a high but not absolute level of assurance is called answer: - reasonable assurance
an audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a answer: - compliance audit
an examination of part of an organizati...
a high but not absolute level of assurance is call
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AUDITING FINAL EXAM 2024 WITH COMPLETE SOLUTION
a high but not absolute level of assurance is called answer: - reasonable assurance
an audit to determine whether an entity is following specific procedures or rules set down by some
higher authority is classified as a answer: - compliance audit
an examination of part of an organization's procedures and methods for the purpose of evaluating
efficency and effectiveness is what type of audit answer: - operational audit
auditors do not provide which of the following answer: - absolute assurance on the financial
statements including assuming responsibility for them
recording, classifying, and summarizing economic events in a logical manner for the purpose of providing
financial information for decision making is commonly called answer: - accounting
the accumulation and evaluation of evidence about information to determine and report on the degree
of correspondence between the information and some established criteria is defined as answer: -
auditing
the possibility that a business may not be able to repay a bank loan because of an economic downturn is
referred to as answer: - business risk
the trait that distinguishes auditors from accountants is the answer: - auditor's expertise in the
accumulation and the interpretation of audit evidence
the use of the certified public accountant title is regulated by answer: - state law through the licensing
departments of each state
three common types of attestation services are answer: - audits of historical financial statements,
reviews of historical financial statements, and audits of internal control over financial reporting
,which of the following audits can be regarded as generally being a compliance audit answer: - IRS
agents' examination of taxpayer returns
which of the following is considered audit evidence answer: - oral statements made by management,
written communications, auditor observations Y Y Y
which of the following services provides the lowest level of assurance on a financial statement answer:
- review
which one of the following is more difficult to evaluate objectively answer: - efficiency and
effectiveness of operations
which type of auditor audits the financial information prepared by various federal government agencies
before it is submitted to congress answer: - GAO auditor
historically, auditing standards have been organized into theree categories, including answer: -
standards of field work
how often is the AICPA peer review program performed of an AICPA member CPA firm administered by a
state CPA Society under the overall direction of the AICPA peer review board answer: - every 3 years
in order to properly plan and perform an audit, an important fact for both the auditor and the client to
understand is that answer: - management is responsible for the preparation of the financial
statements
in which type of service does the cpa assemble the financial statements but provide no assurance to
third parties answer: - compilation
statements on standards for accounting and review services SSARS are issued by the answer: -
accounting and review services committee
,the aicpa principles and the auditing standards should be viewed by practitioners as answer: -
minimum standards of performance that must be achieved on each audit engagement
the legal right to perform audits is granted to a cpa firm by regulation of answer: - each state
the method used by a cpa firm to ensure that the firm meets its professional responsibilities to clients
and others is answer: - quality control
the organization that is responsible for providing oversight for auditors of public companies is called the
answer: - public company accounting oversight board
the purpose of establishing quality control policies and procedures to accept or continue a client
relationship is to answer: - minimize the likelihood of associating with a client whose management
may lack integrity
when assessing the risk of material misstatements in the financial statements answer: - the auditor
must understand the client's business and industry
which of the following is a correct statement regarding the SEC answer: - the SEC has the power to
establish rules for any CPA associated with audited financial statements submitted to the commission
which staff level in a cpa firm manages the overall relationship with the client and manages the audit in
general answer: - the audit manager
who is responsible for establishing auditing standards for privately held companies answer: - auditing
standards board
_____ is an attitude that includes a questioning mind, being alter to conditions that might indicate
possible mistatements due to fraud or error, and a critical assessment of audit evidence answer: -
professional skepticism
a misstatement in the financial statements can be considered material if knowledge of the misstatement
, will affect a decision of answer: - a reasonable user of the financial statements
a qualified opinion can be issued for which of the following? I when a limitation on the scope of the audit
has occured II when the auditor lacks independence III when generally accepted accounting principles
have not been used answer: - I and III
A restriction on the scope of the auditor's examination requires answer: - a qualifying paragraph
preceding the opinion paragraph
after the balance sheet date but prior to issuance of the auditor's report the auditor learns that the
client's facility in a foreign country has been expropriated. management refused to disclose this
information in a financial statement footnote or present pro-forma data as to the effect of the event. the
auditor should answer: - provide the information in the report and modify the opinion
all of the following are causes for the addition of an emphasis of a matter paragraph under both aicpa
and pcaob standards except for answer: - reports involving other auditors
an adverse opinion is issued when the auditor believes answer: - the overall financial statements are
so materially misstated that they do not present fairly the financial position or results of operations and
cash flows in conformity iwth GAAP
as a result of management's refusal to permit the auditor to physically examine inventory, the auditor
must depart from the unmodified opinion audit report because answer: - the scope of the audit has
been restricted
auditing standards require that the audit report must be titled and that the title must answer: - include
the word "independent"
for the report containing a disclaimer for lack of independence, the disclaimer is in the answer: - first
and only paragraph
if most or all users' decisions that are based on the financial statements are likely to be significatly
affected, the materiality level is answer: - pervasive
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