What body is reponsible for promulgating governmental auditing rules?
B. The U.S. Government Accountablility Office
Which of the following is not one of the 3 standards of field work
B. due professional care
A list of audit proceudres auditors need to perform to obtain evidence is called an
A. audit program
To be appropriate, evidence must be all of the following except
A. sufficient
An audit report that expresses a favorable opinion on the financial statements is a(n)
D. unqualified opinion
Which of the following procedures would provide the most reliable audit evidence?
C. inspection of bank statements obtained directly from the client's
financial institution
Which of the following is not one of the 4 generally accepted standards of reporting?
A. the auditor should state in the auditor's report whether the audit
was conducted in accordance with GAAS
Management's responsibilty for the financial statements is
C. explicitly represented in the opening paragraph of the auditors'
standard report
The auditors' standard report refers to GAAS and GAAP in which paragraph
GAAS GAAP
C. scope only opinion only
Ordinarily, what source of evidence should least affect audit conclusions?
D. inquiry of management
Which of the following is one of the four standards of reporting included in GAAS?
B. The report shall state whether the financial statements are presented
in accordance with GAAP.
To exercise due professional care, a CPA should:
C. Conduct the engagement in accordance with GAAS and ensure that the
engagement is completed on a timely basis.
One of a CPA firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by following:
A. quality control standards
After the auditors learned of Client Company’s failure to record an expense for obsolete inventory, they agreed to a small adjustment to the financial statements because the Client president told them the company would violate its debt agreements if the full amount were recorded. This is an example of a lack of:
D. audit reporting independence
The primary purpose for obtaining an understanding of the company’s environment (including its internal control) in a financial statement audit is:
D. to determine the nature, timing, and extent of further audit
procedures to be performed
Ordinarily, what source of evidence should least affect audit conclusions?
A. Inquiry of management.
The most persuasive evidence regarding the existence of newly acquired computer equipment is:
C. physical examination
Which of the following procedures would provide the most reliable audit evidence?
C. Inspection of bank statements obtained directly from the client’s
financial institution.
Breaux & Co., CPAs requires that all audit documentation contains the initials of the preparer and the reviewer in the top righthand corner. This procedure provides evidence of Breaux & Co., CPAs’ professional concern regarding which generally accepted auditing standard?
B. Adequate planning and supervision.
The attestation standards do not contain a requirement that auditors obtain:
D. an understanding of the auditee’s internal controls
Auditor Jones is studying a company’s accounting treatment of a series of complicated transactions in exotic financial instruments. She should look for the highest level of authoritative support for proper accounting in:
C. FASB statements on accounting standards
The evidence considered most competent by auditors is best described as:
C. direct personal knowledge obtained through physical observation and
mathematical recalculation
An auditor’s understanding of the control system in an auditee’s organization contributes information for:
C. planning the nature, timing, and extent of further audit procedures
on an audit
What are the 3 categories of requirements to become a CPA
C) Education, Exam, and Experience.
Which one of the following includes the three general auditing standards?
B) Knowledge/training, independence, and due professional care.
What is the general character of the three generally accepted auditing standards classified as standards of field work?
A) The criteria of audit planning and evidence gathering.
Which of the following are part of the standards of reporting?
A) GAAP, consistency, and disclosure.
Management’s representation that all transactions and accounts are included in the financial statements are assertions about
C) completeness
Management’s representation that all the recorded transactions are real transactions is an example of which of the following assertions?
B) existence or occurrence
In order to make an audit more manageable and efficient the accounts and journals are grouped into?