Question 1

The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as:

Accepted Answer

A)  Due care. 
B)  Independence in appearance. 
C)  Professional judgment. 
D)  Professional skepticism. 
A)  Due care. 
B)  Independence in appearance. 
C)  Professional judgment. 
D)  Professional skepticism.

Question 2

Auditors cannot effectively satisfy the responsibilities principle requiring due care if they have not also satisfied the performance principle.

Accepted Answer

A) True 
 B)False

Question 3

Under generally accepted auditing standards,which of the following relates to the responsibilities principle?

Accepted Answer

A)  The initial planning of the audit engagement. 
B)  The confirmation of accounts receivable. 
C)  The completion of an internal control questionnaire. 
D)  Maintaining professional skepticism and exercising professional judgment. 
A)  The initial planning of the audit engagement. 
B)  The confirmation of accounts receivable. 
C)  The completion of an internal control questionnaire. 
D)  Maintaining professional skepticism and exercising professional judgment.

Question 4

Internal evidence

Accepted Answer

A)  Is obtained directly from third parties independent of the client. 
B)  Originates outside the client's system but has been received and processed by the client. 
C)  Consists of documents that are produced, used, and stored within the client's information system. 
D)  Consists of representations made by the client's officers, directors, owners, and employees. 
A)  Is obtained directly from third parties independent of the client. 
B)  Originates outside the client's system but has been received and processed by the client. 
C)  Consists of documents that are produced, used, and stored within the client's information system. 
D)  Consists of representations made by the client's officers, directors, owners, and employees.

Question 5

Breaux & Co.,CPAs require that all audit documentation indicate the identity of the preparer and the reviewer.This procedure provides evidence relating to which of the following?

Accepted Answer

A)  Independence. 
B)  Adequate competence and capabilities. 
C)  Adequate planning and supervision. 
D)  Gathering sufficient appropriate evidence. 
A)  Independence. 
B)  Adequate competence and capabilities. 
C)  Adequate planning and supervision. 
D)  Gathering sufficient appropriate evidence.

Question 6

The performance principle would include all of the following except

Accepted Answer

A)  The auditors' determination of materiality levels. 
B)  The auditors' evaluation of independence with respect to their clients. 
C)  The auditors' evaluation of the risk of material misstatement. 
D)  The auditors' determination of the nature, timing, and extent of substantive tests. 
A)  The auditors' determination of materiality levels. 
B)  The auditors' evaluation of independence with respect to their clients. 
C)  The auditors' evaluation of the risk of material misstatement. 
D)  The auditors' determination of the nature, timing, and extent of substantive tests.

Question 7

(Appendix)Which of the following is not an attestation standard?

Accepted Answer

A)  The practitioner must obtain sufficient evidence to provide a reasonable basis for the conclusion expressed in the report. 
B)  The practitioner must identify the subject matter or the assertion being reported on and state the character of the engagement. 
C)  The practitioner must adequately plan the work and must properly supervise any assistants. 
D)  A sufficient understanding of the client's internal controls shall be obtained to plan the engagement. 
A)  The practitioner must obtain sufficient evidence to provide a reasonable basis for the conclusion expressed in the report. 
B)  The practitioner must identify the subject matter or the assertion being reported on and state the character of the engagement. 
C)  The practitioner must adequately plan the work and must properly supervise any assistants. 
D)  A sufficient understanding of the client's internal controls shall be obtained to plan the engagement.

Question 8

Which of the following represent(s)audit quality guides that remain stable over time and are applicable for all audits?

Accepted Answer

A)  Auditing procedures. 
B)  Auditing standards. 
C)  Due care. 
D)  System of quality control. 
A)  Auditing procedures. 
B)  Auditing standards. 
C)  Due care. 
D)  System of quality control.

Question 9

Which of the following principles is most closely associated with the auditors' conclusion as to the fair presentation of the entity's financial statements?

Accepted Answer

A)  Communication principle. 
B)  Performance principle. 
C)  Reporting principle. 
D)  Responsibilities principle. 
A)  Communication principle. 
B)  Performance principle. 
C)  Reporting principle. 
D)  Responsibilities principle.

Question 10

________________________________ is a state of mind that is characterized by appropriate questioning and a critical assessment of audit evidence.

Accepted Answer

Profession

Question 11

The risk of ___________________________ is a combination of the probability that a material misstatement will occur and not be detected by the entity's internal controls.

Accepted Answer

material m

Question 12

Which of the following recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements?

Accepted Answer

A)  Absolute assurance. 
B)  Professional judgment. 
C)  Persuasiveness of audit evidence. 
D)  Reasonable assurance. 
A)  Absolute assurance. 
B)  Professional judgment. 
C)  Persuasiveness of audit evidence. 
D)  Reasonable assurance.

Question 13

Which of the following concepts is least related to the standard of due care?

Accepted Answer

A)  Independence in fact. 
B)  Professional skepticism. 
C)  Prudent auditor. 
D)  Reasonable assurance. 
A)  Independence in fact. 
B)  Professional skepticism. 
C)  Prudent auditor. 
D)  Reasonable assurance.

Question 14

The most persuasive evidence regarding the existence of newly acquired computer equipment is

Accepted Answer

A)  Inquiry of management. 
B)  Documentation prepared externally. 
C)  Observation of auditee's procedures. 
D)  Physical observation. 
A)  Inquiry of management. 
B)  Documentation prepared externally. 
C)  Observation of auditee's procedures. 
D)  Physical observation.

Question 15

The standard auditors' report refers to standards of the PCAOB and GAAP in which paragraph?

Accepted Answer

A)  Standards of the PCAOB: Scope only; GAAP: Opinion only 
B)  Standards of the PCAOB: Introductory only; GAAP: Scope and opinion 
C)  Standards of the PCAOB: Introductory and scope; GAAP: Opinion only 
D)  Standards of the PCAOB: Introductory only; GAAP: All paragraphs 
A)  Standards of the PCAOB: Scope only; GAAP: Opinion only 
B)  Standards of the PCAOB: Introductory only; GAAP: Scope and opinion 
C)  Standards of the PCAOB: Introductory and scope; GAAP: Opinion only 
D)  Standards of the PCAOB: Introductory only; GAAP: All paragraphs

Question 16

When financial statements do not present fairly the financial condition,results of operations,and cash flows of an entity,an auditor would mostly likely issue a(n):

Accepted Answer

A)  Adverse opinion. 
B)  Disclaimer of opinion. 
C)  Qualified opinion. 
D)  Unqualified opinion. 
A)  Adverse opinion. 
B)  Disclaimer of opinion. 
C)  Qualified opinion. 
D)  Unqualified opinion.

Question 17

Auditing Standards issued by the PCAOB are the sole source of guidance for audits of public entities.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true with respect to the persuasiveness of audit evidence?

Accepted Answer

A)  Persuasiveness is related to the relevance of evidence but not the reliability of evidence. 
B)  Evidence is considered more persuasive when gathered prior to year-end than following year-end. 
C)  Evidence obtained under environments of stronger internal control is more persuasive than evidence obtained under environments of weaker internal control. 
D)  In evaluating persuasiveness, sufficiency of evidence is of more importance than appropriateness of evidence. 
A)  Persuasiveness is related to the relevance of evidence but not the reliability of evidence. 
B)  Evidence is considered more persuasive when gathered prior to year-end than following year-end. 
C)  Evidence obtained under environments of stronger internal control is more persuasive than evidence obtained under environments of weaker internal control. 
D)  In evaluating persuasiveness, sufficiency of evidence is of more importance than appropriateness of evidence.

Question 19

The concept of _________________________ recognizes that auditors should focus on matters that are important to financial statement users.

Accepted Answer

The answer of The concept of _________________________ recognizes that auditors...

Question 20

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

Accepted Answer

A)  Inquiries of the client's internal audit staff. 
B)  Inspection of prenumbered client purchase orders filed in the vouchers payable department. 
C)  Inspection of vendor sales invoices received from client personnel. 
D)  Inspection of bank statements obtained directly from the client's financial institution. 
A)  Inquiries of the client's internal audit staff. 
B)  Inspection of prenumbered client purchase orders filed in the vouchers payable department. 
C)  Inspection of vendor sales invoices received from client personnel. 
D)  Inspection of bank statements obtained directly from the client's financial institution.

The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as:

Auditors cannot effectively satisfy the responsibilities principle requiring due care if they have not also satisfied the performance principle.

Under generally accepted auditing standards,which of the following relates to the responsibilities principle?

Internal evidence

Breaux & Co.,CPAs require that all audit documentation indicate the identity of the preparer and the reviewer.This procedure provides evidence relating to which of the following?

The performance principle would include all of the following except

(Appendix)Which of the following is not an attestation standard?

Which of the following represent(s)audit quality guides that remain stable over time and are applicable for all audits?

Which of the following principles is most closely associated with the auditors' conclusion as to the fair presentation of the entity's financial statements?

________________________________ is a state of mind that is characterized by appropriate questioning and a critical assessment of audit evidence.

The risk of ___________________________ is a combination of the probability that a material misstatement will occur and not be detected by the entity's internal controls.

Which of the following recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements?

Which of the following concepts is least related to the standard of due care?

The most persuasive evidence regarding the existence of newly acquired computer equipment is

The standard auditors' report refers to standards of the PCAOB and GAAP in which paragraph?

When financial statements do not present fairly the financial condition,results of operations,and cash flows of an entity,an auditor would mostly likely issue a(n):

Auditing Standards issued by the PCAOB are the sole source of guidance for audits of public entities.

Which of the following statements is true with respect to the persuasiveness of audit evidence?

The concept of _________________________ recognizes that auditors should focus on matters that are important to financial statement users.

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

Auditing and Assurance Services

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 2: Professional Standards

The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as:

Auditors cannot effectively satisfy the responsibilities principle requiring due care if they have not also satisfied the performance principle.

Under generally accepted auditing standards,which of the following relates to the responsibilities principle?

Internal evidence

Breaux & Co.,CPAs require that all audit documentation indicate the identity of the preparer and the reviewer.This procedure provides evidence relating to which of the following?

The performance principle would include all of the following except

(Appendix)Which of the following is not an attestation standard?

Which of the following represent(s)audit quality guides that remain stable over time and are applicable for all audits?

Which of the following principles is most closely associated with the auditors' conclusion as to the fair presentation of the entity's financial statements?

________________________________ is a state of mind that is characterized by appropriate questioning and a critical assessment of audit evidence.

The risk of ___________________________ is a combination of the probability that a material misstatement will occur and not be detected by the entity's internal controls.

Which of the following recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements?

Which of the following concepts is least related to the standard of due care?

The most persuasive evidence regarding the existence of newly acquired computer equipment is

The standard auditors' report refers to standards of the PCAOB and GAAP in which paragraph?

When financial statements do not present fairly the financial condition,results of operations,and cash flows of an entity,an auditor would mostly likely issue a(n):

Auditing Standards issued by the PCAOB are the sole source of guidance for audits of public entities.

Which of the following statements is true with respect to the persuasiveness of audit evidence?

The concept of _________________________ recognizes that auditors should focus on matters that are important to financial statement users.

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

Auditing and Assurance Services

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters