Exam 2: Professional Standards

The auditors' report should either contain an expression of opinion on the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed.

Using I (introductory),S (scope),O (opinion),A (additional),or N (none),indicate the paragraph in which the following statements or topics would be included in the auditors' report. ____ 1.The titles of the financial statements examined by the auditors. ____ 2.A description of any scope limitation(s)encountered during the audit. ____ 3.A statement that auditors were independent with respect to the entity. ____ 4.The auditors' conclusion with respect to the fairness of the entity's financial statements. ____ 5.A statement that an audit was conducted in accordance with standards of the PCAOB. ____ 6.A statement that the entity's management is responsible for the fairness of the financial statements. ____ 7.A description of an audit,which includes examining evidence in support of the financial statements. ____ 8.Reference to generally accepted accounting principles. ____ 9.A description of any specific departures from GAAP noted during the audit that were material. ____ 10.A statement that the financial statements were consistently prepared compared to those of prior period(s).

To be considered material,an item must be one that would influence the decision of financial statement users.

(Appendix)The attestation standards do not contain a requirement that auditors obtain

In the United States,the auditors' report must state whether the financial statements are presented in accordance with ___________________________________.

One of an accounting firm's basic objectives is to provide professional services that conform to professional standards.Reasonable assurance of achieving this objective can be obtained by following

Which of the following topics is not addressed in the auditors' report for a public entity?

Which of the following best demonstrates the concept of professional skepticism?

Which of the following best describes the general contents of the introductory paragraph of the auditors' report?

Auditors try to achieve independence in appearance in order to:

The auditors' responsibility to express an opinion on the financial statements is

(Appendix)The AICPA attestation standards differ from the responsibilities principle,performance principle,and reporting principle in that:

Generally accepted auditing standards must be followed on all audit engagements.

Which of the following procedures would provide the most reliable audit evidence?

The primary purpose of the auditors' study of internal control for a nonpublic entity is:

A periodic review of an audit firm's system of quality control by the PCAOB is referred to as a(n):

Which reporting options do auditors have if the client's financial statements are not presented according to the applicable financial framework (e.g.,GAAP,IFRS)?

Auditing procedures are the same as auditing standards.

(Appendix)The attestation standards are a general set of standards intended to guide work in

The ______________________ principle of GAAS highlights the importance of complying with ethical requirements,including those pertaining to independence and due care of auditors.