Question 1

National accounting firms in 2013 were those with

Accepted Answer

A)  offices in most major cities and revenues over $100 million. 
B)  international representation in most cities around the world. 
C)  offices in all major cities in Canada and revenues over $75 million. 
D)  national and international affiliations providing services in all major centres. 
A)  offices in most major cities and revenues over $100 million. 
B)  international representation in most cities around the world. 
C)  offices in all major cities in Canada and revenues over $75 million. 
D)  national and international affiliations providing services in all major centres.

Question 2

The most common organizational form used by public accounting firms is

Accepted Answer

A)  sole proprietorship or partnership. 
B)  professional corporation. 
C)  corporation. 
D)  co-operative. 
A)  sole proprietorship or partnership. 
B)  professional corporation. 
C)  corporation. 
D)  co-operative.

Question 3

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 4

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)  documentation 
D)  general human resource policies 
A)  engagement performance 
B)  engagement quality control review 
C)  documentation 
D)  general human resource policies

Question 5

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

Accepted Answer

A)  the creation of new auditing standards to ensure better quality control for audits. 
B)  revision to the rules of professional conduct for CPAs. 
C)  additional training requirements for becoming an auditor. 
D)  the creation of the CPAB to oversee Canadian audit professionals. 
A)  the creation of new auditing standards to ensure better quality control for audits. 
B)  revision to the rules of professional conduct for CPAs. 
C)  additional training requirements for becoming an auditor. 
D)  the creation of the CPAB to oversee Canadian audit professionals.

Question 6

The first step in the financial statement audit using a risk assessment approach is to

Accepted Answer

A)  identify risks of material misstatement. 
B)  gather evidence to assess the likelihood of material misstatement. 
C)  evaluate audit evidence. 
D)  evaluate the reporting framework. 
A)  identify risks of material misstatement. 
B)  gather evidence to assess the likelihood of material misstatement. 
C)  evaluate audit evidence. 
D)  evaluate the reporting framework.

Question 7

The Canada Business Corporation Act gave authority to Canadian accounting and auditing standard-setters by stating that financial statements

Accepted Answer

A)  must be compiled in accordance with International Financial Reporting Standards. 
B)  should be prepared in accordance with the standards in the CPA Canada Handbook. 
C)  must be audited by accountants that reside in Canada. 
D)  should be prepared in accordance with local financial reporting standards. 
A)  must be compiled in accordance with International Financial Reporting Standards. 
B)  should be prepared in accordance with the standards in the CPA Canada Handbook. 
C)  must be audited by accountants that reside in Canada. 
D)  should be prepared in accordance with local financial reporting standards.

Question 8

The most authoritative requirements for public accountants performing financial statement audits in Canada are the

Accepted Answer

A)  standards used by the client. 
B)  industry specific standards. 
C)  CPA Canada handbook requirements. 
D)  assurance guidelines. 
A)  standards used by the client. 
B)  industry specific standards. 
C)  CPA Canada handbook requirements. 
D)  assurance guidelines.

Question 9

There are many elements of quality control at the firm level. Which element does "adequate hiring policies (and documentation of their implementation) that ensure competence and integrity of personnel" relate to?

Accepted Answer

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

Question 10

Communicating the findings of the audit in accordance with CASs is a requirement of which category of generally accepted auditing standards?

Accepted Answer

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

Question 11

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 12

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 13

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 14

CAS 200 explains that as part of general qualifications and conduct, the auditor should exercise due care in the performance of all aspects of auditing. Which of the following is an illustration of due care?

Accepted Answer

A)  having an objective state of mind and independence from the client 
B)  having formal education and practical experience in the conduct of auditing 
C)  issuing a standard audit report using the CPA Canada Handbook specified wording 
D)  considering the completeness of the working papers 
A)  having an objective state of mind and independence from the client 
B)  having formal education and practical experience in the conduct of auditing 
C)  issuing a standard audit report using the CPA Canada Handbook specified wording 
D)  considering the completeness of the working papers

Question 15

What are the staff levels and responsibilities at Public Accounting firms?

Accepted Answer

1. Partner - Leads the engagement, revie

Question 16

The codes of professional conduct of the various accounting bodies are meant to

Accepted Answer

A)  provide a standard of conduct for all members, including those in public practice. 
B)  interpret the assurance recommendations and views of the AASB. 
C)  provide the rules underlying the audits and related service activities carried on by the accountants. 
D)  establish the norms for quality control of an audit. 
A)  provide a standard of conduct for all members, including those in public practice. 
B)  interpret the assurance recommendations and views of the AASB. 
C)  provide the rules underlying the audits and related service activities carried on by the accountants. 
D)  establish the norms for quality control of an audit.

Question 17

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 18

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 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

There are many elements of quality control at the firm level. Which element does the statement "quality control procedures should be developed, documented, implemented, and communicated" fall under?

Accepted Answer

A)  leadership and responsibilities within the firm 
B)  general ethical requirements 
C)  general human resource policies 
D)  engagement quality control review 
A)  leadership and responsibilities within the firm 
B)  general ethical requirements 
C)  general human resource policies 
D)  engagement quality control review

National accounting firms in 2013 were those with

The most common organizational form used by public accounting firms is

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

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?

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 first step in the financial statement audit using a risk assessment approach is to

The Canada Business Corporation Act gave authority to Canadian accounting and auditing standard-setters by stating that financial statements

The most authoritative requirements for public accountants performing financial statement audits in Canada are the

There are many elements of quality control at the firm level. Which element does "adequate hiring policies (and documentation of their implementation) that ensure competence and integrity of personnel" relate to?

Communicating the findings of the audit in accordance with CASs is a requirement of which category of generally accepted auditing standards?

The reason for adopting the CASs is to

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

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

CAS 200 explains that as part of general qualifications and conduct, the auditor should exercise due care in the performance of all aspects of auditing. Which of the following is an illustration of due care?

What are the staff levels and responsibilities at Public Accounting firms?

The codes of professional conduct of the various accounting bodies are meant to

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

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

CPAB's purpose is to

There are many elements of quality control at the firm level. Which element does the statement "quality control procedures should be developed, documented, implemented, and communicated" fall under?

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

National accounting firms in 2013 were those with

The most common organizational form used by public accounting firms is

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

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?

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 first step in the financial statement audit using a risk assessment approach is to

The Canada Business Corporation Act gave authority to Canadian accounting and auditing standard-setters by stating that financial statements

The most authoritative requirements for public accountants performing financial statement audits in Canada are the

There are many elements of quality control at the firm level. Which element does "adequate hiring policies (and documentation of their implementation) that ensure competence and integrity of personnel" relate to?

Communicating the findings of the audit in accordance with CASs is a requirement of which category of generally accepted auditing standards?

The reason for adopting the CASs is to

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

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

CAS 200 explains that as part of general qualifications and conduct, the auditor should exercise due care in the performance of all aspects of auditing. Which of the following is an illustration of due care?

What are the staff levels and responsibilities at Public Accounting firms?

The codes of professional conduct of the various accounting bodies are meant to

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

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

CPAB's purpose is to

There are many elements of quality control at the firm level. Which element does the statement "quality control procedures should be developed, documented, implemented, and communicated" fall under?

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