Question 1

In a(n) ________ engagement, the practitioner offers a conclusion on the accountable party's written assertion.

Accepted Answer

A)  attest 
B)  direct reporting 
C)  forensic 
D)  compilation 
A)  attest 
B)  direct reporting 
C)  forensic 
D)  compilation

Question 2

What must prospective financial statements contain?

Accepted Answer

Prospective financial statements must co

Question 3

Comparing the data on a fraud suspect's spending with known income is an extended procedure known as ________.

Accepted Answer

A)  horizontal analysis 
B)  vertical analysis 
C)  expenditure analysis 
D)  surveillance 
A)  horizontal analysis 
B)  vertical analysis 
C)  expenditure analysis 
D)  surveillance

Question 4

What is Management's Discussion and Analysis?

Accepted Answer

Management Discussion and Analysis or MD

Question 5

The objective of internal auditing is service to ________.

Accepted Answer

A)  management 
B)  a specific department 
C)  the organization 
D)  the audit committee 
A)  management 
B)  a specific department 
C)  the organization 
D)  the audit committee

Question 6

In a direct reporting engagement, the assertions ________.

Accepted Answer

A)  must be in written form 
B)  are expressed verbally 
C)  may only be implied 
D)  can be in written form or expressed verbally 
A)  must be in written form 
B)  are expressed verbally 
C)  may only be implied 
D)  can be in written form or expressed verbally

Question 7

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

Accepted Answer

A)  when there are many fraud risk factors 
B)  when the audit committee authorizes further investigation 
C)  it makes the client aware of how seriously the auditor takes its fraud detection responsibility 
D)  it improves the documentation standards of the financial statement audit 
A)  when there are many fraud risk factors 
B)  when the audit committee authorizes further investigation 
C)  it makes the client aware of how seriously the auditor takes its fraud detection responsibility 
D)  it improves the documentation standards of the financial statement audit

Question 8

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practising in Canada should ________.

Accepted Answer

A)  understand the accounting principles that are generally accepted in the other country 
B)  be certified by the appropriate auditing or accountancy board of the other country 
C)  notify management that the auditor is required to deny an opinion on the financial statements 
D)  recast the financial statements according to Canadian GAAP 
A)  understand the accounting principles that are generally accepted in the other country 
B)  be certified by the appropriate auditing or accountancy board of the other country 
C)  notify management that the auditor is required to deny an opinion on the financial statements 
D)  recast the financial statements according to Canadian GAAP

Question 9

In value-for-money (VFM) audits, the focus is on the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Since the Management Discussion & Analysis report is not part of the financial statements, the auditor bears no responsibility for it.

Accepted Answer

A) True 
 B)False

Question 11

Federal and provincial governments and their agencies and local governments use the CPA Canada Public Sector Standards to guide their audits.

Accepted Answer

A) True 
 B)False

Question 12

The most common reporting framework in Canada is the ________.

Accepted Answer

A)  compliance framework 
B)  special purpose framework 
C)  prospective framework 
D)  fair presentation framework 
A)  compliance framework 
B)  special purpose framework 
C)  prospective framework 
D)  fair presentation framework

Question 13

An environmental audit focuses on compliance with legislation rather than the effect of compliance on the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

A CPA's audit client is a small charity which funds development projects in a small foreign country. Most of its donations come in the form of cash, with tax receipts issued to the donors. Included in the cash receipts are weekly donations by one person, Mr. X, whose last name is easily identifiable as coming from that foreign country. Some of these cash donations exceed $10,000. The CPA once asked about Mr. X and accepted as an answer that Mr. X was a wealthy entrepreneur but the CPA has done no other work. Which of the following statements is TRUE?

