Question 1

Economy is related to

Accepted Answer

A) Efficiency variance. 
B) Volume variance. 
C) Price variance. 
D) Capacity variance. 
A) Efficiency variance. 
B) Volume variance. 
C) Price variance. 
D) Capacity variance.

Question 2

A review engagement consists primarily of enquiry, analytical procedures, and discussion.List some specific examples of the question the accountant could ask or the procedures the accountant could perform on a review engagement.

Accepted Answer

Typical review procedures could include

Question 3

When unaudited financial statements are presented in comparative form with audited financial statements, such statements should be

Accepted Answer

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

Question 4

Ordinarily, which of the following procedures should be applied when an independent accountant conducts a review of interim financial information of a publicly held company?

Accepted Answer

A) Verify changes in key account balances. 
B) Read the minutes of the board of directors' meetings. 
C) Inspect the open purchase order file. 
D) Perform cut-off tests for cash receipts and disbursements. 
A) Verify changes in key account balances. 
B) Read the minutes of the board of directors' meetings. 
C) Inspect the open purchase order file. 
D) Perform cut-off tests for cash receipts and disbursements.

Question 5

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

Accepted Answer

A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
C) A prospective engagement to project, for a period of time not to exceed one year, and report on the expected benefits of the entity's internal control structure. 
D) A consulting engagement to provide constructive advice to the entity on its internal control system. 
A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
C) A prospective engagement to project, for a period of time not to exceed one year, and report on the expected benefits of the entity's internal control structure. 
D) A consulting engagement to provide constructive advice to the entity on its internal control system.

Question 6

The environmental audit evaluates a company's operations and performance in terms of conformity with federal, provincial, and municipal laws and regulations.

Accepted Answer

A) True 
 B)False

Question 7

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

Accepted Answer

A) True 
 B)False

Question 8

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practicing in Canada should

Accepted Answer

A) Understand the accounting principles that are generally accepted in the other country. 
B) Be certified by the appropriate auditing or accountancy board of the other country. 
C) Notify management that the auditor is required to deny an opinion on the financial statements. 
D) Recast the financial statements according to Canadian GAAP. 
A) Understand the accounting principles that are generally accepted in the other country. 
B) Be certified by the appropriate auditing or accountancy board of the other country. 
C) Notify management that the auditor is required to deny an opinion on the financial statements. 
D) Recast the financial statements according to Canadian GAAP.

Question 9

The purpose of an operational audit is to:

Accepted Answer

A) Determine the effectiveness of internal controls. 
B) Detect material misstatements in the company's financial statements. 
C) Provide assurance on fair presentation of company financial statements. 
D) Assess the economy, efficiency and effectiveness of resources and objectives. 
A) Determine the effectiveness of internal controls. 
B) Detect material misstatements in the company's financial statements. 
C) Provide assurance on fair presentation of company financial statements. 
D) Assess the economy, efficiency and effectiveness of resources and objectives.

Economy is related to

A review engagement consists primarily of enquiry, analytical procedures, and discussion.List some specific examples of the question the accountant could ask or the procedures the accountant could perform on a review engagement.

When unaudited financial statements are presented in comparative form with audited financial statements, such statements should be

Ordinarily, which of the following procedures should be applied when an independent accountant conducts a review of interim financial information of a publicly held company?

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

The environmental audit evaluates a company's operations and performance in terms of conformity with federal, provincial, and municipal laws and regulations.

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practicing in Canada should

The purpose of an operational audit is to:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Fraud Awareness Auditing

Filters

Exam 16: Other Public Accounting Services and Reports

Economy is related to

A review engagement consists primarily of enquiry, analytical procedures, and discussion.List some specific examples of the question the accountant could ask or the procedures the accountant could perform on a review engagement.

When unaudited financial statements are presented in comparative form with audited financial statements, such statements should be

Ordinarily, which of the following procedures should be applied when an independent accountant conducts a review of interim financial information of a publicly held company?

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

The environmental audit evaluates a company's operations and performance in terms of conformity with federal, provincial, and municipal laws and regulations.

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practicing in Canada should

The purpose of an operational audit is to:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Fraud Awareness Auditing

Filters