Question

5. Auditing that involves testing and reporting on whether an organization has complied with the requirements of various laws, regulations and agreements is referred to as:

a) Statutory auditing

b) Regulatory auditing

c) Compliance auditing

d) ASB auditing

6. An independent, objective assurance and consulting activity designed to add value and improve an organization’s operation that helps an organization accomplish its objectives is referred to as:

a) Audit services

b) Review services

c) Internal auditing service

d) Compilation services

7. Regarding the Crazy Eddie, Inc. case study that we went over in class, which of the following is true:

a) Crazy Eddie misled the customers by selling factory warranties as extended warranties

b) Crazy Eddie Understated accounts payables with fictitious debt memos from the vendors

c) The internal accountants of Crazy Eddie were at one time former auditors from the firm that provided certified audit services to the company

d) All of these choices were ploys that Eddie Antar and his family conspired

8. “Management had elected to omit substantially all the disclosures required by generally accepted accounting principles” This statement could be found on the auditor/accountant’s report for a(an):

a) Audit

b) Review

c) Compilation

d) Never should be made

9. CPA Must be independent when providing attest services, Which of the following services is (are) considered test services

a) Audit

b) Review

c) Compilation

d) Audit and review only

e) Audit, Review and compilation

Answer 1

5. C) Compliance audit: Compliance auditing means testing and reporting on whether the organization has complied with the requirements of various laws, regulations, and agreements.

6. C) Internal auditing services: Internal audit may be defined as an Independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

7. D) All of these choices were ploys that Eddie Antar and his family conspired

8. C) Compilation

9. E) Audit, review and compilation