Question 1

What is one of the ways that high-profile business failures (such as Enron,WorldCom,and Nortel)have affected the auditing profession?

Accepted Answer

A) raised the cost of hiring accounting-firm professionals 
B) resulted in a need for decreased paperwork on audits 
C) lowered the number of professionals working on an audit engagement 
D) created increased focus on standards and high-quality audits 
A) raised the cost of hiring accounting-firm professionals 
B) resulted in a need for decreased paperwork on audits 
C) lowered the number of professionals working on an audit engagement 
D) created increased focus on standards and high-quality audits D

Question 2

When the criteria to be used in the financial statement audit are established,the auditor's responsibility is to

Accepted Answer

A) evaluate the reporting framework used. 
B) select the acceptable financial reporting framework. 
C) make a recommendation to management for selecting the framework. 
D) create and document the framework used. 
A) evaluate the reporting framework used. 
B) select the acceptable financial reporting framework. 
C) make a recommendation to management for selecting the framework. 
D) create and document the framework used. A

Question 3

There are many elements of quality control at the firm level.Which element does "work assignments that match employee competence and performance evaluations related to audit quality" relate to?

Accepted Answer

A) leadership responsibilities 
B) independence 
C) human resources 
D) extent of professional development 
A) leadership responsibilities 
B) independence 
C) human resources 
D) extent of professional development C

Question 4

22)A)Outline the reasons why provincial CPA organizations conduct practice inspections.
B)How often are these CPA practice inspections done?
C)What are the implications of these CPA practice inspections?

Accepted Answer

A)The provincial CPA organizations condu

Question 5

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in four categories.How do these standards provide guidance to auditors?

Accepted Answer

A) They detail what an auditor should do during each financial statement audit. 
B) They represent a framework for further discussion of detailed standards. 
C) They provide specific rules about how work should be done for evidence gathering. 
D) They explain how the audit report should be developed and distributed. 
A) They detail what an auditor should do during each financial statement audit. 
B) They represent a framework for further discussion of detailed standards. 
C) They provide specific rules about how work should be done for evidence gathering. 
D) They explain how the audit report should be developed and distributed.

Question 6

Jessica is a summer junior at Branes & Castle,a PA firm.Jessica has only completed three accounting courses in university and has not yet taken her auditing class.A team of auditors from Branes & Castle are starting an audit and Jessica was sent to help them.Jessica

Accepted Answer

A) can perform work for the audit engagement as long as she is supervised and proper review of her work is performed. 
B) should not perform any work pertaining to the audit engagement since she doesn't have sufficient knowledge. 
C) should be limited to assisting the audit team with support functions such as photocopying and file assembly. 
D) can perform work for the audit engagement on cycles where risk was assessed as low. 
A) can perform work for the audit engagement as long as she is supervised and proper review of her work is performed. 
B) should not perform any work pertaining to the audit engagement since she doesn't have sufficient knowledge. 
C) should be limited to assisting the audit team with support functions such as photocopying and file assembly. 
D) can perform work for the audit engagement on cycles where risk was assessed as low.

Question 7

Most international and national accounting firms in Canada are comprised of professional accountants with the designation

Accepted Answer

A) CIA. 
B) CPA. 
C) CFE. 
D) CISA. 
A) CIA. 
B) CPA. 
C) CFE. 
D) CISA.

Question 8

Farah is currently auditing Software Synx,a public company.After a long day of work,Farah goes for a drink with her friend John who mentions that he owns shares of Software Synx.Farah indicates that John should hold on to his shares as they will go up next week when the financial statements are released and show an increase of 12% for revenues.Which element of quality control is compromised by Farah?

Accepted Answer

A) relevant ethical requirements 
B) independence 
C) human resources 
D) engagement performance 
A) relevant ethical requirements 
B) independence 
C) human resources 
D) engagement performance

Question 9

A PA firm has an organizational structure that assures the technical review of every engagement by a partner who has expertise in the client's industry.This is an example of good

Accepted Answer

A) entity-level controls. 
B) adherence to professional standards. 
C) business risk management. 
D) quality controls. 
A) entity-level controls. 
B) adherence to professional standards. 
C) business risk management. 
D) quality controls.

Question 10

What is one of the ways that the Canadian Auditing Standards (CASs)make management directly responsible for an organization's financial statements?

Accepted Answer

A) all listed company management must certify the accuracy of the evidence provided 
B) management must provide evidence to support financial statement data 
C) management must implement and carry out development of high-quality internal controls 
D) companies must use internal auditors to assess the quality of the financial statements 
A) all listed company management must certify the accuracy of the evidence provided 
B) management must provide evidence to support financial statement data 
C) management must implement and carry out development of high-quality internal controls 
D) companies must use internal auditors to assess the quality of the financial statements

Question 11

CAS 200 explains that as part of general qualifications and conduct,the auditor should be professionally competent.Which of the following help the auditor achieve competence?

Accepted Answer

A) using due care in the performance of all aspects of auditing 
B) having an objective state of mind and independence from the client 
C) having formal education and practical experience,and pursuing continuing education 
D) conducting the audit using a risk-based approach and being skeptical 
A) using due care in the performance of all aspects of auditing 
B) having an objective state of mind and independence from the client 
C) having formal education and practical experience,and pursuing continuing education 
D) conducting the audit using a risk-based approach and being skeptical

Question 12

There are many elements of quality control at the firm level.Which element does "processes should exist for following up internal and external complaints" relate to?

Accepted Answer

A) engagement performance 
B) engagement quality control review 
C) monitoring 
D) human resources 
A) engagement performance 
B) engagement quality control review 
C) monitoring 
D) human resources

Question 13

What is the size of most small local public accounting firms in Canada?

Accepted Answer

A) fewer than 25 employees 
B) between 25 and 49 employees 
C) between 50 and 75 employees 
D) more than 75 employees 
A) fewer than 25 employees 
B) between 25 and 49 employees 
C) between 50 and 75 employees 
D) more than 75 employees

Question 14

Large accounting firms are often limited liability partnerships (LLPs)because if their audits are conducted in accordance with CAS (Canadian Auditing Standards),

Accepted Answer

A) partners not on the engagement would not be liable to pay with their personal assets when the LLP is sued. 
B) improved quality control practices can be initiated using technical personnel. 
C) more formal requirements are in place when reporting to federal tax authorities. 
D) partners are liable to pay with only a limited portion of their personal assets when the LLP is sued. 
A) partners not on the engagement would not be liable to pay with their personal assets when the LLP is sued. 
B) improved quality control practices can be initiated using technical personnel. 
C) more formal requirements are in place when reporting to federal tax authorities. 
D) partners are liable to pay with only a limited portion of their personal assets when the LLP is sued.

Question 15

There are many elements of quality control at the firm level.Which element does "adequate processes and procedures should be in place to ensure that the audit or review is conducted in accordance with GAAS,that quality control procedures are followed for each engagement,and that the audit is appropriately documented" relate to?

Accepted Answer

A) leadership responsibilities 
B) human resources 
C) extent of professional development 
D) engagement performance 
A) leadership responsibilities 
B) human resources 
C) extent of professional development 
D) engagement performance

Question 16

A key difference between the PCAOB in the U.S.and the CPAB in Canada is that

Accepted Answer

A) the CPAB is involved in the development of auditing standards. 
B) the PCAOB is involved in the development of auditing standards. 
C) the PCAOB conducts practice inspections of public company auditors. 
D) the CPAB conducts practice inspections of public company auditors. 
A) the CPAB is involved in the development of auditing standards. 
B) the PCAOB is involved in the development of auditing standards. 
C) the PCAOB conducts practice inspections of public company auditors. 
D) the CPAB conducts practice inspections of public company auditors.

Question 17

As per Canadian Auditing Standards CAS 200.11,the CAS helps the auditors fulfill which of the overall objectives relating to financial statement audits?

Accepted Answer

1)To provide reasonable assurance that t

Question 18

The Canadian Auditing Standards are organized around four principles.List and state the nature of these principles.

Accepted Answer

1.Purpose of the Audit:
•Purpose is to p

Question 19

CPAB's purpose is to

Accepted Answer

A) develop auditing standards. 
B) provide training and continuing education to auditors. 
C) clarify and communicate the role of the auditor to the public. 
D) improve the public's confidence in independent auditing. 
A) develop auditing standards. 
B) provide training and continuing education to auditors. 
C) clarify and communicate the role of the auditor to the public. 
D) improve the public's confidence in independent auditing.

