Question 1

Which of the following best describes the concept of risk assessment on which auditors can provide independent assurance?

Accepted Answer

A) The risk that financial statements are misstated because of fraud. 
B) The risk that financial statements are misstated because of error or fraud. 
C) Whether management has systems in place to evaluate and effectively manage the entity's business risks. 
D) Developing client acceptance and continuance practices that minimize the likelihood of lawsuits against the auditor. 
A) The risk that financial statements are misstated because of fraud. 
B) The risk that financial statements are misstated because of error or fraud. 
C) Whether management has systems in place to evaluate and effectively manage the entity's business risks. 
D) Developing client acceptance and continuance practices that minimize the likelihood of lawsuits against the auditor.

Question 2

The ASB's auditing standards contain a preface that includes Principles Underlying an Audit Conducted in Accordance with GAAS.

Accepted Answer

A) True 
 B)False

Question 3

The audit committee generally includes senior executives of the organization.

Accepted Answer

A) True 
 B)False

Question 4

The Performance section of Principles Underlying an Audit Conducted in Accordance with GAAS states that the auditor is unable to obtain absolute assurance that the financials are free of material misstatements because of inherent limitations which arise from all of the following except:

Accepted Answer

A) the presentation of the financial statements based on GAAS. 
B) the nature of financial reporting. 
C) the nature of audit procedures. 
D) the need for the audit to be conducted within a reasonable period of time and so as to achieve a balance between benefit and cost. 
A) the presentation of the financial statements based on GAAS. 
B) the nature of financial reporting. 
C) the nature of audit procedures. 
D) the need for the audit to be conducted within a reasonable period of time and so as to achieve a balance between benefit and cost.

Question 5

The authoritative body designed to promulgate standards concerning a CPA's association with audited financial statements of an entity that is required to file financial statements with the SEC is the:

Accepted Answer

A) financial accounting standards board. 
B) general accounting office. 
C) public company accounting oversight board. 
D) auditing standards board. 
A) financial accounting standards board. 
B) general accounting office. 
C) public company accounting oversight board. 
D) auditing standards board.

Which of the following best describes the concept of risk assessment on which auditors can provide independent assurance?

The ASB's auditing standards contain a preface that includes Principles Underlying an Audit Conducted in Accordance with GAAS.

The audit committee generally includes senior executives of the organization.

The Performance section of Principles Underlying an Audit Conducted in Accordance with GAAS states that the auditor is unable to obtain absolute assurance that the financials are free of material misstatements because of inherent limitations which arise from all of the following except:

The authoritative body designed to promulgate standards concerning a CPA's association with audited financial statements of an entity that is required to file financial statements with the SEC is the:

An Introduction to Assurance and Financial Statement Auditing

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters

Exam 2: The Financial Statement Auditing Environment

Which of the following best describes the concept of risk assessment on which auditors can provide independent assurance?

The ASB's auditing standards contain a preface that includes Principles Underlying an Audit Conducted in Accordance with GAAS.

The audit committee generally includes senior executives of the organization.

The Performance section of Principles Underlying an Audit Conducted in Accordance with GAAS states that the auditor is unable to obtain absolute assurance that the financials are free of material misstatements because of inherent limitations which arise from all of the following except:

The authoritative body designed to promulgate standards concerning a CPA's association with audited financial statements of an entity that is required to file financial statements with the SEC is the:

An Introduction to Assurance and Financial Statement Auditing

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters