Exam 1: Auditing and Assurance Services

Financial decision makers obtain their accounting information from lenders of funds.

Independent auditors are employees of the client.

_____________________________ governmental auditing goes beyond an audit of financial reports and compliance with laws and regulations to include _____________________________ and _____________________________ and _____________________________ _____________________________ audits.

The Sarbanes-Oxley Act of 2002 generally prohibits professional service firms from

The ASB balance audit objective related to valuation or accuracy is to determine whether proper values have been assigned to assets,liabilities,equities,revenues,and expenses.

Because of the risk of material misstatement,an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of

The four basic requirements for becoming a CPA are ____________________________,____________________________,____________________________,and ____________________________.

The audit objective of presenting all transactions and accounts in the financial statements are in fact included is related to which of the PCAOB assertions?

The ASB balance objective related to _____________________________ is to establish with evidence that all transactions and accounts that should be presented in the financial statements are included.

What is the term used to identify the risk that the client's financial statements may be materially false and misleading?

CPA certificates and licenses to practice are issued by the

Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about the PCAOB assertion of

The audit objective that all transactions are recorded in the proper account is related most closely to which one of the ASB transaction assertions?

Which of the following is not included in The American Accounting Association (AAA)definition of auditing?

When auditing merchandise inventory at year-end,the auditor performs audit procedures to ensure that all goods purchased before year-end are received before the physical inventory count.This audit procedure provides assurance about which management assertion?

_____________________________ refers to recognizing assets and liabilities as of proper date and accounting for revenue,expense,and other transactions in the proper period.

Financial decision makers demand reliable information that is provided by accountants.

A determination of cost savings obtained by outsourcing cafeteria services is most likely to be an objective of

The audit objective that footnotes in the financial statements should be clear and expressed so that the information is easily conveyed to the readers of the financial statements is related most closely with which of the ASB presentation and disclosure assertions?

The audit objective that all transactions are recorded in the proper period is related most closely to which of the Audit Standards Board (ASB)transaction assertions?