Ch 1-4 Becker Questions & Answers 2023/2024
Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements?
a.) It is difficult to prepare financial statements that fairly present a company's financial positio...
Which of the following best describes why an independent auditor is asked to express an opinion on the
fair presentation of financial statements?
a.) It is difficult to prepare financial statements that fairly present a company's financial position,
operations, and cash flows without the expertise of an independent auditor
b.) It is management's responsibility to seek available independent aid in the appraisal of the financial
information shown in its financial statements
c.) The opinion of an independent party is needed because a company may not be objective with respect
to its own financial statements
d.) It is a customary courtesy that all stockholders of a company receive and independent report on
management's stewardship of the affairs of the business. - ANSWER-c.) The opinion of an independent
party is needed because a company may not be objective with respect to its own financial statements
Which of the following professional services is an attestation engagement?
a.) A consulting service engagement to provide computer-processing advice to a client
b.) An engagement to report on compliance with statutory requirements
c.) An income tax engagement to prepare federal and state tax returns
d.) The preparation of financial statements from a client's financial records - ANSWER-b.) An engagement
to report on compliance with statutory requirements
, Which of the following attributes is likely to be unique to the audit work of CPAs as compared to the
work performed by practitioners of other professions?
a.) independence
b.)competence
c.) due professional care
d.) complex body of knowledge - ANSWER-a.) independence
Operational audits generally have been conducted by internal auditors and governmental audit agencies
but may be performed by CPAs. A primary purpose of an operational audit is to provide?
a.) a means of assurance that internal accounting controls are functioning as planned
b.) a measure of management performance in meeting organizational goals
c.) the results of internal examinations of financial and accounting matters to a company's top-level
management
d.) aid to the independent auditor, who is conducting the audit of the financial statements - ANSWER-b.)
a measure of management performance in meeting organizational goals
Which of the following best describes the operational audit?
a.) it requires the constant review by internal auditors of the administrative controls as they relate to the
operations of the company
b.) It concentrates on implementing financial and accounting control in a newly organized company
c.) it focuses on verifying the fair presentation of a company's results of operations
d.) It concentrates on seeking aspects of operations in which waste could be reduced by the introduction
of controls - ANSWER-d.) It concentrates on seeking aspects of operations in which waste could be
reduced by the introduction of controls
Compliance auditing often extends beyond audits leading to the expression of opinions on the fairness of
financial presentation and includes audits of efficiency, economy, effectiveness , as well as?
a.) accuracy
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