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30 Quick Auditing questions

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Question;1.The name _____ is used to describe the broad range of information enhancement servicesthat are provided by certified public accountants.A.assurance serviceB.attest engagementC.audit of financial statementsD.compliance auditE.CPA examination2.To _____to information means to provide assurance as to its reliability.A.assertB.assureC.attestD.auditE.comply3.Ina(n) _____ audit, the auditors undertake to gather evidence and provide a high level ofassurance that the financial statements follow generally accepted accounting principles,or some other appropriate basis of accounting.A.complianceB.financial statementC.integratedD.operationalE.systems4.In adequate accounting and reporting _____.A.conceal waste and inefficiencyB.prevent an efficient allocation of economic resourcesC.promote an efficient allocation of economic resourcesD.A and/or BE.A and/or C5.The Sarbanes-Oxley Act of 2002 _____.A.created the Public Company Accounting Oversight Board to oversee theaccounting professionB.included a set of reforms that toughened penalties for corporate fraudC.restricted the types of consulting CPAs may perform on public company auditclientsD.all of the aboveE.A and/or B, only6.An integrated audit includes providing assurance on the _____.A.the effectiveness and efficiency of operationsB.effectiveness of internal controls over financial reportingC.financial statementsD.all of the aboveE.B and C, only7.With respect to the accounting profession, _____.A.each state recognizes public accountancy as a profession and issues a certificate ofcertified public accountantB.the CPA examination is a uniform national examination prepared and graded bythe American Institute of Certified Public AccountantsC.the CPA examination is a uniform national examination prepared and graded bythe Public Company Accounting Oversight BoardD.A and B, onlyE.A and C, only8.Public accounting firms are organized as_____,A.limited liability companiesB.partnershipsC.practitionersD.professional corporationsE.all of the above9.Critical to the profession is the need for independence in _____.A.appearanceB.factC.both A and BD.either A or B, but not bothE.neither A nor B10.Errors relate to _____ the financial statements.A.intentional acts that cause a misstatement ofB.unintentional misstatement or omissions of amounts inC.unintentional misstatement or omissions of disclosures inD.any of the aboveE.B or C, only11.A standard audit report includesa(n) _____ opinion.A.unmodifiedB.unqualifiedC.standardD.any of the aboveE.A or B, only12.Auditors issue aqualified opinion when there is _____.A.a limitation so significant as to overshadow an overall opinion on the financialstatementsB.any limitation on the scope of their audit workC.a significant limitation on the scope of their audit workD.any of the aboveE.A and/or C, only13.The attestation standards are meant to _____.A.provide guidance for the performance of audits of historical financial statementsB.serve as a general framework for the attest functionC.set boundaries for the attest functionsD.all of the aboveE.B and C, only14.In the broad sense, the concept of ?quality control? means that CPA firms shouldestablish controls to provide assurance that they meet their responsibilities to _____.A.theirclientsB.the publicC.both A and BD.either A or B, but not bothE.neither A nor B15.International financial reporting standards are considered to be _____ generally acceptedaccounting principles of the United States.A.equally principle-based as theB.less principle-based thanC.more principle-based thanD.unrelated to theE.none of the above16.Ethics has been defined as the study of moral principles and values that govern _____ ofan individual or a group.A.actionsB.decisionsC.both A and BD.either A or B, but not bothE.neither A nor B17.An individualin a situation in which a decision must be made with respect to appropriatebehavior isa(n) _____.A.ethical dilemmaB.ethic predicamentC.moral dilemmaD.moral predicamentE.none of the above18.Statement 1:Perhaps, the most importantconcept embodied in public accountings Codeof Professional Conduct? is independence. Statement 2:The certified public accountingprovides credibility.Statement 3:The attest function serves no useful purpose withoutpublic confidence in the attestor.A.all of the statements are falseB.all of the statements are trueC.only the first and second statements are trueD.only the first and third statements are trueE.only the second and third statements are true19.Certified Public Accountants are required to maintain a confidential relationship withtheir clients, _____.A.but they may disclose confidential client information if the client is a publicly- traded company operating in the United StatesB.so they must not disclose any confidential client informationC.so they must not disclose any confidential client information without the generalconsent of the clientD.so they must not disclose any confidential client information without the specificconsent of the clientE.none of the above20.If certified public accountants are negligent in expressing an opinion on financialstatements, _____ may sustain lossesA.firm creditorsB.millions of investorsC.both A and BD.either A or B, but not bothE.neither A nor B21.Certified public accountants in the United States have liability under _____ law.A.commonB.statutoryC.both A and BD.either A or B, but not bothE.neither A nor B22.More audit evidence is required when the _____.A.risk of misstatement is greaterB.quality of evidence is lowerC.A and/or BD.either A or B, but not bothE.neither A nor B23.Detection risk is _____.A.a function of the effectiveness of the audit procedures performedB.reduced by obtaining additional appropriate evidenceC.the only risk that is completely a function of the sufficiency of the proceduresperformed by the auditorsD.all of the aboveE.A and/or B, only24._____ is a measure of the quantity of audit evidence that should be obtained, and _____is a measure of the quality of audit evidence obtained.A.Appropriate, necessityB.Appropriate, sufficiencyC.Necessity, appropriateD.Necessity, sufficiencyE.Sufficiency, appropriate25.Substantive procedures include _____.A.evaluations of financial statement information by a study of relationship amongfinancial and non-financial dataB.tests of account balances, tests of classes of transactions, and tests of disclosuresC.both A and BD.either A or B, but not bothE.neither A nor B26.Making accounting estimates is _____ responsibility, and such estimates are generally_____ susceptible to material misstatement than other financial statement amounts thatare more certain in amount.A.management?s, equallyB.management?s,lessC.management?s, moreD.the auditor?s, lessE.the auditor?s, more27.Audit documentation is the record of _____.A.relevant audit evidence obtainedB.the audit procedures performedC.the conclusions the auditors? reachD.all of the aboveE.A and B, only28.The working papers should demonstrate that the accounting records _____ to thefinancial statements being audited.A.agreeB.reconcileC.refuteD.A and/or B, onlyE.A and/or C, only29.Audit documentation should identify _____.A.those who performed the workB.those that reviewed the workC.the related dates of performanceD.all of the aboveE.A and C, only30.Auditing is limited to the examination of financial records, and working papers areconfined to schedules and analysis.A.trueB.false:auditing is NOT limited to the examination of financial recordsC.false: working papers are NOT confined to schedules and analysis.D.both B and CE.either A or B, but not both

 

Paper#44261 | Written in 18-Jul-2015

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