Question 20

During which phases of the financial statement audit does the auditor "conduct quality control" when using a risk assessment approach?

Accepted Answer

A) the risk assessments 
B) the risk responses 
C) the reporting process 
D) performance and reporting phases 
A) the risk assessments 
B) the risk responses 
C) the reporting process 
D) performance and reporting phases

What is one of the ways that high-profile business failures (such as Enron,WorldCom,and Nortel)have affected the auditing profession?

When the criteria to be used in the financial statement audit are established,the auditor's responsibility is to

There are many elements of quality control at the firm level.Which element does "work assignments that match employee competence and performance evaluations related to audit quality" relate to?

22)A)Outline the reasons why provincial CPA organizations conduct practice inspections. B)How often are these CPA practice inspections done? C)What are the implications of these CPA practice inspections?

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in four categories.How do these standards provide guidance to auditors?

Jessica is a summer junior at Branes & Castle,a PA firm.Jessica has only completed three accounting courses in university and has not yet taken her auditing class.A team of auditors from Branes & Castle are starting an audit and Jessica was sent to help them.Jessica

Most international and national accounting firms in Canada are comprised of professional accountants with the designation

A PA firm has an organizational structure that assures the technical review of every engagement by a partner who has expertise in the client's industry.This is an example of good

What is one of the ways that the Canadian Auditing Standards (CASs)make management directly responsible for an organization's financial statements?

CAS 200 explains that as part of general qualifications and conduct,the auditor should be professionally competent.Which of the following help the auditor achieve competence?

There are many elements of quality control at the firm level.Which element does "processes should exist for following up internal and external complaints" relate to?

What is the size of most small local public accounting firms in Canada?

Large accounting firms are often limited liability partnerships (LLPs)because if their audits are conducted in accordance with CAS (Canadian Auditing Standards),

A key difference between the PCAOB in the U.S.and the CPAB in Canada is that

As per Canadian Auditing Standards CAS 200.11,the CAS helps the auditors fulfill which of the overall objectives relating to financial statement audits?

The Canadian Auditing Standards are organized around four principles.List and state the nature of these principles.

CPAB's purpose is to

During which phases of the financial statement audit does the auditor "conduct quality control" when using a risk assessment approach?

The Demand for Audit and Other Assurance Services

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters

Exam 2:The Public Accounting Profession and Audit Quality

What is one of the ways that high-profile business failures (such as Enron,WorldCom,and Nortel)have affected the auditing profession?

When the criteria to be used in the financial statement audit are established,the auditor's responsibility is to

There are many elements of quality control at the firm level.Which element does "work assignments that match employee competence and performance evaluations related to audit quality" relate to?

22)A)Outline the reasons why provincial CPA organizations conduct practice inspections. B)How often are these CPA practice inspections done? C)What are the implications of these CPA practice inspections?

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in four categories.How do these standards provide guidance to auditors?

Jessica is a summer junior at Branes & Castle,a PA firm.Jessica has only completed three accounting courses in university and has not yet taken her auditing class.A team of auditors from Branes & Castle are starting an audit and Jessica was sent to help them.Jessica

Most international and national accounting firms in Canada are comprised of professional accountants with the designation

A PA firm has an organizational structure that assures the technical review of every engagement by a partner who has expertise in the client's industry.This is an example of good

What is one of the ways that the Canadian Auditing Standards (CASs)make management directly responsible for an organization's financial statements?

CAS 200 explains that as part of general qualifications and conduct,the auditor should be professionally competent.Which of the following help the auditor achieve competence?

There are many elements of quality control at the firm level.Which element does "processes should exist for following up internal and external complaints" relate to?

What is the size of most small local public accounting firms in Canada?

Large accounting firms are often limited liability partnerships (LLPs)because if their audits are conducted in accordance with CAS (Canadian Auditing Standards),

A key difference between the PCAOB in the U.S.and the CPAB in Canada is that

As per Canadian Auditing Standards CAS 200.11,the CAS helps the auditors fulfill which of the overall objectives relating to financial statement audits?

The Canadian Auditing Standards are organized around four principles.List and state the nature of these principles.

CPAB's purpose is to

During which phases of the financial statement audit does the auditor "conduct quality control" when using a risk assessment approach?

The Demand for Audit and Other Assurance Services

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters