Question 1

During the first phase of an audit, a CPA most likely would

Accepted Answer

A)  Identify specific internal control activities that are likely to prevent fraud. 
B)  Evaluate the reasonableness of the company's accounting estimates. 
C)  Evaluate the integrity of management. 
D)  Inquire of the company's attorney as to whether any unrecorded claims are probable or asserted. 
A)  Identify specific internal control activities that are likely to prevent fraud. 
B)  Evaluate the reasonableness of the company's accounting estimates. 
C)  Evaluate the integrity of management. 
D)  Inquire of the company's attorney as to whether any unrecorded claims are probable or asserted.

Question 2

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

Accepted Answer

A)  All audits involve obtaining the same evidence. 
B)  All audits involve evaluating evidence in the same manner. 
C)  There should be a well-planned approach for obtaining and evaluating evidence. 
D)  All assertions are equally important for all audits. 
A)  All audits involve obtaining the same evidence. 
B)  All audits involve evaluating evidence in the same manner. 
C)  There should be a well-planned approach for obtaining and evaluating evidence. 
D)  All assertions are equally important for all audits.

Question 3

Which of the following is true with respect to the auditor's report?

Accepted Answer

A)  The report indicates that the company's financial statements were audited in accordance with generally accepted accounting standards. 
B)  The report indicates that the company's financial statements were audited in accordance with applicable auditing standards. 
C)  The report indicates that the company's financial statements were audited in accordance with the auditor's best judgment. 
D)  The report indicates that the company's financial statements were audited in accordance with statements issued by the FASB. 
A)  The report indicates that the company's financial statements were audited in accordance with generally accepted accounting standards. 
B)  The report indicates that the company's financial statements were audited in accordance with applicable auditing standards. 
C)  The report indicates that the company's financial statements were audited in accordance with the auditor's best judgment. 
D)  The report indicates that the company's financial statements were audited in accordance with statements issued by the FASB.

Question 4

Explain the relationship between sample size, materiality, and desired level of assurance.

Accepted Answer

The size of a sample is influenced by th

Question 5

Name and discuss the seven phases of the audit process.

Accepted Answer

1. Client acceptance/continuance: To min

Question 6

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

Accepted Answer

A)  To promote an adversarial relationship between the auditor and the corporation's management. 
B)  To enhance auditor independence from the management of the corporation. 
C)  To encourage a policy of rotation of the independent auditors. 
D)  To give management more leverage over the auditor's decisions. 
A)  To promote an adversarial relationship between the auditor and the corporation's management. 
B)  To enhance auditor independence from the management of the corporation. 
C)  To encourage a policy of rotation of the independent auditors. 
D)  To give management more leverage over the auditor's decisions.

During the first phase of an audit, a CPA most likely would

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

Which of the following is true with respect to the auditor's report?

Explain the relationship between sample size, materiality, and desired level of assurance.

Name and discuss the seven phases of the audit process.

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financing Investing Process: Prepaid Expenses Intangible Assets and Property Plant and Equipment

Auditing the Financing Investing Process: Long-Term Liabilities Stockholders Equity and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters

Exam 1: An Introduction to Assurance and Financial Statement Auditing

During the first phase of an audit, a CPA most likely would

Auditing is defined as a "systematic process of objectively obtaining and evaluating evidence regarding assertions..." What is meant by "systematic process"?

Which of the following is true with respect to the auditor's report?

Explain the relationship between sample size, materiality, and desired level of assurance.

Name and discuss the seven phases of the audit process.

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financing Investing Process: Prepaid Expenses Intangible Assets and Property Plant and Equipment

Auditing the Financing Investing Process: Long-Term Liabilities Stockholders Equity and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters