Chapter 04
1. An audit failure occurs when an audit firm issues an inaccurate audit opinion and fails to comply with auditing standards.
a. True b. False
ANSWER:
POINTS:
QUESTION TYPE:
HAS VARIABLES: LEARNING OBJECTIVES: NATIONAL STANDARDS:
STATE STANDARDS: TOPICS:
DATE CREATED: DATE MODI...
1. The need for independent assurance arises because the interests of the users of information may be different from
the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Need for Independent Assurance
DATE CREATED: 1/17/2018 2:50 AM
DATE MODIFIED: 1/17/2018 7:42 AM
2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 2:58 AM
DATE MODIFIED: 1/17/2018 7:42 AM
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01
3. A bank using Milton Company's financial statements to evaluate Milton’s loan application is an example of a user’s
need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: User’s Need for Reliable Financial Reporting
DATE CREATED: 1/17/2018 3:00 AM
DATE MODIFIED: 1/17/2018 7:42 AM
4. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Integrated Audit
DATE CREATED: 1/17/2018 3:02 AM
DATE MODIFIED: 1/17/2018 7:42 AM
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 01
5. Auditors obtain and evaluate evidence regarding assertions about economic actions and events to verify the
accuracy of those assertions.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 3:03 AM
DATE MODIFIED: 1/17/2018 7:42 AM
6. Auditing is the process of verifying the accuracy of the financial statements.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 3:04 AM
DATE MODIFIED: 1/17/2018 7:42 AM
Copyright Cengage Learning. Powered by Cognero. Page 3
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