Accepted Answer

A)  Assuming the CPA has performed all other necessary and appropriate procedures, he may provide a clean opinion. 
B)  Assuming the CPA does no further investigation of this matter, the CPA may be considered willfully blind and complicit in an illegal act. 
C)  The CPA may be associated with misleading information and should withdraw from the audit. 
D)  The CPA should try to count the cash as it comes in order to avoid issuing a scope limitation report. 
A)  Assuming the CPA has performed all other necessary and appropriate procedures, he may provide a clean opinion. 
B)  Assuming the CPA does no further investigation of this matter, the CPA may be considered willfully blind and complicit in an illegal act. 
C)  The CPA may be associated with misleading information and should withdraw from the audit. 
D)  The CPA should try to count the cash as it comes in order to avoid issuing a scope limitation report.

Question 15

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements regarding agreed-upon procedures is FALSE?

Accepted Answer

A)  They amount to an audit. 
B)  They do not meet with generally accepted auditing standards. 
C)  They have a limited scope. 
D)  They are typically initiated by the client. 
A)  They amount to an audit. 
B)  They do not meet with generally accepted auditing standards. 
C)  They have a limited scope. 
D)  They are typically initiated by the client.

Question 17

A value-for-money (VFM) audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

Accepted Answer

A) True 
 B)False

Question 18

What does "willfully blind" mean within the context of fraud?

Accepted Answer

Accountants need to be careful not to be

Question 19

A financial ________ depends on one or more hypothetical assumptions.

Accepted Answer

A)  statement 
B)  projection 
C)  plan 
D)  forecast 
A)  statement 
B)  projection 
C)  plan 
D)  forecast

Question 20

The term significance as used in the assurance standards refers to ________.

Accepted Answer

A)  the concept of materiality extended to nonfinancial factors 
B)  an amount greater than materiality for audit purposes 
C)  an estimate of risk in an assurance engagement 
D)  the importance of a criterion for evaluation of information 
A)  the concept of materiality extended to nonfinancial factors 
B)  an amount greater than materiality for audit purposes 
C)  an estimate of risk in an assurance engagement 
D)  the importance of a criterion for evaluation of information

In a(n) ________ engagement, the practitioner offers a conclusion on the accountable party's written assertion.

What must prospective financial statements contain?

Comparing the data on a fraud suspect's spending with known income is an extended procedure known as ________.

What is Management's Discussion and Analysis?

The objective of internal auditing is service to ________.

In a direct reporting engagement, the assertions ________.

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practising in Canada should ________.

In value-for-money (VFM) audits, the focus is on the financial statements.

Since the Management Discussion & Analysis report is not part of the financial statements, the auditor bears no responsibility for it.

Federal and provincial governments and their agencies and local governments use the CPA Canada Public Sector Standards to guide their audits.

The most common reporting framework in Canada is the ________.

An environmental audit focuses on compliance with legislation rather than the effect of compliance on the financial statements.

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

Which of the following statements regarding agreed-upon procedures is FALSE?

A value-for-money (VFM) audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

What does "willfully blind" mean within the context of fraud?

A financial ________ depends on one or more hypothetical assumptions.

The term significance as used in the assurance standards refers to ________.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Filters

Exam 21: Other Professional Accounting Services and Reports, Including Fraud

In a(n) ________ engagement, the practitioner offers a conclusion on the accountable party's written assertion.

What must prospective financial statements contain?

Comparing the data on a fraud suspect's spending with known income is an extended procedure known as ________.

What is Management's Discussion and Analysis?

The objective of internal auditing is service to ________.

In a direct reporting engagement, the assertions ________.

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country, an auditor practising in Canada should ________.

In value-for-money (VFM) audits, the focus is on the financial statements.

Since the Management Discussion & Analysis report is not part of the financial statements, the auditor bears no responsibility for it.

Federal and provincial governments and their agencies and local governments use the CPA Canada Public Sector Standards to guide their audits.

The most common reporting framework in Canada is the ________.

An environmental audit focuses on compliance with legislation rather than the effect of compliance on the financial statements.

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

Which of the following statements regarding agreed-upon procedures is FALSE?

A value-for-money (VFM) audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

What does "willfully blind" mean within the context of fraud?

A financial ________ depends on one or more hypothetical assumptions.

The term significance as used in the assurance standards refers to ________.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Filters