Question 1

An external auditor is conducting an audit of the financial statements of Camden Corporation.The external auditor is expected to ________.

Accepted Answer

A) certify the correctness of Camden's financial statements 
B) make a 100% examination of Camden's records 
C) give an opinion on whether Camden's financial statements are fairly presented in all material respects 
D) give an opinion on the attractiveness of Camden for investment purposes and critique the wisdom and legality of its business decisions 
A) certify the correctness of Camden's financial statements 
B) make a 100% examination of Camden's records 
C) give an opinion on whether Camden's financial statements are fairly presented in all material respects 
D) give an opinion on the attractiveness of Camden for investment purposes and critique the wisdom and legality of its business decisions

Question 2

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

Accepted Answer

A) Canadian Coalition for Good Governance. 
B) Canadian Public Accountability Board. 
C) The SOX Board. 
D) The Canadian Securities Commission. 
A) Canadian Coalition for Good Governance. 
B) Canadian Public Accountability Board. 
C) The SOX Board. 
D) The Canadian Securities Commission.

Question 3

Because of the risk of material misstatement,an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of ________.

Accepted Answer

A) objective judgment 
B) independent integrity 
C) professional skepticism 
D) impartial conservatism 
A) objective judgment 
B) independent integrity 
C) professional skepticism 
D) impartial conservatism

Question 4

What is a quality inspection?

Accepted Answer

A quality inspection is an examination a

Question 5

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

Accepted Answer

A) Identify the evidence relevant for the audit of assertions that are made by management in its unaudited financial statements and notes. 
B) Design an audit program to obtain sufficient appropriate evidence about assertions management makes in financial statements and notes. 
C) Recognize the underlying assertions made by management in the financial statements and notes. 
D) Evaluate the evidence gathered in the performance of the audit program and decide whether management's assertions conform to generally accepted accounting principles and reality. 
A) Identify the evidence relevant for the audit of assertions that are made by management in its unaudited financial statements and notes. 
B) Design an audit program to obtain sufficient appropriate evidence about assertions management makes in financial statements and notes. 
C) Recognize the underlying assertions made by management in the financial statements and notes. 
D) Evaluate the evidence gathered in the performance of the audit program and decide whether management's assertions conform to generally accepted accounting principles and reality.

Question 6

What is the difference between audit procedures and audit standards?

Accepted Answer

Audit standards are audit-quality recomm

Question 7

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

Accepted Answer

A) Creating an independence and objectivity checklist. 
B) Creating a program for continuing professional education. 
C) Creating an internal review process. 
D) Controlling access to client files. 
A) Creating an independence and objectivity checklist. 
B) Creating a program for continuing professional education. 
C) Creating an internal review process. 
D) Controlling access to client files.

Question 8

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

Accepted Answer

A) increased penalties for corporate wrongdoers 
B) more timely and extensive financial disclosures 
C) fewer options of recourse for aggrieved shareholders 
D) increased oversight of auditors 
A) increased penalties for corporate wrongdoers 
B) more timely and extensive financial disclosures 
C) fewer options of recourse for aggrieved shareholders 
D) increased oversight of auditors

Question 9

Control risk is the risk that an accounting firm's quality control standards will not be adequate.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) employees and partners of Williams & Co.who are not associated with the particular audits being reviewed 
B) employees and partners of another CA firm 
C) peer review staff of the Ontario Securities Commission 
D) peer review staff of the CICA 
A) employees and partners of Williams & Co.who are not associated with the particular audits being reviewed 
B) employees and partners of another CA firm 
C) peer review staff of the Ontario Securities Commission 
D) peer review staff of the CICA

Question 11

Control risk is ________.

Accepted Answer

A) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures 
B) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures 
C) the risk that the auditor will not be able to complete the audit on a timely basis 
D) the risk that the auditor will not properly control the staff on the audit engagement 
A) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures 
B) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures 
C) the risk that the auditor will not be able to complete the audit on a timely basis 
D) the risk that the auditor will not properly control the staff on the audit engagement

Question 12

The GAAS general standard relating to the audit of financial statements focuses on all of the following except ________.

Accepted Answer

A) competence 
B) independence 
C) due professional care 
D) planning 
A) competence 
B) independence 
C) due professional care 
D) planning

Question 13

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

Accepted Answer

A) to help the auditors develop the audit program 
B) to make suggestions to management to improve internal controls 
C) to obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements 
D) to determine whether the company has changed any accounting principles 
A) to help the auditors develop the audit program 
B) to make suggestions to management to improve internal controls 
C) to obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements 
D) to determine whether the company has changed any accounting principles

Question 14

Which of the following statements best explains an unmodified report opinion?

Accepted Answer

A) The financial statements contain a departure from GAAP. 
B) The auditor was unable to complete the work necessary to form a complete opinion. 
C) The auditor was not aware of any reasons not to believe the statements are correct. 
D) Based on the evidence obtained,the auditor believes the statements are free of material error. 
A) The financial statements contain a departure from GAAP. 
B) The auditor was unable to complete the work necessary to form a complete opinion. 
C) The auditor was not aware of any reasons not to believe the statements are correct. 
D) Based on the evidence obtained,the auditor believes the statements are free of material error.

Question 15

A standard unmodified audit report should be dated ________.

Accepted Answer

A) no later than the date when the auditor obtained sufficient appropriate audit evidence supporting the auditor's opinion 
B) no earlier than the date when the auditor obtained sufficient appropriate audit evidence supporting the auditor's opinion 
C) as at the end of the year being reported on 
D) as at the end of the year the audit work was done 
A) no later than the date when the auditor obtained sufficient appropriate audit evidence supporting the auditor's opinion 
B) no earlier than the date when the auditor obtained sufficient appropriate audit evidence supporting the auditor's opinion 
C) as at the end of the year being reported on 
D) as at the end of the year the audit work was done

An external auditor is conducting an audit of the financial statements of Camden Corporation.The external auditor is expected to ________.

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

Because of the risk of material misstatement,an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of ________.

What is a quality inspection?

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

What is the difference between audit procedures and audit standards?

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

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

Control risk is the risk that an accounting firm's quality control standards will not be adequate.

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

Control risk is ________.

The GAAS general standard relating to the audit of financial statements focuses on all of the following except ________.

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

Which of the following statements best explains an unmodified report opinion?

A standard unmodified audit report should be dated ________.

Introduction to Auditing

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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters

Exam 2: Auditors Professional Roles and Responsibilities

An external auditor is conducting an audit of the financial statements of Camden Corporation.The external auditor is expected to ________.

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

Because of the risk of material misstatement,an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of ________.

What is a quality inspection?

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

What is the difference between audit procedures and audit standards?

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

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

Control risk is the risk that an accounting firm's quality control standards will not be adequate.

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

Control risk is ________.

The GAAS general standard relating to the audit of financial statements focuses on all of the following except ________.

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

Which of the following statements best explains an unmodified report opinion?

A standard unmodified audit report should be dated ________.

Introduction to Auditing

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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters