Exam 2:The Public Accounting Profession and Audit Quality

There are many elements of quality control at the firm level.Which element does the statement "management within a firm should ensure that qualified personnel monitor and address non-compliance with quality-control procedures" fall under?

The implementation of the Sarbanes-Oxley requirements in the U.S.resulted in increased independence requirements for auditors.The impact of this requirement in Canada was

What is the purpose of assurance standards issued by the AASB (Auditing and Assurance Standards Board)in Canada?

The implementation of the Sarbanes-Oxley requirements in the U.S.resulted in the creation of the PCAOB to oversee listed companies' auditors and develop audit standards.The impact of this requirement in Canada was

The most common organizational form used by public accounting firms is

Adequate technical training and proficiency in auditing is a requirement of which category of generally accepted auditing standards?

Adequate planning and execution to reduce risk to an acceptable level is a requirement of which category of Canadian auditing standards (CAS)?

Professional skepticism during the financial statement audit requires an appropriate state of mind: being impartial and objective and continuing to be throughout the whole audit engagement.Which of the following illustrates an appropriate state of mind?

Approximately how many public accounting firms in Canada have more than 50 professional staff?

During which phase(s)of the financial statement audit does the auditor "evaluate evidence" when using a risk assessment approach?

The Sarbanes-Oxley Act of 2002 made it a felony to

What are the different business organization structures that an accountant may use? What are the advantages of these structures?

Larger audits may have established procedures that utilize an audit committee whenever there is a dispute between management and the auditors.What is the purpose of such procedures?

For a CPA working as a sole practitioner or working in a small public accounting office,the provincial practice inspectors will likely come to review audit files

For each of the following situations,state which element of the profession or society encourages the public accountant to conduct himself at a high level.A)Marco attended a seminar on the topic of business combinations to ensure he was up to date with the new standard. B)Barbara referred to the standard on hedging to ensure that her client had the appropriate documentation to qualify for hedge accounting. C)Gretchen refused to perform the audit of her uncle's restaurant chain. D)Walid worked overtime all week to ensure that the file was properly documented and met the quality control requirements. E)Sarah took the summer off to study for the Common Final Examination (CFE)to ensure that she would pass the entrance exam to become a Chartered Professional Accountant.

General qualifications and conduct standards indicate that performance of all aspects of auditing should be performed with due care.This means that the auditor must fulfill his/her duties

Securities regulations in Canada are the responsibility of

National accounting firms in 2015 were those with

Who do the external auditors and the internal auditors usually report to?

Dimitri works at a large public accounting firm.Dimitri referred one of his friends for a junior auditor position.Dimitri's friend was hired despite the fact that he had a criminal record.The partner at the firm did not perform a background check on Dimitri's friend since he was recommended by an employee.Which element of quality control has been compromised?