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Auditing - Mid Term

39 Questions  I  By Dodonutt
Glossary Quizzes & Trivia
Auditing 416 - Mid-term Review - multiple choice from book

  
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1.  The first general standard, which states in part that the audit must be performed by a person or persons having adequate technical training, requires that an auditor have
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D.
2.  During an audit engagement, pertinent data are compiled and included in the audit files. The audit files primarily are considered to be
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D.
3.  The introductory paragraph of an auditor's report contains the following " We did not audit the financial statements of EZ, Inc., a whollt owned subsidiary, which statements reflect total assets and revenues constituting 27% and 29%, respectively, of the consolidated totals.  Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for EZ, Inc., is based soley on the report of the other auditors."  These sentences:
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B.
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D.
4.  Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?
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B.
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D.
5.  A CPA firm is reasonably assured of meeting its responsibility to provide services that conform with professional standards by
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D.
6.  Which of the following statements about combined report on the financial statements and internal control over financial reporting is correct?
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D.
7.  The major reason an independent auditor gathers audit evidence is to
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8.  Although the quantity, type, and content of audit documentation will vary with the circumstances, audit documentation generally will include the
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D.
9.  If a principal auditor decides to refer in his or her report to the audit of another auditor, he or she is required to disclose the
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10.  The nature and extent of a CPA firm's quality control policies and procedures depends on:CP Firm's Size      Nature of the CPA Firm's Practice     Cost-benefit Consideration
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11.  In performing an attestation engagement, a CPA typically,
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12.  When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can coninue in existence, the auditor should issue a (an)
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13.  Operational audits generally have been conducted by internal auditors and governmental audit agencies buy may be performed by certified public accountants.  A primary purpose of an operational audit is to provide
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D.
14.  Which of the following statements describes why a properly designed and executed audit may not detect a material misstatement in the financial statements resulting from fraud?
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B.
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D.
15.  An entity changed from the straight-line method to the declining-balance method of depreciation for all newly acquired assets.  This change has no material effect on the current year's financial statements but is reasonably certain to have a substantial effect in later years.  If the change is disclosed in the notes to the financial statements, the auditor should issue a report with a report with a(an)
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D.
16.  Which of the following is not a primary purpose of audit documentation?
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D.
17.  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
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18.  Which of the following is an element of a CPA firm's quality control system that should be considered in establishing its quality control policies and procedures?
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D.
19.  An auditor will most likely disclaim an opinion because of
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20.  An independent audit aids in the communication of economic data because the audit
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21.  An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors and fraud that might have a material effect on the financial statements. Which of the following, if material, is a fraud as defined in auditing standards?
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22.  The general goup of the generally accepted auditing standards includes a requirement that:
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23.  What is the general character of the three GAAS classified as standards of field work?
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24.  Which of the following types of documentary evidence should the auditor consider to be the most reliable?
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25.  The date of the CPA’s opinion on the financial statements of the client should be the date of the
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26.  The most reliable type of audit evidence that an auditor can obtain is
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27.  The permanent file of an auditor’s working papers most likely would include copies of the
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28.  Which of the following professional services is an attestation engagements?
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29.  Which of the following is an element of a CPA firm's quality control system that should be considered in establising its quality control policies and procedures?Human Resources     Monitoring     Engagement Performance
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D.
30.  Which of the following best describes the operational audit?
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31.  Which of the following best describes why an indpendent auditor is asked to express an opinion on the fair presentation of financial statements?
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D.
32.  What assurance does the auditor provide that errors, fraud, and direct-effect illegal acts that are material to the financial statements will be detected?Errors     Fraud     Direct-Effect Illegal Acts
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33.  A CPA will issue and adverse auditor's opinion if
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34.  The opinion paragraph of a CPA's report states: "In our opinion, except for the effects of not capitalizing certain lease obligations, as discussed in the preceeding paragraph, the financial statements present fairly" in allmaterial respects,....This paragraph expresses a(an)
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35.  Which of the followig best describes what is meant by generallty accepted auditing standards?
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36.  Independent auditing can best be described as
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37.  In comparison to the external auditor, an internal auditor is more likely to be concerned with
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38.  Which of the following presumptions is correct about the reliability of audit evidence?
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39.  Which of the following best describes the reason why an independent auditor reports on financial statements?
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