Question 1

The _____________________________ is the accounting,auditing,and investigating agency of the U.S.Congress.

Accepted Answer

The answer of The _____________________________ is the accounting,auditing,and investigating agency...

Question 2

The audit objective that all the transactions and accounts presented in the financial statements represent real assets,liabilities,revenues,and expenses is related most closely to which of the PCAOB assertions?

Accepted Answer

A)  Existence or occurrence. 
B)  Rights and obligations. 
C)  Completeness. 
D)  Presentation and disclosure. 
A)  Existence or occurrence. 
B)  Rights and obligations. 
C)  Completeness. 
D)  Presentation and disclosure.

Question 3

The Sarbanes-Oxley Act of 2002 prohibits public accounting firms from providing which of the following services to an audit client?

Accepted Answer

A)  Bookkeeping services. 
B)  Internal audit services. 
C)  Valuation services. 
D)  All of the above. 
A)  Bookkeeping services. 
B)  Internal audit services. 
C)  Valuation services. 
D)  All of the above.

Question 4

Expanded scope governmental auditing includes economy and efficiency and program results audits.

Accepted Answer

A) True 
 B)False

Question 5

The ASB transaction objective that requires the auditor to establish evidence that all transactions and accounts that should be presented in the financial statements are included is?

Accepted Answer

A)  Completeness. 
B)  Existence or occurrence. 
C)  Rights and obligations. 
D)  Valuation or allocation. 
A)  Completeness. 
B)  Existence or occurrence. 
C)  Rights and obligations. 
D)  Valuation or allocation.

Question 6

The lending of credibility to financial information is known as certification.

Accepted Answer

A) True 
 B)False

Question 7

Bankers who are processing loan applications from companies seeking large loans will probably ask for financial statements audited by an independent CPA because

Accepted Answer

A)  Financial statements are too complex to analyze themselves. 
B)  They are too far away from company headquarters to perform accounting and auditing themselves. 
C)  The consequences of making a bad loan are very undesirable. 
D)  They generally see a potential conflict of interest between company managers who want to get loans and the bank's needs for reliable financial statements. 
A)  Financial statements are too complex to analyze themselves. 
B)  They are too far away from company headquarters to perform accounting and auditing themselves. 
C)  The consequences of making a bad loan are very undesirable. 
D)  They generally see a potential conflict of interest between company managers who want to get loans and the bank's needs for reliable financial statements.

Question 8

Government auditors perform both financial and performance audits.

Accepted Answer

A) True 
 B)False

Question 9

The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions?

Accepted Answer

A)  Existence. 
B)  Rights and obligations. 
C)  Completeness. 
D)  Valuation. 
A)  Existence. 
B)  Rights and obligations. 
C)  Completeness. 
D)  Valuation.

Question 10

Auditors are auditing the warehouse of Huge Lots Corporation.The auditors performed the audit procedures listed in 1-5.For each audit procedure,select the ASB balance assertion that is most likely being tested.
A. Existence.
B. Rights and obligations.
C. Completeness.
D. Accuracy.
E. Valuation.

Accepted Answer

The answer of Auditors are auditing the warehouse of Huge...

Question 11

The definition of performance audits does not include

Accepted Answer

A)  Economy audits. 
B)  Efficiency audits. 
C)  Financial audits. 
D)  Program audits. 
A)  Economy audits. 
B)  Efficiency audits. 
C)  Financial audits. 
D)  Program audits.

Question 12

What requirements are usually necessary to become licensed as a certified public accountant?

Accepted Answer

A)  Successful completion of the Uniform CPA Examination. 
B)  Experience in the accounting field. 
C)  Education. 
D)  All of the above. 
A)  Successful completion of the Uniform CPA Examination. 
B)  Experience in the accounting field. 
C)  Education. 
D)  All of the above.

Question 13

The objective of internal auditing is to assist members of an organization to effectively perform their obligations.

Accepted Answer

A) True 
 B)False

Question 14

The objective in an auditor's review of credit ratings of a client's customers is to obtain evidence related to management's financial statement assertion about

Accepted Answer

A)  Completeness. 
B)  Existence. 
C)  Valuation and allocation. 
D)  Rights and obligations. 
E)  Occurrence. 
A)  Completeness. 
B)  Existence. 
C)  Valuation and allocation. 
D)  Rights and obligations. 
E)  Occurrence.

Question 15

The ASB transaction objective related to _____________________________ is to determine whether proper values have been assigned to all financial transactions.

Accepted Answer

The answer of The ASB transaction objective related to _____________________________...

Question 16

Audits may be characterized as (a)financial statement audits,(b)compliance audits,or (c)operational audits.The work can be done by (a)independent (external)auditors,(b)internal auditors,or (c)government auditors.Below is a list of several audit engagements.For each engagement indicate (a)the type of audit and (b)who would typically do the audit.
1.Render an opinion on the fairness of the presentation of financial statements of a public corporation.
2.Compare the cost of maintaining a fleet of delivery trucks with the option of using an independent delivery service.
3.Audit reported income on a corporation's tax return.
4.Review contract cost of constructing aircraft engines for the armed services.
5.Report on how the installation of a new computer system would help a client reduce data processing costs and improve financial reporting.

