Exam 2: Professional Standards

Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client.The primary purpose for establishing such policies and procedures is:

An audit provides reasonable assurance of detecting which of the following types of material illegal acts? Direct Effect Without a Direct Effect A Yes Yes B. Yes No C. No Yes D. No No

To present fairly in conformity with generally accepted accounting principles,the financial statements must:

Which of the following is most likely to be included in a public company financial statement audit report?

A requirement that working papers be reviewed by the supervisor,and any deficiencies be discussed with the preparer is an example of a quality control procedure in the area of:

In pursuing a CPA firm's quality control objectives,a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients.Which quality control objective would this be most likely to satisfy?

By definition,proper professional skepticism on an audit requires: Questioning mind Bubjective assessnent of audit evdence A No No B. No Yes C. Yes No D. Yes Yes

An audit should be designed to obtain reasonable assurance of detecting material misstatements due to:

Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report?

The Auditing Standards Board's guidance on matters such as the purpose of an audit,the premise of an audit,and auditor personal responsibilities is included in:

A requirement to design recruitment processes and procedures to help the firm select individuals meeting minimum academic requirements established by the firm is an example of a quality control procedure in the area of:

Ordinarily,a public company audit report must be addressed to: Board of Directors Shareholders A Yes Yes B. Yes No C. No Yes D. No No

The body that issues international pronouncements providing auditing procedural and reporting guidance is the:

The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the:

Indicate whether you agree or disagree with the following statements concerning a financial statement audit conducted in accordance with generally accepted auditing standards.

Within the context of quality control,the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide personnel within the firm with:

Which of the following is explicitly included as a part of the description of management's responsibility in a nonpublic company unmodified audit report?

Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards?

An attitude that includes a questioning mind,being alert to conditions that may indicate possible misstatements,and a critical assessment of audit evidence is referred to as: