Question 1

The reason for adopting the CASs is to

Accepted Answer

A)  comply with requirements in the Canada Business Corporations Act. 
B)  respond to the increased litigation risks faced by auditors. 
C)  be consistent with the international standards of auditing. 
D)  simplify the auditing process. 
A)  comply with requirements in the Canada Business Corporations Act. 
B)  respond to the increased litigation risks faced by auditors. 
C)  be consistent with the international standards of auditing. 
D)  simplify the auditing process.

Question 2

What is an auditor required to do with respect to a client's financial reporting framework?

Accepted Answer

A)  assess whether the framework selected by management is suitable 
B)  select an applicable framework for use with the financial statements 
C)  make sure that ASPE or ASNPO are in use for publicly listed companies 
D)  select the accounting principles to be used as part of the reporting framework 
A)  assess whether the framework selected by management is suitable 
B)  select an applicable framework for use with the financial statements 
C)  make sure that ASPE or ASNPO are in use for publicly listed companies 
D)  select the accounting principles to be used as part of the reporting framework

Question 3

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 and responsibilities within the firm 
B)  general human resource policies 
C)  extent of professional development 
D)  engagement performance 
A)  leadership and responsibilities within the firm 
B)  general human resource policies 
C)  extent of professional development 
D)  engagement performance

Question 4

The risk response phases of conducting the financial statement audit using a risk assessment approach includes

Accepted Answer

A)  conducting an independence threat analysis to evaluate independence. 
B)  preparation of the final auditor's report in response to audit findings. 
C)  identification of risks of material misstatement at the client. 
D)  gathering evidence to assess the likelihood of material misstatement. 
A)  conducting an independence threat analysis to evaluate independence. 
B)  preparation of the final auditor's report in response to audit findings. 
C)  identification of risks of material misstatement at the client. 
D)  gathering evidence to assess the likelihood of material misstatement.

Question 5

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

Accepted Answer

A)  general 
B)  examination 
C)  reporting 
D)  quality control 
A)  general 
B)  examination 
C)  reporting 
D)  quality control

Question 6

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in three categories: qualifications and conduct, performance of the audit, and reporting of results. 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 7

Which of the following rights is necessary for the completion of an audit?

Accepted Answer

A)  The right to obtain copies of all documentation needed to conduct the audit. 
B)  The right to advise management regarding how it should set up its records. 
C)  The right to publish information when management engages in fraud. 
D)  The right to have access to the necessary records, information, and explanations. 
A)  The right to obtain copies of all documentation needed to conduct the audit. 
B)  The right to advise management regarding how it should set up its records. 
C)  The right to publish information when management engages in fraud. 
D)  The right to have access to the necessary records, information, and explanations.

Question 8

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?

Accepted Answer

A)  general ethical requirements 
B)  independence 
C)  general human resource policies 
D)  engagement performance 
A)  general ethical requirements 
B)  independence 
C)  general human resource policies 
D)  engagement performance

The reason for adopting the CASs is to

What is an auditor required to do with respect to a client's financial reporting framework?

The risk response phases of conducting the financial statement audit using a risk assessment approach includes

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

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in three categories: qualifications and conduct, performance of the audit, and reporting of results. How do these standards provide guidance to auditors?

Which of the following rights is necessary for the completion of an audit?

The Demand for Audit and Other Assurance Services

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

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

The reason for adopting the CASs is to

What is an auditor required to do with respect to a client's financial reporting framework?

The risk response phases of conducting the financial statement audit using a risk assessment approach includes

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

CAS 200 provides overall objectives of the independent auditor during the conduct of an audit in three categories: qualifications and conduct, performance of the audit, and reporting of results. How do these standards provide guidance to auditors?

Which of the following rights is necessary for the completion of an audit?

The Demand for Audit and Other Assurance Services

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

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