Question

1. In communications with clients, when should CPAs refer to themselves as auditors: a) During any...

1. In communications with clients, when should CPAs refer to themselves as auditors:

a) During any type of engagement (Assurance or Attestation)

b) Only for review and audit attestation engagements

c) Only for audit attestation engagements

d) For all compilation, review and audit engagements

2. A compilation report that omits substantially all notes and disclosures:

a) Is not allowed

b) Includes an adverse opinion

c) Must indicate that management has elected to omit such information

d) Includes a qualified opinion

3. Which of the following forms of accountant association always leads to a report intended solely for certain parties:

a) Compilation report which omits essentially all footnotes and disclosures

b) Agreed upon procedures

c) Review report on comparative financial statements

d) Audit of a nonpublic entity

4. Regarding the consideration of internal control in an information technology environment the auditor would be concerned with:

a) Access controls

b) General ledger presentation

c) Cost of the underlying software program

d) Age of the hardware

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

10. Crazy Eddie Inc. created fictitious inventory be moving items between warehouses prior to the auditors assisting in physical inventory count. What effect did this have on the financial statements:

a) Only affect the balance sheet presentation.

b) Reduced the current Ratio significantly

c) Lowered the cost of goods sold and created higher gross profit

d) increased the cost of goods sold and reduced gross profit for tax purposes

11. A declaration about whether subject matter is presented in accordance with certain criteria is referred to as:

a) Assertion

b) Assumption

c) Attestation

d) Examination

12. Based on our review we are not aware of any material modifications that should be made to the accompany financial statements…” is a statement that is made on the report of:

a) A review

b) An audit

c) A comparison

d) A compilation, audit and review

13. External auditors are responsible to:

a) External users

b) Management

c) Board of directors

d) External users, management and Board of Directors

e) Management and board of directors only

14. Internal auditors are employed by companies to perform:

a) Internal audits

b) Operational audits

c) Certified audits

d)Internal and operational audits

e) Internal, operational and certified audits

Homework Answers

Answer #1

1. In communications with clients, when should CPAs refer to themselves as auditors:

c) Only for audit attestation engagement.

2. A compilation report that omits substantially all notes and disclosures:

c) Must indicate that management has elected to omit such information

3. Which of the following forms of accountant association always leads to a report intended solely for certain parties:

b) Agreed upon procedures

4. Regarding the consideration of internal control in an information technology environment the auditor would be concerned with:

a) Access controls

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. Auditing that involves testing and reporting on whether an organization has complied with the requirements...
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....
1.Attestation services are performed by A. external auditors B. internal accountants C. internal auditors D. third-party...
1.Attestation services are performed by A. external auditors B. internal accountants C. internal auditors D. third-party accountants 2. One characteristic of employee fraud is that the fraud A. is perpetrated at a level to which internal controls do not apply B. involves misstating financial statements C. involves the direct conversion of cash or other assets to the employee’s personal benefit D. involves misappropriating assets in a series of complex transactions involving third parties
In order to obtain more reliable evidence, _______. A the auditors should request that management generate...
In order to obtain more reliable evidence, _______. A the auditors should request that management generate it B the auditors should request the internal audit function generate it C auditors must exercise professional skepticism and be prepared to modify the planned audit procedures as needed D auditors should only rely on internally generated evidence
The case WorldCom On 9 June 2003, the US Bankruptcy Court of New York issued an...
The case WorldCom On 9 June 2003, the US Bankruptcy Court of New York issued an interim report (Thornburgh, 2003) which expanded on the Court’s earlier find- ings (Thornburgh, 2002) of lack of corporate gov- ernance, mismanagement and concern regarding the integrity of WorldCom’s accounting and fi- nancial reporting functions. Amongst the numer- ous incidents of mismanagement, corporate gov- ernance failure and accounting irregularities, the most salient related to the overstatement of re- ported profitability by inappropriately capitaliz- ing very...
1Which of the following statements is correct concerning the concept of materiality? A. Materiality depends only...
1Which of the following statements is correct concerning the concept of materiality? A. Materiality depends only on the amount of an item relative to other items in the financial statements. B. Materiality depends on the nature of an item rather than the amount. C. Materiality is a matter of professional judgment of auditor. D. Materiality is determined by reference to guidelines established by the SPK. 2Which of the following is not an audit procedure for subsequent events? A. Review of...
1. If your accounting firm is hired to examine a public company’s gift card program for...
1. If your accounting firm is hired to examine a public company’s gift card program for compliance with regulations. Which type of service is your firm providing? Select one: a. Assurance b. Attestation c. Auditing d. Review 2. Near the end of an audit, the application of analytical procedures is Select one: a. recommended by auditing standards. b. not mentioned by auditing standards. c. not useful, since detailed substantive procedures have already been performed. d. required by auditing standards. 3....
Questions 1.Assume you have evaluated an event and given it a score of 2 for probability...
Questions 1.Assume you have evaluated an event and given it a score of 2 for probability and 3 for impact. Another event was given a score of 3 for probability and 2 for impact. What can be said about the two events given they both had scores of 5. A.The event with the highest probability should be given the most concern B.The event with the highest impact should be given the most concern c. Judgment of the auditor determines which...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor has selected an audit sample of accounts with a total book value of $1,000 and an audited value of $1,200. Extrapolating this deviation over the entire population would result in an estimated total audited value of: a. $144,000 b. $140,000 c. $120,000 d. $100,000 2. Which of the following is only applicable to a public company audit report? a. A public company report is...
Hi. I want to get feedback on this question. What should i add or remove or...
Hi. I want to get feedback on this question. What should i add or remove or any correction. Boulded written is question and regulat writing is answer. Please guide. Thank you. BACKGROUND Apply audit risk and materiality concepts to address the following circumstances regarding Able & Baker LLP’s audits of the financial statements of Foster Engineering, Inc. 1. Able & Baker LLP auditors are beginning their audit of Foster’s 2017 financial statements. Because of changes in the market and increased...
ADVANCED AUDIT Part A. Multiple Choice 1. Professional skepticism is: Select one: Select one: a. Necessary...
ADVANCED AUDIT Part A. Multiple Choice 1. Professional skepticism is: Select one: Select one: a. Necessary for a quality control system b. Adherence to the professional code of ethics c. An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence. d. The application of relevant training, knowledge and experience, within the context provided by auditing, accounting and ethical standards, in making informed...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT