Question 1

The audit report states that the audit provides:

Accepted Answer

A)  a guarantee of quality. 
B)  complete assurance that the financial statements are free from misstatements. 
C)  absolute assurance that the internal control environment is operating effectively. 
D)  None of the above. 
A)  a guarantee of quality. 
B)  complete assurance that the financial statements are free from misstatements. 
C)  absolute assurance that the internal control environment is operating effectively. 
D)  None of the above. D

Question 2

An integrated audit results in:

Accepted Answer

A)  an audit opinion on the financial statements. 
B)  an audit opinion on ICFR. 
C)  a series of reports to major stakeholders. 
D)  Both a and b 
A)  an audit opinion on the financial statements. 
B)  an audit opinion on ICFR. 
C)  a series of reports to major stakeholders. 
D)  Both a and b D

Question 3

To which of the following would AICPA attest standards not apply?

Accepted Answer

A)  SSARs. 
B)  Elder care. 
C)  Loans under TALF. 
D)  Internal control for a nonpublic company. 
A)  SSARs. 
B)  Elder care. 
C)  Loans under TALF. 
D)  Internal control for a nonpublic company. A

Question 4

Which of the following organizations is considered to be a public company?

Accepted Answer

A)  A firm whose privately held stock is owned exclusively by an individual. 
B)  A partnership of doctors. 
C)  A privately-held firm controlled by three family members. 
D)  A firm whose stock is registered with the SEC. 
A)  A firm whose privately held stock is owned exclusively by an individual. 
B)  A partnership of doctors. 
C)  A privately-held firm controlled by three family members. 
D)  A firm whose stock is registered with the SEC.

Question 5

Auditors consider internal control during the audit of a nonpublic company:

Accepted Answer

A)  For all the same purposes as on an audit of a public company. 
B)  To identify areas of risk and help to plan the financial statement audit. 
C)  To help to plan the financial statement audit and issue an opinion on effectiveness. 
D)  Only if they are sure it will be helpful when performing the financial statement audit. 
A)  For all the same purposes as on an audit of a public company. 
B)  To identify areas of risk and help to plan the financial statement audit. 
C)  To help to plan the financial statement audit and issue an opinion on effectiveness. 
D)  Only if they are sure it will be helpful when performing the financial statement audit.

Question 6

The auditor:

Accepted Answer

A)  prepares the financial statements after the client agrees to all adjustments. 
B)  writes the footnotes to the financial statements to ensure their accuracy. 
C)  performs work to reach an opinion on the ICFR and financial statements. 
D)  None of the above. 
A)  prepares the financial statements after the client agrees to all adjustments. 
B)  writes the footnotes to the financial statements to ensure their accuracy. 
C)  performs work to reach an opinion on the ICFR and financial statements. 
D)  None of the above.

Question 7

The Securities and Exchange Commission:

Accepted Answer

A)  Is a government entity. 
B)  Authorizes all PCAOB standards before they become effective. 
C)  Can reject company filings or suspend trading of company stocks. 
D)  All of the above. 
A)  Is a government entity. 
B)  Authorizes all PCAOB standards before they become effective. 
C)  Can reject company filings or suspend trading of company stocks. 
D)  All of the above.

Question 8

A public company must:

Accepted Answer

A)  register with the SEC. 
B)  undergo an integrated audit. 
C)  trade on a stock exchange. 
D)  Both a and b 
A)  register with the SEC. 
B)  undergo an integrated audit. 
C)  trade on a stock exchange. 
D)  Both a and b

Question 9

Which body regulates the audits of nonpublic companies in the United States?

Accepted Answer

A)  PCAOB 
B)  AICPA 
C)  IFRS 
D)  SEC 
A)  PCAOB 
B)  AICPA 
C)  IFRS 
D)  SEC

Question 10

Currently, the primary authoritative body that regulates individual CPAs is the Congress of the United States.

Accepted Answer

A) True 
 B)False

Question 11

The SEC is responsible for setting standards for not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 12

A non-equity partner likely:

Accepted Answer

A)  Shares in all of the work for the firm. 
B)  Is compensated by sharing in the profits of the firm. 
C)  Has partner responsibility for work performed. 
D)  All of the above. 
A)  Shares in all of the work for the firm. 
B)  Is compensated by sharing in the profits of the firm. 
C)  Has partner responsibility for work performed. 
D)  All of the above.

Question 13

Which of the following best describes the conclusions an auditor makes in an integrated audit that results in an audit report that is unqualified?

Accepted Answer

A)  The financial statements are fair according to GAAP. 
B)  The financial statements are free of material misstatement based on U.S. GAAP and management's report on internal control over financial reporting states that there are no material weaknesses. 
C)  The financial statements and internal control over financial reporting are materially correct. 
D)  The financial statements are free of material misstatement based on U.S. GAAP and based on the audit, the auditor agrees with management's report that internal control over financial reporting is effective and does not have any material weaknesses. 
A)  The financial statements are fair according to GAAP. 
B)  The financial statements are free of material misstatement based on U.S. GAAP and management's report on internal control over financial reporting states that there are no material weaknesses. 
C)  The financial statements and internal control over financial reporting are materially correct. 
D)  The financial statements are free of material misstatement based on U.S. GAAP and based on the audit, the auditor agrees with management's report that internal control over financial reporting is effective and does not have any material weaknesses.

Question 14

The "highest" level of a CPA firm hierarchy is:

Accepted Answer

A)  The shareholders. 
B)  The partners. 
C)  The managers. 
D)  Both a and b 
A)  The shareholders. 
B)  The partners. 
C)  The managers. 
D)  Both a and b

Question 15

A "clean" audit report states that:

Accepted Answer

A)  there are no errors in the financial statements. 
B)  the internal control environment is operating well. 
C)  the auditors evaluated evidence. 
D)  All of the above. 
A)  there are no errors in the financial statements. 
B)  the internal control environment is operating well. 
C)  the auditors evaluated evidence. 
D)  All of the above.

Question 16

Which of the following is a current responsibility of the AICPA?

Accepted Answer

A)  Writing and grading the CPA exam that is used by the states. 
B)  Issuing CPA certificates. 
C)  Setting international audit standards for nonpublic companies. 
D)  Writing the code of conduct that is adopted by all of the states. 
A)  Writing and grading the CPA exam that is used by the states. 
B)  Issuing CPA certificates. 
C)  Setting international audit standards for nonpublic companies. 
D)  Writing the code of conduct that is adopted by all of the states.

Question 17

The GASB:

Accepted Answer

A)  Sets audit standards for auditors engaged in auditing not-for-profit entities. 
B)  Regulates state and local governments. 
C)  Set reporting standards for state and local government entities. 
D)  All of the above. 
A)  Sets audit standards for auditors engaged in auditing not-for-profit entities. 
B)  Regulates state and local governments. 
C)  Set reporting standards for state and local government entities. 
D)  All of the above.

Question 18

The PCAOB jointly sets audit standards with the AICPA for publicly traded firms.

Accepted Answer

A) True 
 B)False

Question 19

The Sarbanes-Oxley Act limits the amount of non-attest services that auditors may perform for public companies they audit.

Accepted Answer

A) True 
 B)False

Question 20

Salaried partners of a CPA firm are compensated based on a share in the firm's profit.

Accepted Answer

A) True 
 B)False

The audit report states that the audit provides:

An integrated audit results in:

To which of the following would AICPA attest standards not apply?

Which of the following organizations is considered to be a public company?

Auditors consider internal control during the audit of a nonpublic company:

The auditor:

The Securities and Exchange Commission:

A public company must:

Which body regulates the audits of nonpublic companies in the United States?

Currently, the primary authoritative body that regulates individual CPAs is the Congress of the United States.

The SEC is responsible for setting standards for not-for-profit organizations.

A non-equity partner likely:

Which of the following best describes the conclusions an auditor makes in an integrated audit that results in an audit report that is unqualified?

The "highest" level of a CPA firm hierarchy is:

A "clean" audit report states that:

Which of the following is a current responsibility of the AICPA?

The GASB:

The PCAOB jointly sets audit standards with the AICPA for publicly traded firms.

The Sarbanes-Oxley Act limits the amount of non-attest services that auditors may perform for public companies they audit.

Salaried partners of a CPA firm are compensated based on a share in the firm's profit.

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

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Exam 1: An Introduction to Auditing

The audit report states that the audit provides:

An integrated audit results in:

To which of the following would AICPA attest standards not apply?

Which of the following organizations is considered to be a public company?

Auditors consider internal control during the audit of a nonpublic company:

The auditor:

The Securities and Exchange Commission:

A public company must:

Which body regulates the audits of nonpublic companies in the United States?

Currently, the primary authoritative body that regulates individual CPAs is the Congress of the United States.

The SEC is responsible for setting standards for not-for-profit organizations.

A non-equity partner likely:

Which of the following best describes the conclusions an auditor makes in an integrated audit that results in an audit report that is unqualified?

The "highest" level of a CPA firm hierarchy is:

A "clean" audit report states that:

Which of the following is a current responsibility of the AICPA?

The GASB:

The PCAOB jointly sets audit standards with the AICPA for publicly traded firms.

The Sarbanes-Oxley Act limits the amount of non-attest services that auditors may perform for public companies they audit.

Salaried partners of a CPA firm are compensated based on a share in the firm's profit.

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters