Question 1

The most common way for users to obtain reliable information is to

Accepted Answer

A)  have an internal audit.
B)  have an independent audit.
C)  verify all information individually.
D)  verify the information with management.E) C) and D)
F) All of the above B

Question 2

Auditors strive to maintain a high level of independence to keep the confidence of users relying on their reports.

Accepted Answer

A) True 
 B)False

Question 3

The primary role of the United States General Accounting Office is the enforcement of the federal tax laws as defined by Congress and interpreted by the courts.

Accepted Answer

A) True 
 B)False  False

Question 4

The primary purpose of a management consulting engagement is to generate a recommendation to management.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the differences and similarities between the roles of accountants and auditors.What additional expertise must an auditor possess beyond that of an accountant?

Accepted Answer

The role of accountants is to record,cla...

Question 6

What are the four categories of attestation services?

Accepted Answer

The four categories of attestation servi...

Question 7

Which of the following is an accurate statement regarding the various types of other assurance services?

Accepted Answer

A)  Assurance services must be about the reliability of another party's assertion about compliance with specified criteria.
B)  Other assurance services must meet the definition of an attestation service.
C)  The primary purpose of a management consulting engagement is to improve the quality of information.
D)  The market for other forms of assurance services is open to non-CPA competitors.E) B) and C)
F) C) and D) D

Question 8

What is an audit of internal control over financial reporting?

Accepted Answer

For an audit of internal control over fi...

Question 9

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

Accepted Answer

A)  finance.
B)  auditing.
C)  accounting.
D)  economics.E) B) and C)
F) None of the above

Question 10

External users of the financial statements

Accepted Answer

A)  value the auditor's report because of the auditor's independence from the client.
B)  look to the auditor's report as an indication of the statements' reliability.
C)  use the audited information on the assumption that it is reasonably complete,accurate,and unbiased.
D)  all of the above.E) A) and B)
F) None of the above

Question 11

Internal auditors

Accepted Answer

A)  must be independent of the entity that employs them.
B)  generally report to the accounting department.
C)  are employed by all types of organizations.
D)  must be CPAs.E) None of the above
F) A) and B)

Question 12

________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

Accepted Answer

A)  Client acceptance
B)  Information
C)  Business
D)  ControlE) A) and B)
F) All of the above

Question 13

Which of the following can be used as a criteria for evaluating information being audited?

Accepted Answer

A)  International Financial Reporting Standards (IFRS) 
B)  Generally Accepted Accounting Principles (GAAP) 
C)  Internal Revenue Code (IR
C)  
D)  all of the aboveE) B) and D)
F) A) and D)

Question 14

Which of the following audits can be regarded as generally being a compliance audit?

Accepted Answer

A)  IRS agents' examinations of taxpayer returns
B)  GAO auditor's evaluation of the computer operations of governmental units
C)  an internal auditor's review of a company's payroll authorization procedures
D)  a CPA firm's audit of a public companyE) A) and B)
F) A) and C)

Question 15

A high,but not absolute,level of assurance is called

Accepted Answer

A)  probable assurance.
B)  reasonable assurance.
C)  limited assurance.
D)  incomplete assurance.E) A) and B)
F) None of the above

Question 16

CPA firms are never allowed to provide bookkeeping services for clients.

Accepted Answer

A) True 
 B)False

Question 17

To perform an audit,there must be information in a verifiable form and some criteria by which the auditor can evaluate the information.

Accepted Answer

A) True 
 B)False

Question 18

Auditors focus on determining whether recorded information properly reflects the economic events that occurred during the accounting period.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  operational audit
B)  compliance audit
C)  financial statement audit
D)  production auditE) A) and B)
F) B) and C)

Question 20

One criteria used by an external auditor to evaluate published financial statements is known as generally accepted auditing standards.

Accepted Answer

A) True 
 B)False

Exam 1: The Demand for Audit and Other Assurance Services

The most common way for users to obtain reliable information is to

Correct AnswerverifiedB

Auditors strive to maintain a high level of independence to keep the confidence of users relying on their reports.

Correct AnswerverifiedShow Answer

The primary role of the United States General Accounting Office is the enforcement of the federal tax laws as defined by Congress and interpreted by the courts.

Correct AnswerverifiedFalse

The primary purpose of a management consulting engagement is to generate a recommendation to management.

Correct AnswerverifiedShow Answer

Discuss the differences and similarities between the roles of accountants and auditors.What additional expertise must an auditor possess beyond that of an accountant?

Correct AnswerverifiedThe role of accountants is to record,cla...View AnswerShow Answer

What are the four categories of attestation services?

Correct AnswerverifiedThe four categories of attestation servi...View AnswerShow Answer

Which of the following is an accurate statement regarding the various types of other assurance services?

Correct AnswerverifiedD

What is an audit of internal control over financial reporting?

Correct AnswerverifiedFor an audit of internal control over fi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

External users of the financial statements

Correct AnswerverifiedShow Answer

Internal auditors

Correct AnswerverifiedShow Answer

________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

Correct AnswerverifiedShow Answer

Which of the following can be used as a criteria for evaluating information being audited?

Correct AnswerverifiedShow Answer

Which of the following audits can be regarded as generally being a compliance audit?

Correct AnswerverifiedShow Answer

A high,but not absolute,level of assurance is called

Correct AnswerverifiedShow Answer

CPA firms are never allowed to provide bookkeeping services for clients.

Correct AnswerverifiedShow Answer

To perform an audit,there must be information in a verifiable form and some criteria by which the auditor can evaluate the information.

Correct AnswerverifiedShow Answer

Auditors focus on determining whether recorded information properly reflects the economic events that occurred during the accounting period.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One criteria used by an external auditor to evaluate published financial statements is known as generally accepted auditing standards.

Correct AnswerverifiedShow Answer

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B

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False

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The role of accountants is to record,cla...
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The four categories of attestation servi...
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D

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For an audit of internal control over fi...
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