Exam 2: Auditors Professional Roles and Responsibilities

The fourth reporting standard requires the audit report to comment on the consistency of the accounting principles used in preparing the financial statements.

Auditors try to achieve independence in appearance in order to ________.

According to generally accepted auditing standards (GAAS), the overall objective of a financial statement audit is ________.

Key features of SOX include all of the following except ________.

Which of the following has been established to oversee the auditors of public companies?

In establishing a quality control system, which area should be of a secondary nature?

Audit risk is the risk that an auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.

The general standard of GAAS relates primarily to the personal integrity and professional qualifications of auditors.

Practice inspection is something a new auditor does as part of his or her training program.

Which of the following is the first task that the auditor must accomplish to demonstrate proficiency in auditing?

Audit committees monitor management's financial reporting responsibilities.

The primary purpose of obtaining an understanding of the company's internal controls in the financial statement audit is ________.

According to IFAC, which of the following is not one of the elements of quality control?

The assessment of materiality has a pervasive impact on the audit.

Williams & Co., a large international CPA firm, will be subject to an external peer review. The peer review will most likely be performed by ________.

Control risk is ________.