The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient appropriate audit evidence. True False
The auditors' report on a corporation's financial statements usually is addressed to the president of the company. True False
The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. True False
Partners in CPA firms usually have the responsibility for signing the audit report. True False
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Pronouncements of the Federal Accounting Reserve Board.
13. An attestation engagement: A. B. C. D. Has as its primary source of standards the assurance standards. Includes a report on subject matter, or on an assertion about subject matter. Includes search and verification procedures for all major accounts. Is ordinarily an examination, review or compilation engagement.
14. An audit provides reasonable assurance of detecting which of the following types of important illegal acts?
A. B. C. D.
Option A Option B Option C Option D
15. Which of the following is not a type of auditors' opinion? A. B. C. D. Adverse. Ordinary. Qualified. Unqualified.
16. Which of the following is one of the elements of AICPA quality control? A. B. C. D. Assurance of proper levels of association. Due professional care. Engagement performance. Supervision.
17. A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element? A. B. C. D. Engagement performance. Human resources. Leadership responsibilities for quality with the firm. Monitoring
18. Requirements for training, independence and due professional care are included in which group of the generally accepted auditing standards? A. B. C. D. Fieldwork. General. Reporting. Quality control.
19. Which of the following is considered an interpretive publication in the GAAS Hierarchy? A. B. C. D. Appendices to Statements on Auditing Standards. Statements on Auditing Standards. Interpretations of FASB Standards. Auditing articles explaining Statements on Auditing Standards in the Journal of Accountancy.
20. In which paragraph of an audit report are auditing standards generally accepted in the United States
explicitly mentioned in an audit report of a nonpublic company? A. B. C. D. Option A Option B Option C Option D
21. An audit should be designed to achieve reasonable assurance of detecting material misstatements due to: A. B. C. D. Errors. Errors and fraud. Errors, fraud, and those illegal acts with a direct effect on financial statement amounts. Errors, fraud and illegal acts.
22. In an audit opinion on financial statements, the expression "accounting principles generally accepted in the United States of America": A. B. C. D. Appears in both the scope paragraph and the opinion paragraph of the auditors' report. Appears in the introductory paragraph of the auditors' report. Appears in the opinion paragraph of the auditors' report. Does not appear in the auditors' report.
23. To qualify as "generally accepted," an accounting principle must: A. B. C. D. Have substantial authoritative support. Be covered in one or more of the SASs issued by the AICPA. Be set forth in a Financial Reporting Release issued by the SEC. Have received the approval of the FASB.
24. The generally accepted auditing standards adopted by the AICPA include a requirement that the CPAs: A. Assume...