Question

Q1

Generally accepted auditing standards are

A Required procedures to be used to gather evidence to support financial statements.

B Policies and procedures designed to provide reasonable assurance that the CPA firm and its personnel comply with professional standards.

C Pronouncements issued by the Auditing Standards Board.

	D    Rules acknowledged by the accounting profession because of their universal application.
Q2

An attestation engagement is one in which a CPA is engaged to

A Testify as an expert witness in accounting, auditing, or tax matters, given certain stipulated facts.

B Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.

C Assemble pro forma financial statements based on the representations of the entity's management without expressing any assurance.

D Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.

Q3

Under the Sarbanes-Oxley Act of 2002, which of the following is not a stated responsibility of the Public Company Accounting Oversight Board?

A Issuing auditing standards that must be followed by registered public accounting firms in auditing the financial statements of issuers.

B Conducting inspections of registered public accounting firms.

C Overseeing the registration of public accounting firms.

D Issuing accounting standards that must be followed by issuers in financial reporting.

Q4

he organization charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public is the:

A Government Accounting Standards Board.

B Auditing Standards Board.

C Financial Accounting Standards Board.

D Securities and Exchange Commission.

Q5

The Public Company Accounting Oversight Board (PCAOB) has authority to establish which of the following relating to public companies?

Attestation standards

Independence standards

A Yes

Yes

B Yes

No

C No

Yes

D No

No

Answer 1

Question - (1)

Answer -

Generally accepted auditing standards are pronouncements issued by the Auditing Standards Board.

Hence, Option - (C) is Correct, because this statement is True.

Note - Option - (A), Option - (B) and Option - (D) are incorrect, because all these statement are False.

.

Question - (2)

Answer -

An attestation engagement is one in which a CPA is engaged to issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.

Hence, Option - (D) is Correct, because this statement is True, according to AT 101.

Note - Option - (A), Option - (B) and Option - (C) are incorrect, because the attestation standards does not apply on it.