Question 1

The Public Company Accounting Oversight Board:

Accepted Answer

A)  perform inspections of the quality controls at audit firms that audit public companies. 
B)  establish auditing standards that must be followed by CPAs on all audits. 
C)  oversee auditors of private companies. 
D)  perform any of the above functions. 
A)  perform inspections of the quality controls at audit firms that audit public companies. 
B)  establish auditing standards that must be followed by CPAs on all audits. 
C)  oversee auditors of private companies. 
D)  perform any of the above functions.

Question 2

Discuss the relationship between quality control and generally accepted auditing standards.

Accepted Answer

For a CPA firm, quality control encompas

Question 3

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true for audit firms who audit publically traded companies?

Accepted Answer

A)  They must undergo a PCAOB inspection on an annual basis if they audit more than 100 issuers 
B)  They must have an AICPA peer review on all audit clients. 
C)  They must have an AICPA peer review on all non-publically traded clients. 
D)  The audit firm can choose which CPA firm they wish to conduct their AICPA peer review. 
A)  They must undergo a PCAOB inspection on an annual basis if they audit more than 100 issuers 
B)  They must have an AICPA peer review on all audit clients. 
C)  They must have an AICPA peer review on all non-publically traded clients. 
D)  The audit firm can choose which CPA firm they wish to conduct their AICPA peer review.

Question 5

The Auditing Standards Board of the AICPA has undertaken a Clarity and Convergence Project whose aim is to make GAAS easier to read, apply and converge with International Audit Standards. As a result the GAAS will become "Auditing Principles". The principles will be consistent with the three categories of GAAS. Accordingly, which of the following is true?
I The General Standards will be termed Responsibilities Principles.
II. The Fieldwork Standards will be termed Performance Principles.
III. The Reporting Standards will be termed Communication Principles.

Accepted Answer

A)  I and II 
B)  I and III 
C)  II and III 
D)  I, II and III 
A)  I and II 
B)  I and III 
C)  II and III 
D)  I, II and III

Question 6

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Accepted Answer

The three factors that influence the org

Question 7

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

Accepted Answer

Generally accepted auditing standards ar

The Public Company Accounting Oversight Board:

Discuss the relationship between quality control and generally accepted auditing standards.

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Which of the following is not true for audit firms who audit publically traded companies?

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

The Demand for Audit and Other Assurance Services

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 2: The CPA Profession

The Public Company Accounting Oversight Board:

Discuss the relationship between quality control and generally accepted auditing standards.

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Which of the following is not true for audit firms who audit publically traded companies?

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

The Demand for Audit and Other Assurance Services

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters