Solved by verified expert :• 5 out of
5 points
The most common way for users to
obtain reliable information is to:
• Question
2
5 out of 5 points
Which of the following is not a
SysTrust Services principle as defined by the AICPA?
• Question
3
5 out of 5 points
One objective of an operational
audit is to:
• Question
4
5 out of 5 points
An accountant:
• Question
5
0 out of 5 points
Any service that requires a CPA
firm to issue a report about the reliability of an assertion that is made by
another party is a(n):
• Question
6
5 out of 5 points
The three requirements for
becoming a CPA include all but which of the following?
• Question
7
5 out of 5 points
Which of the following is an
element of the CPA’s quality control system that should be considered in
establishing its quality control policies and procedures?
• Question
8
5 out of 5 points
Which of the following statements
best describes the primary purpose of Statements on Auditing Standards?
• Question 9
5 out of 5 points
Which of the following is not one
of the responsibilities of an auditor under the principles underlying an audit?
• Question
10
5 out of 5 points
Within the context of quality
control, the primary purpose of continuing professional education and training
activities is to enable a CPA firm to provide its personnel with:
• Question
11
5 out of 5 points
Statements on Standards for
Accounting and Review Services are issued by the:
• Question
12
5 out of 5 points
The purpose of establishing
quality control policies and procedures to accept or continue a client
relationship is to:
• Question
13
5 out of 5 points
Whenever the client imposes
restrictions on the scope of the audit, the auditor should be concerned that
management may be trying to prevent discovery of misstatements. In such cases,
the auditor will likely issue a:
.
• Question
14
5 out of 5 points
If the phrase “except
for” is present in the opinion paragraph of the audit report, the auditor
has issued a(n):
• Question
15
5 out of 5 points
Auditing standards for public
companies are established by the:
• Question
16
5 out of 5 points
A CPA may wish to emphasize
specific matters regarding the financial statements even though an unqualified
opinion will be issued. Normally, such explanatory information is:
.
• Question
17
5 out of 5 points
When there is uncertainty about a
company’s ability to continue as a going concern, the auditor’s concern is the
possibility that the client may not be able to continue its operations or meet
its obligations for a “reasonable period of time.” For this purpose,
a reasonable period of time is considered not to exceed:
• Question
18
5 out of 5 points
If most or all users’ decisions
that are based on the financial statements are likely to be significantly
affected, the materiality level is:
• Question
19
0 out of 5 points
Of the four parts of the AICPA’s
Code of Professional Conduct, which part is enforceable?
• Question
20
5 out of 5 points
A CPA firm may charge a
contingent fee for:
• Question
21
5 out of 5 points
________ means that a person acts
according to conscience, regardless of the situation.
• Question
22
5 out of 5 points
Freedom from ________ means the
absence of relationships that might interfere with objectivity or integrity.
• Question
23
5 out of 5 points
“Independence” in
auditing means:
• Question
24
5 out of 5 points
Which of the following is
required for a firm to designate itself “Member of the American Institute
of Certified Public Accountants” on its letterhead?
• Question
25
5 out of 5 points
The AICPA’s Code of Professional
Conduct states that a CPA should maintain integrity and objectivity. The term
“objectivity” in the Code refers to a CPA’s ability to:
• 5 out of 5 points
The standard of due care to which
the auditor is expected to adhere to in the performance of the audit is
referred to as the:
• Question 2
5 out of 5 points
A broad interpretation of the
rights of third-party beneficiaries holds that users that the auditor should
have been able to foresee as being likely users of financial statements have
the same rights as those with privity of contract. This is known as the concept
of:
• Question 3
5 out of 5 points
If an auditor fails to fulfill a
certain requirement in the contract, they may be guilty of:
• Question 4
5 out of 5 points
The preferred defense in third
party suits is:
• Question 5
5 out of 5 points
Which of the following auditor’s
defenses usually means nonreliance on the financial statements by the user?
• Question 6
5 out of 5 points
Laws that have been passed by the
U.S. Congress and other governmental units are:
• Question 7
5 out of 5 points
Which of the following would most
likely be deemed a direct-effect illegal act?
• Question 8
5 out of 5 points
Management assertions are:
• Question 9
5 out of 5 points
In certifying their annual
financial statements, the CEO and CFO of a public company certify that the
financial statements comply with the requirements of:
• Question 10
5 out of 5 points
In testing for cutoff, the
objective is to determine:
• Question 11
5 out of 5 points
The objective of an audit of the
financial statements is an expression of an opinion on:
• Question 12
5 out of 5 points
“The auditor should not
assume that management is dishonest, but the possibility of dishonesty must be
considered.” This is an example of:
• Question 13
5 out of 5 points
An example of a document the
auditor receives from the client, but which was prepared by someone outside the
client’s organization, is a:
• Question 14
5 out of 5 points
Audit evidence has two primary
qualities for the auditor; relevance and reliability. Given the choices below,
which provides the auditor with the most reliable audit evidence?
• Question 15
5 out of 5 points
When practical and reasonable,
U.S. auditing standards require the confirmation of:
• Question 16
5 out of 5 points
The auditor must gather
sufficient and appropriate evidence during the course of the audit. Sufficient
evidence must:
• Question 17
5 out of 5 points
Which of the following statements
regarding the relevance of evidence is correct?
.
• Question 18
5 out of 5 points
Which of the following generally
provides the most reliable evidence?
• Question 19
5 out of 5 points
When the auditor develops
supporting evidence for amounts posted to account balances with documentary
evidence, that process is called:
• Question 20
5 out of 5 points
The preliminary audit strategy:
• Question 21
5 out of 5 points
The two major factors affecting
acceptable audit risk are:
• Question 22
5 out of 5 points
Business risk:
• Question 23
5 out of 5 points
Written communication that the
auditor will provide reasonable assurance for the detection of fraud is found
in:
• Question 24
5 out of 5 points
Which of the following normally
signs the engagement letter for an audit of a private company?
• Question 25
5 out of 5 points
If an auditor is requested to
perform nonaudit services for a public company audit client, who is responsible
for agreeing to those services with the audit firm?
