Exam 1: Auditing and Assurance Services

The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations.The auditor reviewed all work orders that were capitalized as part of the equipment costs.Which of the following is the ASB transaction assertion most closely related to the auditor's testing?

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(Multiple Choice)

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Question 1

Correct Answer:

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What are the differences between the American Accounting Association and AICPA definitions and objectives of auditing?

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(Essay)

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Question 2

Correct Answer:

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The AAA definition is broad and general enough to encompass independent,internal,and governmental auditing.The AICPA has not defined auditing,but its statement on objectives of financial audits restricts auditing to independent CPA's audit of the traditional financial statements and their footnotes.The AICPA SAS also offers guides to report on internal control,letters to underwriters,and special reports.

What is information risk? What is business risk?

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(Essay)

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Question 3

Correct Answer:

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Information risk is the risk that financial statements will be materially false or misleading.Business risk is the risk an entity will fail to meet its objectives.

Assurance services involve all of the following except

(Multiple Choice)

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Question 4

What are the four basic requirements for becoming a CPA?

(Essay)

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Question 5

For independent auditors of financial statements in the United States,established criteria largely consist of the generally accepted accounting principles (GAAP).

(True/False)

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Question 6

The auditor's judgment concerning the overall fairness of the presentation of financial position,results of operations,and cash flows is applied within the framework of

(Multiple Choice)

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Question 7

In an attestation engagement,a CPA practitioner is engaged to

(Multiple Choice)

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Question 8

It is always a good idea for auditors to begin an audit with the professional skepticism characterized by the assumption that

(Multiple Choice)

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Question 9

Define assurance,attestation,and auditing in the context of "lending credibility."

(Essay)

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Question 10

The objective of the ordinary examination of financial statements by the independent auditor is the expression of a(n)_ on the _ of financial statements.

(Short Answer)

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Question 11

Four conditions that create demand for reliable information are complexity,remoteness,timeliness,and consequences.

(True/False)

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Question 12

The concept "professional skepticism" requires that auditors assume management is dishonest and should not be trusted.

(True/False)

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Question 13

The PCAOB audit objective related to the completeness assertion is to establish evidence that assets,liabilities,and equities actually exist.

(True/False)

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Question 14

Which of the following is not a role of the AICPA?

(Multiple Choice)

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Question 15

Which of the PCAOB assertions (A-E)are best verified by the following audit procedures (1-4)? A. Existence or occurrence. B. Rights and obligations. C. Valuation or allocation. D. Completeness. E. Presentation and disclosure.

(Short Answer)

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Question 16

The risk to investors that a company's financial statements may be materially misleading is called

(Multiple Choice)

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Question 17

The probability that the information circulated by a company will be false or misleading is referred to as

(Multiple Choice)

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Question 18

The audit process involves obtaining and evaluating ____________________________.

(Short Answer)

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Question 19

An attestation engagement is one in which a CPA is engaged to

(Multiple Choice)

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Question 20

Showing 1 - 20 of 115

What are the differences between the American Accounting Association and AICPA definitions and objectives of auditing?

What is information risk? What is business risk?

Assurance services involve all of the following except

What are the four basic requirements for becoming a CPA?

For independent auditors of financial statements in the United States,established criteria largely consist of the generally accepted accounting principles (GAAP).

The auditor's judgment concerning the overall fairness of the presentation of financial position,results of operations,and cash flows is applied within the framework of

In an attestation engagement,a CPA practitioner is engaged to

It is always a good idea for auditors to begin an audit with the professional skepticism characterized by the assumption that

Define assurance,attestation,and auditing in the context of "lending credibility."

The objective of the ordinary examination of financial statements by the independent auditor is the expression of a(n)_ on the _ of financial statements.

Four conditions that create demand for reliable information are complexity,remoteness,timeliness,and consequences.

The concept "professional skepticism" requires that auditors assume management is dishonest and should not be trusted.

The PCAOB audit objective related to the completeness assertion is to establish evidence that assets,liabilities,and equities actually exist.

Which of the following is not a role of the AICPA?

Which of the PCAOB assertions (A-E)are best verified by the following audit procedures (1-4)? A. Existence or occurrence. B. Rights and obligations. C. Valuation or allocation. D. Completeness. E. Presentation and disclosure.

The risk to investors that a company's financial statements may be materially misleading is called

The probability that the information circulated by a company will be false or misleading is referred to as

The audit process involves obtaining and evaluating ____________________________.

An attestation engagement is one in which a CPA is engaged to

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 1: Auditing and Assurance Services

What are the differences between the American Accounting Association and AICPA definitions and objectives of auditing?

What is information risk? What is business risk?

Assurance services involve all of the following except

What are the four basic requirements for becoming a CPA?

For independent auditors of financial statements in the United States,established criteria largely consist of the generally accepted accounting principles (GAAP).

The auditor's judgment concerning the overall fairness of the presentation of financial position,results of operations,and cash flows is applied within the framework of

In an attestation engagement,a CPA practitioner is engaged to

It is always a good idea for auditors to begin an audit with the professional skepticism characterized by the assumption that

Define assurance,attestation,and auditing in the context of "lending credibility."

The objective of the ordinary examination of financial statements by the independent auditor is the expression of a(n)_____________________________ on the _____________________________ of financial statements.

Four conditions that create demand for reliable information are complexity,remoteness,timeliness,and consequences.

The concept "professional skepticism" requires that auditors assume management is dishonest and should not be trusted.

The PCAOB audit objective related to the completeness assertion is to establish evidence that assets,liabilities,and equities actually exist.

Which of the following is not a role of the AICPA?

Which of the PCAOB assertions (A-E)are best verified by the following audit procedures (1-4)? A. Existence or occurrence. B. Rights and obligations. C. Valuation or allocation. D. Completeness. E. Presentation and disclosure.

The risk to investors that a company's financial statements may be materially misleading is called

The probability that the information circulated by a company will be false or misleading is referred to as

The audit process involves obtaining and evaluating ____________________________.

An attestation engagement is one in which a CPA is engaged to

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

The objective of the ordinary examination of financial statements by the independent auditor is the expression of a(n)_ on the _ of financial statements.