Auditing Test Bank
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Accessibility: Keyboard Navigation 
Blooms: Remember 
Difficulty: Medium 
Learning Objective: 02-05 Explain how requirements of quality control standards are monitored for public accounting firms. Topic: 02-31 Quality Control Standards 
Topic: 02-32 Elements of Quality Control 
 
 
 
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Chapter 01 An Introduction to Assurance and Financial Statement Auditing 
True / False Questions 
1. Independence standards are required for audits of public companies, but not for audits of private companies. 
True False 
2. Decision makers demand reliable information that is provided by accountants. 
True False 
3. Information asymmetry seldom occurs. 
True False 
4. Conflicts of interest often occur between absentee owners and managers. 
True False 
5. Auditing services and attestation servic...
Chapter 01 The Role of the Public Accountant in the American Economy 
True / False Questions 
1. Independent audits of today place more emphasis on sampling than did the audits of the 19th century. 
True False 
2. The American Institute of Certified Public Accountants issues CPA certificates and permits CPAs to practice. 
True False 
3. A company is either audited by the GAO or internal auditors, but not both. 
True False 
4. The SEC does not pass on the merits of the securities that are registe...
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 MODIFIED: 
True 
1 
True / False 
False 
AUDI.JOHN.18.04.01 
United States - BUSPROG: Comprehension United States - BUSPROG: Ethics 
United States - AK - AICPA BB - Critical thinking 
The Legal Environment...