Accepted Answer

The answer of Audits may be characterized as (a)financial statement...

Question 17

Which of the following best describes the main reason that independent auditors report on management's financial statements?

Accepted Answer

A)  Management fraud may exist, and it is likely to be detected by independent auditors. 
B)  The management that prepares the statements and the persons who use the statements may have conflicting interests. 
C)  Misstated account balances may be corrected as the result of the independent audit work. 
D)  The management that prepares the statements may have a poorly designed system of internal control. 
A)  Management fraud may exist, and it is likely to be detected by independent auditors. 
B)  The management that prepares the statements and the persons who use the statements may have conflicting interests. 
C)  Misstated account balances may be corrected as the result of the independent audit work. 
D)  The management that prepares the statements may have a poorly designed system of internal control.

Question 18

The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an ASB assertion about inventory related to presentation and disclosure?

Accepted Answer

A)  Inventory is properly classified as a current asset on the balance sheet. 
B)  Inventory is properly stated at cost on the balance sheet. 
C)  Major inventory categories and their valuation bases are adequately disclosed in notes. 
D)  All of the above are ASB presentation and disclosure assertions about inventory. 
A)  Inventory is properly classified as a current asset on the balance sheet. 
B)  Inventory is properly stated at cost on the balance sheet. 
C)  Major inventory categories and their valuation bases are adequately disclosed in notes. 
D)  All of the above are ASB presentation and disclosure assertions about inventory.

Question 20

Independent auditors of financial statements perform audits that reduce

Accepted Answer

A)  Business risks faced by investors. 
B)  Information risk faced by investors. 
C)  Complexity of financial statements. 
D)  Timeliness of financial statements. 
A)  Business risks faced by investors. 
B)  Information risk faced by investors. 
C)  Complexity of financial statements. 
D)  Timeliness of financial statements.

The _____________________________ is the accounting,auditing,and investigating agency of the U.S.Congress.

The audit objective that all the transactions and accounts presented in the financial statements represent real assets,liabilities,revenues,and expenses is related most closely to which of the PCAOB assertions?

The Sarbanes-Oxley Act of 2002 prohibits public accounting firms from providing which of the following services to an audit client?

Expanded scope governmental auditing includes economy and efficiency and program results audits.

The ASB transaction objective that requires the auditor to establish evidence that all transactions and accounts that should be presented in the financial statements are included is?

The lending of credibility to financial information is known as certification.

Bankers who are processing loan applications from companies seeking large loans will probably ask for financial statements audited by an independent CPA because

Government auditors perform both financial and performance audits.

The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions?

Auditors are auditing the warehouse of Huge Lots Corporation.The auditors performed the audit procedures listed in 1-5.For each audit procedure,select the ASB balance assertion that is most likely being tested. A. Existence. B. Rights and obligations. C. Completeness. D. Accuracy. E. Valuation.

The definition of performance audits does not include

What requirements are usually necessary to become licensed as a certified public accountant?

The objective of internal auditing is to assist members of an organization to effectively perform their obligations.

The objective in an auditor's review of credit ratings of a client's customers is to obtain evidence related to management's financial statement assertion about

The ASB transaction objective related to _____________________________ is to determine whether proper values have been assigned to all financial transactions.

Which of the following best describes the main reason that independent auditors report on management's financial statements?

The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing.

Which of the following is not an ASB assertion about inventory related to presentation and disclosure?

Independent auditors of financial statements perform audits that reduce

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

The _____________________________ is the accounting,auditing,and investigating agency of the U.S.Congress.

The audit objective that all the transactions and accounts presented in the financial statements represent real assets,liabilities,revenues,and expenses is related most closely to which of the PCAOB assertions?

The Sarbanes-Oxley Act of 2002 prohibits public accounting firms from providing which of the following services to an audit client?

Expanded scope governmental auditing includes economy and efficiency and program results audits.

The ASB transaction objective that requires the auditor to establish evidence that all transactions and accounts that should be presented in the financial statements are included is?

The lending of credibility to financial information is known as certification.

Bankers who are processing loan applications from companies seeking large loans will probably ask for financial statements audited by an independent CPA because

Government auditors perform both financial and performance audits.

The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions?

Auditors are auditing the warehouse of Huge Lots Corporation.The auditors performed the audit procedures listed in 1-5.For each audit procedure,select the ASB balance assertion that is most likely being tested. A. Existence. B. Rights and obligations. C. Completeness. D. Accuracy. E. Valuation.

The definition of performance audits does not include

What requirements are usually necessary to become licensed as a certified public accountant?

The objective of internal auditing is to assist members of an organization to effectively perform their obligations.

The objective in an auditor's review of credit ratings of a client's customers is to obtain evidence related to management's financial statement assertion about

The ASB transaction objective related to _____________________________ is to determine whether proper values have been assigned to all financial transactions.

Which of the following best describes the main reason that independent auditors report on management's financial statements?

The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing.

Which of the following is not an ASB assertion about inventory related to presentation and disclosure?

Independent auditors of financial statements perform audits that reduce

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