Auditing Chapter 1

33 Questions  I  By Kosdaisy
Quiz based on Auditing and Assurances Services by Arens 14e

  
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1.  Compliance audits evaluate the efficiency and effectiveness of any part of an organization's operating procedures and methods.
A.
B.
2.  A CPA firm that provides accounting, tax and consulting services to a client is said to be providing assurance services to the client.
A.
B.
3.  When conducting a financial statement audit, an auditor need not verify that the financial statements are in accordance with specified criteria.
A.
B.
4.  The distinguishing factor between an external and internal auditor is independence.
A.
B.
5.  In addition to having an understanding of accounting, an auditor should possess knowledge in the accumulation and interpretation of audit evidence.
A.
B.
6.  An auditor's independence is a critical component in the audit of a company's financial statements.
A.
B.
7.  Operational audits generally have been conducted by internal auditors and governmental audit agencies, but may be performed by certified public accountants. A primary purpose of an operational audit is to provide
A.
B.
C.
D.
8.  A attestation engagement is one in which a CPA is engaged to
A.
B.
C.
D.
9.  Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:
A.
B.
C.
D.
10.  In the audit of historical financial statements, which of the following accounting bases is the most common?
A.
B.
C.
D.
11.  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):
A.
B.
C.
D.
12.  Three common types of attestation services are:
A.
B.
C.
D.
13.  The organization that is responsible for providing oversight for auditors of public companies is called the ________.
A.
B.
C.
D.
14.  Providing quantitative information that management and others can use to make decisions is the function of:.
A.
B.
C.
D.
15.  An operational audit has as one of its objectives to:
A.
B.
C.
D.
16.  An audit of historical financial statements is most often performed to determine whether the:
A.
B.
C.
D.
17.  An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?
A.
B.
C.
D.
18.  An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):
A.
B.
C.
D.
19.  Which of the following services provides the lowest level of assurance on a financial statement?
A.
B.
C.
D.
20.  In “auditing” financial accounting data, the primary concern is with:
A.
B.
C.
D.
21.  Which of the following is not a Trust Services principle as defined by the AICPA or CICA?
A.
B.
C.
D.
22.  Which one of the following is more difficult to evaluate objectively?
A.
B.
C.
D.
23.  The Sarbanes-Oxley Act prohibits a CPA firm that audits a public company from providing which of the following types of services to that company?
A.
B.
C.
D.
24.  Which of the following audits can be regarded as generally being a compliance audit?
A.
B.
C.
D.
25.  The trait that distinguishes auditors from accountants is the:
A.
B.
C.
D.
26.  Attestation services on information technology include WebTrust services and SysTrust services. Which of the following statements most accurately describes SysTrust services?
A.
B.
C.
D.
27.  The criteria by which an auditor evaluates the information under audit may vary with the information being audited.
A.
B.
28.  The criteria used by an external auditor to evaluate published financial statements are known as generally accepted auditing standards.
A.
B.
29.  Only companies that file annual statements with the Securities and Exchange Commission are required to have an annual external audit.
A.
B.
30.  The financial statements most commonly audited by external auditors are the balance sheet, the income statement, and the statement of changes in retained earnings.
A.
B.
31.  The primary purpose of a compliance audit is to determine whether the financial statements are prepared in compliance with generally accepted accounting principles.
A.
B.
32.  Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.
A.
B.
33.  CPA firms are never allowed to provide bookkeeping services for audit clients.
A.
B.
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Quiz Comments (2)
its is very tricky and helpful.
i need answers for these questions please.
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