Exam 14: Activities Required in Completing a Quality Audit

The partner performing an engagement quality review will review the working papers and financial statements but will not perform which of the following?

(Multiple Choice)

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Question 61

Client continuance-related risks do not include which of the following key type of risk?

(Multiple Choice)

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Question 62

According to the Foreign Corrupt Practices Act of 1977 (FCPA), companies that have securities listed on U.S. markets must make and keep financial records that accurately and fairly reflect the transactions of the company and design and maintain an adequate system of internal accounting controls.

(True/False)

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Question 63

If the auditor continues to have substantial doubt about the client continuing as a going concern, the auditor should evaluate the adequacy of the client's related disclosures.

(True/False)

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Question 64

The auditor generally reports things that management could do better in a management letter as a constructive part of the audit.

(True/False)

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Question 65

In a quality audit, the auditor will review management's processes for certification to provide reasonable assurance that those processes are adequate and that they can be relied upon.

(True/False)

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Question 66

As part of a quality audit, the audit firm must have policies and procedures in place for conducting an engagement quality review of each audit before issuing the audit opinion for public companies.

(True/False)

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Question 67

Significant changes in the competitive market and a decrease in the competitiveness of the client's products are potential indicators of going-concern problems.

(True/False)

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Question 68

Most audit firms use a schedule to accumulate the known and projected misstatements and the carryover effects of prior-year uncorrected misstatements.

(True/False)

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Question 69

Which of the following activities is not a step in the process for using analytical procedures?

(Multiple Choice)

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Question 70

An audit firm culture that emphasizes "doing the right thing" does not incorporate which of the following to enhance audit quality?

(Multiple Choice)

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Question 71

Which of the following correctly states the period for which the auditor is responsible for subsequent events?

(Multiple Choice)

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Question 72

If substantial doubt remains about going concern for a client at the end of the audit, then which of the following reports should the auditor typically issue?

(Multiple Choice)

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Question 73

Which of the following would be a Type II subsequent event?

(Multiple Choice)

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Question 74

Which of the following is not a reason why the auditor needs to take special care to review significant estimates in the financial statements?

(Multiple Choice)

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Question 75

Litigation, claims, and assessments. Discuss the information management should provide related to litigation, claims and assessments. Also describe the purpose of the letter of audit inquiry, who writes it, who it is addressed to, and the important inquiries that are made of the client's lawyer in the letter of audit inquiry.

(Essay)

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Question 76

The audit documentation when performing an engagement quality review should include such information such as how much the firm paid for the review.

(True/False)

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Question 77

The AICPA Auditing Standards Board (ASB) requires a 5-year mandatory cooling off period for partner rotation.

(True/False)

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Question 78

Management responsibilities. Explain how management explicitly asserts their confidence and responsibility over the financial statements of the company.

(Essay)

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Question 79

Which of the following is not a required communication with the audit committee?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 184

The partner performing an engagement quality review will review the working papers and financial statements but will not perform which of the following?

Client continuance-related risks do not include which of the following key type of risk?

According to the Foreign Corrupt Practices Act of 1977 (FCPA), companies that have securities listed on U.S. markets must make and keep financial records that accurately and fairly reflect the transactions of the company and design and maintain an adequate system of internal accounting controls.

If the auditor continues to have substantial doubt about the client continuing as a going concern, the auditor should evaluate the adequacy of the client's related disclosures.

The auditor generally reports things that management could do better in a management letter as a constructive part of the audit.

In a quality audit, the auditor will review management's processes for certification to provide reasonable assurance that those processes are adequate and that they can be relied upon.

As part of a quality audit, the audit firm must have policies and procedures in place for conducting an engagement quality review of each audit before issuing the audit opinion for public companies.

Significant changes in the competitive market and a decrease in the competitiveness of the client's products are potential indicators of going-concern problems.

Most audit firms use a schedule to accumulate the known and projected misstatements and the carryover effects of prior-year uncorrected misstatements.

Which of the following activities is not a step in the process for using analytical procedures?

An audit firm culture that emphasizes "doing the right thing" does not incorporate which of the following to enhance audit quality?

Which of the following correctly states the period for which the auditor is responsible for subsequent events?

If substantial doubt remains about going concern for a client at the end of the audit, then which of the following reports should the auditor typically issue?

Which of the following would be a Type II subsequent event?

Which of the following is not a reason why the auditor needs to take special care to review significant estimates in the financial statements?

The audit documentation when performing an engagement quality review should include such information such as how much the firm paid for the review.

The AICPA Auditing Standards Board (ASB) requires a 5-year mandatory cooling off period for partner rotation.

Management responsibilities. Explain how management explicitly asserts their confidence and responsibility over the financial statements of the company.

Which of the following is not a required communication with the audit committee?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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