Exam 1: The Demand for Audit and Other Assurance Services

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Match the engagement described to the (A) type of audit and (B) auditor that would perform the engagement. Each engagement will have an answer from List-A and List-B. An answer can be used once, more than once, or not at all. Engagement: 1. Evaluate a company's payroll processing for economy. 2. Evaluate/determine if bank covenants are being met. 3. Evaluate financial statements that are to be submitted to a bank. 4. Evaluate the promptness of materials inspection in a manufacturer's receiving department. 5. Determine if Medicare reimbursements are in accordance with the Healthcare Financing Administration (HCFA). 6. Determine if the tax return of a multinational corporation is in accordance with the tax code. 7. Determine if a public school is properly applying their reimbursement for the payment-in-kind program. 8. Determine the effectiveness of the department of defense starwars project.

(Essay)

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Question 21

What is a WebTrust engagement? What is a SysTrust engagement? How do they differ?

(Essay)

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Question 22

Evidence is paramount to audit and attestation engagements. List the four basic types of audit evidence.

(Essay)

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Question 23

The Sarbanes-Oxley Act prohibits a CPA firm that audits a public company from providing which of the following types of services to that company?

(Multiple Choice)

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Question 24

Financial statement users often receive unreliable financial information from companies. Which of the following is not a common reason for this?

(Multiple Choice)

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Question 25

In "auditing" financial accounting data, the primary concern is with:

(Multiple Choice)

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Question 26

The use of the Certified Public Accountant title is regulated by:

(Multiple Choice)

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Question 27

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

(Essay)

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Question 28

An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

(Multiple Choice)

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Question 29

Discuss the similarities and differences between financial statement audits, operational audits, and compliance audits. Give an example of each type.

(Essay)

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Question 30

The Sarbanes-Oxley Act is widely viewed as having ushered in sweeping changes to auditing and financial reporting.

(True/False)

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Question 31

What is an engagement to attest on internal control over financial reporting?

(Essay)

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Question 32

Which of the following is not a SysTrust Services principle as defined by the AICPA?

(Multiple Choice)

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Question 33

Which of the following services provides the lowest level of assurance on a financial statement?

(Multiple Choice)

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Question 34

Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.

(True/False)

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Question 35

Most public companies' audited financial statements are available on the SEC's EDGAR database.

(True/False)

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Question 36

Which of the following is considered audit evidence?

(Multiple Choice)

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Question 37

The trait that distinguishes auditors from accountants is the:

(Multiple Choice)

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Question 38

Section 404 of the Sarbanes-Oxley Act requires public companies to have an external auditor attest to their internal control over financial reporting.

(True/False)

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Question 39

Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

(Multiple Choice)

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Question 40

Showing 21 - 40 of 47

Exam 1: The Demand for Audit and Other Assurance Services

What is a WebTrust engagement? What is a SysTrust engagement? How do they differ?

Evidence is paramount to audit and attestation engagements. List the four basic types of audit evidence.

The Sarbanes-Oxley Act prohibits a CPA firm that audits a public company from providing which of the following types of services to that company?

Financial statement users often receive unreliable financial information from companies. Which of the following is not a common reason for this?

In "auditing" financial accounting data, the primary concern is with:

The use of the Certified Public Accountant title is regulated by:

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

Discuss the similarities and differences between financial statement audits, operational audits, and compliance audits. Give an example of each type.

The Sarbanes-Oxley Act is widely viewed as having ushered in sweeping changes to auditing and financial reporting.

What is an engagement to attest on internal control over financial reporting?

Which of the following is not a SysTrust Services principle as defined by the AICPA?

Which of the following services provides the lowest level of assurance on a financial statement?

Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.

Most public companies' audited financial statements are available on the SEC's EDGAR database.

Which of the following is considered audit evidence?

The trait that distinguishes auditors from accountants is the:

Section 404 of the Sarbanes-Oxley Act requires public companies to have an external auditor attest to their internal control over financial reporting.

Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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