ACC 403 QUIZ 1

07 Jul ACC 403 QUIZ 1

• Question 1
2 out of 2 points

Which of the following is not a SysTrust Services principle as defined by the AICPA?
Answer
Selected Answer:
Operational integrity

• Question 2
2 out of 2 points

Which of the following is considered audit evidence?
Answer
Selected Answer:
Oral statements
made by management Written
Communications Auditor
Observation

• Question 3
2 out of 2 points

Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):
Answer
Selected Answer:
attestation service.

• Question 4
2 out of 2 points

The most common way for users to obtain reliable information is to:
Answer
Selected Answer:
have an independent audit.

• Question 5
2 out of 2 points

In “auditing” financial accounting data, the primary concern is with:
Answer
Selected Answer:
determining whether recorded information properly reflects the economic events that occurred during the accounting period.

• Question 6
2 out of 2 points

The Sarbanes-Oxley Act applies to which of the following companies?
Answer
Selected Answer:
Public companies

• Question 7
2 out of 2 points

A correct relationship among the auditor, the client, and the external users is:
Answer
Selected Answer:
the external users can rely upon the auditor’s report to reduce information risk.
• Question 8
2 out of 2 points

________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.
Answer
Selected Answer:
Information

• Question 9
2 out of 2 points

The three requirements for becoming a CPA include all but which of the following?
Answer
Selected Answer:
Character requirements

• Question 10
2 out of 2 points

Three common types of attestation services are:
Answer
Selected Answer:
audits of historical financial statements, reviews of historical financial statements, and audits of internal control over financial reporting.

• Question 11
2 out of 2 points

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:
Answer
Selected Answer:
accounting.

• Question 12
2 out of 2 points

An accountant:
Answer
Selected Answer:
must have an understanding of the principles and rules that provide the basis for preparing the accounting information.

• Question 13
2 out of 2 points

Which of the following services provides the lowest level of assurance on a financial statement?
Answer
Selected Answer:
A review

• Question 14
2 out of 2 points

One objective of an operational audit is to:
Answer
Selected Answer:
make recommendations for improving performance.

• Question 15
2 out of 2 points

The use of the Certified Public Accountant title is regulated by:
Answer
Selected Answer:
state law through a licensing department or agency of each state.

• Question 16
2 out of 2 points

In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:
Answer
Selected Answer:
management is responsible for the preparation of the financial statements.

• Question 17
2 out of 2 points

Which of the following statements best describes the primary purpose of Statements on Auditing Standards?
Answer
Selected Answer:
They are interpretations that are intended to clarify the meaning of “generally accepted auditing standards.”

• Question 18
2 out of 2 points

The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:
Answer
Selected Answer:
Form 8-K.

• Question 19
2 out of 2 points

Historically auditing standards have been organized into three categories, including:
Answer
Selected Answer:
Standards of field work.

• Question 20
2 out of 2 points

Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit?
Answer
Selected Answer:
Plan work and supervise assistants

• Question 21
2 out of 2 points

The legal right to perform audits is granted to a CPA firm by regulation of:
Answer
Selected Answer:
each state.

• Question 22
2 out of 2 points

The International Standards on Auditing (ISAs):
Answer
Selected Answer:
has many of the same standards as the Auditing Standards Board (ASB).

• Question 23
2 out of 2 points

The Public Company Accounting Oversight Board:
Answer
Selected Answer:
performs inspections of the quality controls of audit firms that audit public companies.

• Question 24
2 out of 2 points

The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:
Answer
Selected Answer:
Form S-1.

• Question 25
2 out of 2 points

The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:
Answer
Selected Answer:
report on the financial statements.

• Question 26
2 out of 2 points

Which of the following is an element of the CPA’s quality control system that should be considered in establishing its quality control policies and procedures?
Answer
Selected Answer:
Assigning personnel to engagements

• Question 27
2 out of 2 points

Statements on Standards for Accounting and Review Services are issued by the:
Answer
Selected Answer:
Accounting and Review Services Committee.

• Question 28
2 out of 2 points

When assessing the risk of material misstatements in the financial statements,
Answer
Selected Answer:
the auditor must have an understanding of the client’s business and industry.

• Question 29
2 out of 2 points

Members of the Public Company Accounting Oversight Board are appointed and overseen by:
Answer
Selected Answer:
the Securities and Exchange Commission.
• Question 30
2 out of 2 points

The organization that is responsible for providing oversight for auditors of public companies is called the ________.
Answer
Selected Answer:
Public Company Accounting Oversight Board