia by the Saudi Organization for Certified Public Accountants (SOCPA)?

Williams & Co., a U.S. audit firm, is to have a 'peer review.' The peer review can be performed by:

If an audit client has not consistently applied accounting principles, and the auditor does not concur with the appropriateness of the change, either an unmodified, a qualified, or an adverse opinion should be issued, depending on the materiality level involved.

Working as a GAO auditor or as an internal auditor fulfils the experience requirement for becoming a licensed accountant in many Arab countries.

Professional Ethics, Legal Liability, Audit Responsibilities and Objectives

Audit Evidence, Audit Planning, Analytical Procedures, Materiality and Risk

Internal Control, Control Risk, Section 404 Audits, Fraud Auditing, and the Impact of Information Technology on the Audit Process

Overall Audit Strategy, Audit Program, Audit of the Sales and Collection Cycle, Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable, Audit Sampling for Tests of Details of Balances, and Audit of the Acquisition and Payment Cycle

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition, Repayment, Audit of Cash and Financial Instruments, and Completing the Audit

Other Assurance Services, Internal and Governmental Financial Auditing and Operations Auditing

Filters

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

Whenever there is a scope restriction, the appropriate response is to issue a(n):

Which one of these following is not covered in the audit evidence section of the International Standards on Auditing?

Discuss the four primary requirements for becoming a licensed accountant in Kuwait.

International Standards on Review Engagements are issued by the:

Statements on Auditing Standards (SASs) are considered to be interpretations of the ten generally accepted auditing standards.

The reasons for expressing a qualified opinion due to a departure from IFRS are expressed in a paragraph:

Which of these statements about quality reviews undertaken by international CPA networks in the Arab world is not True?

To emphasize the fact that the auditor is independent, a typical addressee of the audit report could be:

Whenever an auditor issues a qualified opinion, the implication is that the auditor:

The use of assurance and attestation services for online information and other IT services is widespread in the Arab world.

Which of the following is the least likely form of business structure for a CPA firm?

The generally accepted auditing standard that requires 'adequate technical training and proficiency' is normally interpreted as requiring the auditor to have:

In the context of auditing, explain what is meant by an independent mental attitude. Discuss how internal auditors can have an independent mental attitude when they are employed by the company they audit.

When a company's financial statements contain a departure from IFRS with which the auditor concurs, the departure should be explained in:

Describe the standard unmodified audit report. Specify the ten parts of the report, and then discuss the contents of each part.

Discuss the quality control measures introduced for audit firms in Saudi Arabia by the Saudi Organization for Certified Public Accountants (SOCPA)?

Williams & Co., a U.S. audit firm, is to have a 'peer review.' The peer review can be performed by:

If an audit client has not consistently applied accounting principles, and the auditor does not concur with the appropriateness of the change, either an unmodified, a qualified, or an adverse opinion should be issued, depending on the materiality level involved.

Working as a GAO auditor or as an internal auditor fulfils the experience requirement for becoming a licensed accountant in many Arab countries.

Professional Ethics, Legal Liability, Audit Responsibilities and Objectives

Audit Evidence, Audit Planning, Analytical Procedures, Materiality and Risk

Internal Control, Control Risk, Section 404 Audits, Fraud Auditing, and the Impact of Information Technology on the Audit Process

Overall Audit Strategy, Audit Program, Audit of the Sales and Collection Cycle, Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable, Audit Sampling for Tests of Details of Balances, and Audit of the Acquisition and Payment Cycle

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition, Repayment, Audit of Cash and Financial Instruments, and Completing the Audit

Other Assurance Services, Internal and Governmental Financial Auditing and Operations Auditing

Filters