Question 1

The order of presentation of sections in a public company financial statement audit report is:

Accepted Answer

A) Basis for Opinion,Critical Audit Matters,Opinion. 
B) Basis for Opinion,Opinion,Critical Audit Matters. 
C) Critical Audit Matters,Basis for Opinion,Opinion. 
D) Opinion,Basis for Opinion,Critical Audit Matters. 
A) Basis for Opinion,Critical Audit Matters,Opinion. 
B) Basis for Opinion,Opinion,Critical Audit Matters. 
C) Critical Audit Matters,Basis for Opinion,Opinion. 
D) Opinion,Basis for Opinion,Critical Audit Matters.

Question 2

Auditors must consider the possibility of fraud by employees or management on every audit engagement.They must also consider the possibility that the client has not complied with laws.
(a)Distinguish between employee and management fraud.
(b)Describe the auditors' responsibility for the detection of fraud in an audit.
(c)Describe the auditors' responsibility regarding noncompliance with laws by a client.

Accepted Answer

(a)Employee fraud is dishonest actions b

Question 3

The public company audit report is most likely to have a section with the title of:

Accepted Answer

A) Critical Audit Matters. 
B) Management Responsibilities. 
C) Shareholder Responsibilities. 
D) Type of Conclusion. 
A) Critical Audit Matters. 
B) Management Responsibilities. 
C) Shareholder Responsibilities. 
D) Type of Conclusion.

Question 4

A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element?

Accepted Answer

A) Engagement performance. 
B) Human resources. 
C) Leadership responsibilities for quality with the firm. 
D) Monitoring. 
A) Engagement performance. 
B) Human resources. 
C) Leadership responsibilities for quality with the firm. 
D) Monitoring.

Question 5

Which of the following is one of the elements of AICPA quality control?

Accepted Answer

A) Assurance of proper levels of association. 
B) Due professional care. 
C) Human Resources. 
D) Supervision. 
A) Assurance of proper levels of association. 
B) Due professional care. 
C) Human Resources. 
D) Supervision.

Question 6

Which of the following is not a service included in the attestation subject matter standard?

Accepted Answer

A) Compliance attestation. 
B) Financial forecasts and projections. 
C) Historical financial statement examination. 
D) Service organization controls. 
A) Compliance attestation. 
B) Financial forecasts and projections. 
C) Historical financial statement examination. 
D) Service organization controls.

Question 7

A nonpublic company auditors' report is most likely to be addressed to the company whose financial statements are being examined or to that company's:

Accepted Answer

A) Chief operating officer. 
B) President. 
C) Audit Committee. 
D) Chief financial officer. 
A) Chief operating officer. 
B) President. 
C) Audit Committee. 
D) Chief financial officer.

Question 8

Financial statements are prepared following a(an)

Accepted Answer

A) Applicable financial reporting framework. 
B) Appropriate subject matter. 
C) Generally accepted auditing standards. 
D) Set of quality control standards. 
A) Applicable financial reporting framework. 
B) Appropriate subject matter. 
C) Generally accepted auditing standards. 
D) Set of quality control standards.

Question 9

The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? $$\begin{array}{l}

\begin{array} { l cc } 
&\text { Attestation Stardards}&\text {  Independence Stardards }\
\text { A } & \text { Yes } & \text { Yes } \
B . & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No }
\end{array}
\end{array}$$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 10

To express an opinion on financial statements,the auditor obtains reasonable assurance about whether the financial statements as a whole are free from all misstatements,whether due to fraud or error.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Monitoring. 
B) Independence. 
C) Human resources. 
D) Engagement performance. 
A) Monitoring. 
B) Independence. 
C) Human resources. 
D) Engagement performance.

Question 12

Which of the following is least likely to be included as a titled section in a standard unqualified public company audit report?

Accepted Answer

A) Basis for opinion section. 
B) Critical audit matters section. 
C) Management responsibilities section. 
D) Opinion section. 
A) Basis for opinion section. 
B) Critical audit matters section. 
C) Management responsibilities section. 
D) Opinion section.

Question 13

If the auditors discover illegal acts by a client,they must immediately report the act to law enforcement.

Accepted Answer

A) True 
 B)False

Question 14

Primary responsibility for the financial statements lies with: $$\begin{array} { c c } 
&\text { Auditors } & \text { Maragement } \
A.&\text { Yes } & \text { Yes } \
B.&\text { Yes } & \text { No } \
C.&\text { No } & \text { Yes } \
D.&\text { No } & \text { No }
\end{array}$$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 15

A peer review in which the peer reviewers study and appraise a CPA firm's system of quality control to perform accounting and auditing work is referred to as a(n):

Accepted Answer

A) Engagement review. 
B) Inspection review. 
C) Supervision review. 
D) System review. 
A) Engagement review. 
B) Inspection review. 
C) Supervision review. 
D) System review.

Question 16

Which of the following is least likely to be directly examined in an inspection performed by the PCAOB?

Accepted Answer

A) Audit engagements. 
B) Review engagements. 
C) Compilation engagements. 
D) CPA firm quality control system. 
A) Audit engagements. 
B) Review engagements. 
C) Compilation engagements. 
D) CPA firm quality control system.

Question 17

A set of criteria used to determine measurement,recognition,representation,and disclosure of all material items appearing in the financial statements is referred to as a(n)

Accepted Answer

A) Financial reporting framework. 
B) Public Company Accounting Oversight Board Criteria. 
C) Quality control presentation standard. 
D) Special purpose audit standard. 
A) Financial reporting framework. 
B) Public Company Accounting Oversight Board Criteria. 
C) Quality control presentation standard. 
D) Special purpose audit standard.

Question 18

The AICPA Statements on Attestation Standards do not supersede the AICPA Statements on Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 19

The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members,even when financial statements are issued by a multinational company.

Accepted Answer

A) True 
 B)False

Question 20

Generally accepted auditing standards established by the AICPA through April of 2003:

Accepted Answer

A) Were accepted as interim standards by the Public Company Accounting Oversight Board. 
B) Provide accounting guidance for nonpublic companies. 
C) Were also adopted as international auditing standards at that date. 
D) Are now developed by the Securities and Exchange Commission. 
A) Were accepted as interim standards by the Public Company Accounting Oversight Board. 
B) Provide accounting guidance for nonpublic companies. 
C) Were also adopted as international auditing standards at that date. 
D) Are now developed by the Securities and Exchange Commission.

The order of presentation of sections in a public company financial statement audit report is:

The public company audit report is most likely to have a section with the title of:

A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element?

Which of the following is one of the elements of AICPA quality control?

Which of the following is not a service included in the attestation subject matter standard?

A nonpublic company auditors' report is most likely to be addressed to the company whose financial statements are being examined or to that company's:

Financial statements are prepared following a(an)

The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? Attestation Stardards Independence Stardards A Yes Yes B. Yes No C. No Yes D. No No

To express an opinion on financial statements,the auditor obtains reasonable assurance about whether the financial statements as a whole are free from all misstatements,whether due to fraud or error.

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

Which of the following is least likely to be included as a titled section in a standard unqualified public company audit report?

If the auditors discover illegal acts by a client,they must immediately report the act to law enforcement.

Primary responsibility for the financial statements lies with: Auditors Maragement A. Yes Yes B. Yes No C. No Yes D. No No

A peer review in which the peer reviewers study and appraise a CPA firm's system of quality control to perform accounting and auditing work is referred to as a(n):

Which of the following is least likely to be directly examined in an inspection performed by the PCAOB?

A set of criteria used to determine measurement,recognition,representation,and disclosure of all material items appearing in the financial statements is referred to as a(n)

The AICPA Statements on Attestation Standards do not supersede the AICPA Statements on Auditing Standards.

The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members,even when financial statements are issued by a multinational company.

Generally accepted auditing standards established by the AICPA through April of 2003:

The Role of the Public Accountant in the American Economy

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Accounts Receivable, notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property,plant,and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Reports

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, operational, and Compliance Auditing

Filters

Exam 2: Professional Standards

The order of presentation of sections in a public company financial statement audit report is:

The public company audit report is most likely to have a section with the title of:

A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element?

Which of the following is one of the elements of AICPA quality control?

Which of the following is not a service included in the attestation subject matter standard?

A nonpublic company auditors' report is most likely to be addressed to the company whose financial statements are being examined or to that company's:

Financial statements are prepared following a(an)

The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? Attestation Stardards Independence Stardards A Yes Yes B. Yes No C. No Yes D. No No

To express an opinion on financial statements,the auditor obtains reasonable assurance about whether the financial statements as a whole are free from all misstatements,whether due to fraud or error.

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

Which of the following is least likely to be included as a titled section in a standard unqualified public company audit report?

If the auditors discover illegal acts by a client,they must immediately report the act to law enforcement.

Primary responsibility for the financial statements lies with: Auditors Maragement A. Yes Yes B. Yes No C. No Yes D. No No

A peer review in which the peer reviewers study and appraise a CPA firm's system of quality control to perform accounting and auditing work is referred to as a(n):

Which of the following is least likely to be directly examined in an inspection performed by the PCAOB?

A set of criteria used to determine measurement,recognition,representation,and disclosure of all material items appearing in the financial statements is referred to as a(n)

The AICPA Statements on Attestation Standards do not supersede the AICPA Statements on Auditing Standards.

The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members,even when financial statements are issued by a multinational company.

Generally accepted auditing standards established by the AICPA through April of 2003:

The Role of the Public Accountant in the American Economy

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Accounts Receivable, notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property,plant,and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Reports

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, operational, and Compliance Auditing

Filters