Exam 2: Professional Standards

A public company's audit report must be addressed to the board of directors and the

Which of the following is accurate,as indicated in the principles underlying an audit?

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: Fraudulent Finaricial Reporting Misappropriation of Assets A Yes Yes B. Yes No C. No Yes D. No No

The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the:

Authoritative GAAP Sources include: FASB FASB Remediation Statements Codification A Yes Yes B. Yes No C. No Yes D. No No

An engagement review form of peer review is least likely to include a peer reviewer's detailed analysis of:

An unconditional responsibility to follow an AICPA professional standard exists when the professional standard uses the term(s):  Must Should A. Yes Yes B. Yes No C. No Yes D. No No

An investor reading the financial statements of The Fairbury Corporation observes that the statements are accompanied by an unmodified auditors' report.From this,the investor may conclude that:

A peer review is generally performed by employees of the AICPA.

The auditors' report for a nonpublic company should indicate:

Which of the following is not an element of quality control?

Which of the following best describes what is meant by generally accepted auditing standards?

When a Statement on Auditing Standards uses the word "should" relating to a requirement,it means that the auditor:

Which of the following best describes a portion of the auditors' responsibility regarding noncompliance with laws by clients?

An audit should be designed to obtain reasonable assurance of detecting non-compliance with all laws.

Which of the following types of audits are ordinarily performed following generally accepted auditing standards? Public Company Audit Norpublic Comparty Audit A Yes Yes B. Yes No C. No Yes D. No No

Which of the following is not included in the auditors' standard unmodified audit report for a nonpublic company?

For a public company audit,the auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.

Which of the following is not an underlying premise of an audit?

An audit opinion that states that the financial statements are not fairly presented is referred to as a(n)