Question 1

The risk that an entity will fail to meet its objectives is referred to as

Accepted Answer

A)  Business risk. 
B)  Information risk. 
C)  Assurance risk. 
D)  Audit risk. 
A)  Business risk. 
B)  Information risk. 
C)  Assurance risk. 
D)  Audit risk.

Question 2

The goal of operational auditing is to

Accepted Answer

A)  Help managers discharge their management responsibilities and improve profitability. 
B)  Evaluate compliance with specific laws and regulations. 
C)  Reduce to a socially acceptable level the information risk to users of financial statements. 
D)  Express an opinion on the fairness of financial statements. 
A)  Help managers discharge their management responsibilities and improve profitability. 
B)  Evaluate compliance with specific laws and regulations. 
C)  Reduce to a socially acceptable level the information risk to users of financial statements. 
D)  Express an opinion on the fairness of financial statements.

Question 3

The process by which a CPA obtains a certificate and license in a state other than the state in which the CPA's certificate was originally obtained is referred to as

Accepted Answer

A)  Substantial equivalency. 
B)  Quid pro quo. 
C)  Relicensing. 
D)  Re-examination 
A)  Substantial equivalency. 
B)  Quid pro quo. 
C)  Relicensing. 
D)  Re-examination

Question 4

The accounting,auditing,and investigating agency of the U.S.Congress that is headed by the U.S.Comptroller General is known as

Accepted Answer

A)  The Federal Bureau of Investigation (FBI). 
B)  The U.S. General Accountability Office (GAO). 
C)  The Internal Revenue Service (IRS). 
D)  The United States Legislative Auditors (USL
A) . 
A)  The Federal Bureau of Investigation (FBI). 
B)  The U.S. General Accountability Office (GAO). 
C)  The Internal Revenue Service (IRS). 
D)  The United States Legislative Auditors (USL
A) .

Question 5

Which of the following is not a PCAOB 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 its cost on the balance sheet. 
C)  Major inventory categories and their valuation bases are adequately disclosed in notes. 
D)  All of the above are PCAOB 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 its cost on the balance sheet. 
C)  Major inventory categories and their valuation bases are adequately disclosed in notes. 
D)  All of the above are PCAOB presentation and disclosure assertions about inventory.

Question 6

Which of the following best describes the focus of the following engagements?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 7

Examples of _______________________________ are (1)economy and efficiency audits and (2)program audits.

Accepted Answer

The answer of Examples of _______________________________ are (1)economy and efficiency...

Question 8

In order to be considered as external auditors with respect to government agencies,GAO auditors must be

Accepted Answer

A)  Organizationally independent. 
B)  Empowered as the accounting and auditing agency by the U.S. Congress. 
C)  Funded by the federal government. 
D)  Guided by standards similar to GAAS. 
A)  Organizationally independent. 
B)  Empowered as the accounting and auditing agency by the U.S. Congress. 
C)  Funded by the federal government. 
D)  Guided by standards similar to GAAS.

Question 9

According to the American Accounting Association (AAA),the definition of auditing includes the following statement

Accepted Answer

A)  An independent appraisal function established within an organization to examine and evaluate its activities. 
B)  A process of reducing to a socially acceptable level the information risk to users of financial statements. 
C)  An expression of opinion on the fairness of financial statements. 
D)  A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events. 
A)  An independent appraisal function established within an organization to examine and evaluate its activities. 
B)  A process of reducing to a socially acceptable level the information risk to users of financial statements. 
C)  An expression of opinion on the fairness of financial statements. 
D)  A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events.

Question 10

When auditing merchandise inventory at year-end,the auditor performs audit procedures to obtain evidence that no goods held on consignment are included in the client's ending inventory balance.This audit procedure provides assurance about which management assertion?

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 11

What is operational auditing and by whom is it performed?

Accepted Answer

Operational auditing is the evaluation o

Question 12

Jones,CPA,is planning the audit of Rhonda's Company.Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts.Rhonda's representation in this regard

Accepted Answer

A)  Is sufficient evidence for Jones to conclude that the completeness assertion is supported for expenses. 
B)  Can enable Jones to minimize the work on the gathering of evidence to support Rhonda's completeness assertion. 
C)  Should be disregarded because it is not in writing. 
D)  Is not considered a sufficient basis for Jones to conclude that all expenses have been recorded. 
A)  Is sufficient evidence for Jones to conclude that the completeness assertion is supported for expenses. 
B)  Can enable Jones to minimize the work on the gathering of evidence to support Rhonda's completeness assertion. 
C)  Should be disregarded because it is not in writing. 
D)  Is not considered a sufficient basis for Jones to conclude that all expenses have been recorded.

Question 13

Performance audits usually include

Accepted Answer

A)  Financial audits. 
B)  Economy and efficiency audits. 
C)  Compliance audits. 
D)  Program audits. 
A)  Financial audits. 
B)  Economy and efficiency audits. 
C)  Compliance audits. 
D)  Program audits.

Question 14

In performing an attestation engagement,a CPA typically

Accepted Answer

A)  Supplies litigation support services. 
B)  Assesses control risk at a low level. 
C)  Expresses a conclusion on an assertion about some type of subject matter. 
D)  Provides management consulting advice. 
A)  Supplies litigation support services. 
B)  Assesses control risk at a low level. 
C)  Expresses a conclusion on an assertion about some type of subject matter. 
D)  Provides management consulting advice.

Question 15

Through the process of ____________________________,after becoming a CPA licensed in one state,a person can obtain a CPA certificate and license in another state.

Accepted Answer

substantia

The risk that an entity will fail to meet its objectives is referred to as

The goal of operational auditing is to

The process by which a CPA obtains a certificate and license in a state other than the state in which the CPA's certificate was originally obtained is referred to as

The accounting,auditing,and investigating agency of the U.S.Congress that is headed by the U.S.Comptroller General is known as

Which of the following is not a PCAOB assertion about inventory related to presentation and disclosure?

Which of the following best describes the focus of the following engagements?

Examples of _______________________________ are (1)economy and efficiency audits and (2)program audits.

In order to be considered as external auditors with respect to government agencies,GAO auditors must be

According to the American Accounting Association (AAA),the definition of auditing includes the following statement

When auditing merchandise inventory at year-end,the auditor performs audit procedures to obtain evidence that no goods held on consignment are included in the client's ending inventory balance.This audit procedure provides assurance about which management assertion?

What is operational auditing and by whom is it performed?

Jones,CPA,is planning the audit of Rhonda's Company.Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts.Rhonda's representation in this regard

Performance audits usually include

In performing an attestation engagement,a CPA typically

Through the process of ____________________________,after becoming a CPA licensed in one state,a person can obtain a CPA certificate and license in another state.

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 risk that an entity will fail to meet its objectives is referred to as

The goal of operational auditing is to

The process by which a CPA obtains a certificate and license in a state other than the state in which the CPA's certificate was originally obtained is referred to as

The accounting,auditing,and investigating agency of the U.S.Congress that is headed by the U.S.Comptroller General is known as

Which of the following is not a PCAOB assertion about inventory related to presentation and disclosure?

Which of the following best describes the focus of the following engagements?

Examples of _______________________________ are (1)economy and efficiency audits and (2)program audits.

In order to be considered as external auditors with respect to government agencies,GAO auditors must be

According to the American Accounting Association (AAA),the definition of auditing includes the following statement

When auditing merchandise inventory at year-end,the auditor performs audit procedures to obtain evidence that no goods held on consignment are included in the client's ending inventory balance.This audit procedure provides assurance about which management assertion?

What is operational auditing and by whom is it performed?

Jones,CPA,is planning the audit of Rhonda's Company.Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts.Rhonda's representation in this regard

Performance audits usually include

In performing an attestation engagement,a CPA typically

Through the process of ____________________________,after becoming a CPA licensed in one state,a person can obtain a CPA certificate and license in another state.

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