Question 1

Which of the following statements is not true with respect to assurance, attest, and audit services?

Accepted Answer

A) These services are applied only to financial statements and financial statement accounts. 
B) These services all involve obtaining and evaluating evidence. 
C) These services all involve determining the correspondence of some information to a set of criteria. 
D) These services all involve issuing a report. 
A) These services are applied only to financial statements and financial statement accounts. 
B) These services all involve obtaining and evaluating evidence. 
C) These services all involve determining the correspondence of some information to a set of criteria. 
D) These services all involve issuing a report.

Question 2

Other than a financial statement audit, what are two other assurance services? How do these assurance services differ from a financial statement audit?

Accepted Answer

Services like Consumer Reports, Carfax,

Question 3

Which of the following is not a concept that is included in the scope paragraph of the auditor's report?

Accepted Answer

A) The conformance of the financial statements with generally accepted accounting principles. 
B) The audit was conducted in accordance with applicable auditing standards. 
C) The audit was planned and performed to obtain reasonable, rather than absolute, assurance. 
D) An audit involves examining items on a test (i.e., sampling)basis. 
A) The conformance of the financial statements with generally accepted accounting principles. 
B) The audit was conducted in accordance with applicable auditing standards. 
C) The audit was planned and performed to obtain reasonable, rather than absolute, assurance. 
D) An audit involves examining items on a test (i.e., sampling)basis.

Question 4

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

Accepted Answer

A) All audits involve obtaining the same evidence. 
B) All audits involve evaluating evidence in the same manner. 
C) There should be a well-planned approach for obtaining and evaluating evidence. 
D) All assertions are equally important for all audits. 
A) All audits involve obtaining the same evidence. 
B) All audits involve evaluating evidence in the same manner. 
C) There should be a well-planned approach for obtaining and evaluating evidence. 
D) All assertions are equally important for all audits.

Question 5

In the context of agency theory, information asymmetry refers to the idea that:

Accepted Answer

A) information can vary in its reliability. 
B) information can vary in its relevance. 
C) management has more information about the entity's true financial position than do the absentee owners (i.e., stockholders). 
D) management likely will not act in the best interests of the absentee owners. 
A) information can vary in its reliability. 
B) information can vary in its relevance. 
C) management has more information about the entity's true financial position than do the absentee owners (i.e., stockholders). 
D) management likely will not act in the best interests of the absentee owners.

Question 6

Name and discuss the seven phases of the audit process.

Accepted Answer

1. Client acceptance/continuance: To min

Question 7

Which of the following is not a benefit of emerging audit technologies?

Accepted Answer

A) Automate much of the more tedious work that auditors perform. 
B) The potential to dramatically enhance the effectiveness and the value of the external audit. 
C) Leave more time for auditors to better understand the businesses they are auditing the underlying risks related to financial reporting. 
D) Remove the challenge of junior auditor work and make that work less interesting. 
A) Automate much of the more tedious work that auditors perform. 
B) The potential to dramatically enhance the effectiveness and the value of the external audit. 
C) Leave more time for auditors to better understand the businesses they are auditing the underlying risks related to financial reporting. 
D) Remove the challenge of junior auditor work and make that work less interesting.

Question 8

Before accepting an engagement to audit a new entity, an auditor is required to:

Accepted Answer

A) make inquiries of the predecessor auditor. 
B) tell the company whether or not the auditor is willing to issue a "clean" opinion. 
C) prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. 
D) become a member of the entity's board of directors. 
A) make inquiries of the predecessor auditor. 
B) tell the company whether or not the auditor is willing to issue a "clean" opinion. 
C) prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. 
D) become a member of the entity's board of directors.

Question 9

Decision makers demand reliable information that is provided by accountants.

Accepted Answer

A) True 
 B)False

Question 10

Define "information asymmetry" and discuss it in the context of the financial markets. Include in your discussion how information asymmetry is reduced.

Accepted Answer

In the context of financial markets, inf

Which of the following statements is not true with respect to assurance, attest, and audit services?

Other than a financial statement audit, what are two other assurance services? How do these assurance services differ from a financial statement audit?

Which of the following is not a concept that is included in the scope paragraph of the auditor's report?

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

In the context of agency theory, information asymmetry refers to the idea that:

Name and discuss the seven phases of the audit process.

Which of the following is not a benefit of emerging audit technologies?

Before accepting an engagement to audit a new entity, an auditor is required to:

Decision makers demand reliable information that is provided by accountants.

Define "information asymmetry" and discuss it in the context of the financial markets. Include in your discussion how information asymmetry is reduced.

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters

Exam 1: An Introduction to Assurance and Financial Statement Auditing

Which of the following statements is not true with respect to assurance, attest, and audit services?

Other than a financial statement audit, what are two other assurance services? How do these assurance services differ from a financial statement audit?

Which of the following is not a concept that is included in the scope paragraph of the auditor's report?

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

In the context of agency theory, information asymmetry refers to the idea that:

Name and discuss the seven phases of the audit process.

Which of the following is not a benefit of emerging audit technologies?

Before accepting an engagement to audit a new entity, an auditor is required to:

Decision makers demand reliable information that is provided by accountants.

Define "information asymmetry" and discuss it in the context of the financial markets. Include in your discussion how information asymmetry is reduced.

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters