Exam 2: The Financial Statement Auditing Environment

The IAASB and the ASB collaborated on a replacement for the 10 GAAS standards which include principles underlying an audit conducted in accordance with generally accepted auditing standards.

The auditor must be independent of the auditee unless

One of the five basic business processes is the warehousing cycle.

The primary responsibility for the adequacy of disclosures in the financial statements of a publicly held company rests with the

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

Mike has just graduated from State University with a bachelor's degree in accounting. He would like to pursue a career in auditing. What options does Mike have? Describe three auditing career options, including a description of the organization Mike would work for.

Define corporate governance, the board of directors, and the audit committee and explain how they relate to each other.

A CPA is most likely to refer to one or more of the three PCAOB general auditing standards in determining

The largest public accounting firms typically are structured as

What are the three PCAOB general auditing standards found within the 10 GAAS (NOT the three main categories of GAAS) and why is each important?

The first PCAOB standard of reporting requires that, "the report shall state whether the financial statements are presented in accordance with generally accepted accounting principles." This passage requires

Which of the following is not explicitly a part of the IIA's definition of internal auditing?

Which of the following best describes the general character of the three PCAOB generally accepted auditing standards that are classified as standards of fieldwork?

The Audit Committee consists of

Due professional care requires

You are the owner of a small grocery store, Corner Marketplace. Explain the five process categories and how they apply to your business.

What is the general character of the work conducted in performing a forensic audit for a company?

There are several types of audit services that are provided by auditors. Identify and define three of these types of audits.

The primary audit context with which an auditor is concerned is the auditee's industry or business.

Which of the following statements regarding the PCAOB is incorrect?