ACC 403 AUDITING MIDTERM EXAM PART 1


Question Description:

$25
  • Question 1

5 out of 5 points

The Sarbanes-Oxley Act applies to which of the following companies?

Answer

Selected Answer:
  • Question 2

5 out of 5 points

An accountant:

Answer

Selected
  • Question 3

5 out of 5 points

An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

Answer

  • Question 4

5 out of 5 points

In “auditing” financial accounting data, the primary concern is with:

Answer

  • Question 5

5 out of 5 points

One objective of an operational audit is to:

Answer

  • Question 6

5 out of 5 points

An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

Answer

  • Question 7

5 out of 5 points

The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:

Answer

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  • Question 8

5 out of 5 points

The AICPA has authority to establish standards and rules in all but which of the following areas?

Answer

  • Question 9

5 out of 5 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

  • Question 10

5 out of 5 points

Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

Answer

  • Question 11

5 out of 5 points

Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

Answer

Sel
  • Question 12

5 out of 5 points

The organization that is responsible for providing oversight for auditors of public companies is called the ________.

Answer

  • Question 13

5 out of 5 points

A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:

Answer

  • Question 14

5 out of 5 points

As a result of management’s refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

Answer

  • Question 15

5 out of 5 points

When dealing with materiality and scope limitation conditions:

Answer

  • Question 16

5 out of 5 points

The auditor’s responsibility section of the standard audit report states that the auditor is:

Answer

  • Question 17

5 out of 5 points

The auditor’s responsibility section of the standard unqualified audit report states that the audit is designed to:

Answer

Selected Answer:
  • Question 18

5 out of 5 points

An adverse opinion is issued when the auditor believes:

Answer

  • Question 19

5 out of 5 points

Which of the following represents all of the ways a CPA firm can be organized under Rule 505?

Answer

  • Question 20

5 out of 5 points

The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

Answer

  • Question 21

5 out of 5 points

Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

Answer

  • Question 22

5 out of 5 points

A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:

Answer

  • Question 23

5 out of 5 points

“Independence” in auditing means:

Answer

  • Question 24

5 out of 5 points

The financial interests of a CPA’s family members can affect the CPA’s independence. Which of the following parties would not be included as a “direct financial interest” of the CPA?

Answer

  • Question 25

5 out of 5 points

The underlying reason for a code of professional conduct for any profession is:

Answer

Answer

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