Question 1

Historically auditing standards have been organized into three categories, including:

Accepted Answer

A)  Standards of field work.
B)  Purpose of an audit.
C)  Responsibilities of the auditor.
D)  Proper planning and supervision.E) All of the above
F) A) and B)

Question 2

Professional skepticism must be maintained only if the auditor suspects fraud.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about Generally Accepted Audit Standards are true?
I.They serve as broad guidelines to auditors for conducting an audit engagement.
II.They are sufficiently specific to provide any meaningful guide to practitioners.
III.They represent a framework upon which the AICPA can provide interpretations..

Accepted Answer

A)  I and II
B)  I and III
C)  II and III
D)  I, II and IIIE) A) and B)
F) All of the above

Question 4

All of the Big Four accounting firms and many of the smaller CPA firms now operate as Limited Liability Partnerships.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Auditing standards applicable to financial statements of private companies
B)  Compilation and review standards
C)  Professional conduct
D)  Auditing standards applicable to financial statements of private and public companiesE) None of the above
F) B) and D)

Question 6

The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

Accepted Answer

A)  continuing professional education.
B)  compliance with generally accepted reporting standards.
C)  quality control.
D)  peer review.E) C) and D)
F) B) and C)

Question 7

The methods used to ensure the firm meets its professional responsibilities to clients and others.

Accepted Answer

A)  AICPA
B)  PCAOB
C)  Securities Exchange Commission
D)  Form 10-k
E)  IAASBF) Form S-1G) Due professional careH) Limited Liability PartnershipI) Professional CorporationJ) Limited Liability CompanyK) Peer reviewL) 1933 Securities ActM) 1934 Securities ActN)  Form 8-kO)  State RegulationP)  Code of Professional ConductQ)  Quality Control StandardsR)  GAAS StandardsS) K) and P)
T) D) and J)

Question 8

If an auditor of a public company cannot find guidance issued by the PCAOB on a particular audit matter, the auditor should generally seek guidance from which of the following sources?

Accepted Answer

A)  Statements on Auditing Standards
B)  Statements on Standards for Accounting and Review Services
C)  Regulations issued by the Securities and Exchange Commission
D)  The AICPA Code of Professional ConductE) B) and C)
F) A) and D)

Question 9

Form 10-K must be filed with the SEC whenever a public company experiences a significant event.

Accepted Answer

A) True 
 B)False

Question 10

Sarbanes-Oxley and the Securities Exchange Commission restrict auditors from providing many consulting services to their publicly traded audit clients.Which of the following is true for auditors of publicly traded companies?
I. They are restricted from providing consulting services to privately held companies.
II. There is no restriction on providing consulting services to non-audit clients.

Accepted Answer

A)  I only
B)  II only
C)  I and II
D)  Neither I or IIE) None of the above
F) A) and B)

Question 11

Sets professional standards and rules for auditors.

Accepted Answer

A)  AICPA
B)  PCAOB
C)  Securities Exchange Commission
D)  Form 10-k
E)  IAASBF) Form S-1G) Due professional careH) Limited Liability PartnershipI) Professional CorporationJ) Limited Liability CompanyK) Peer reviewL) 1933 Securities ActM) 1934 Securities ActN)  Form 8-kO)  State RegulationP)  Code of Professional ConductQ)  Quality Control StandardsR)  GAAS StandardsS) C) and H)
T) B) and F)

Question 12

Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

Accepted Answer

A) True 
 B)False

Question 13

Many small, local accounting firms do not perform audits as their primary services to their clients include accounting and tax.

Accepted Answer

A) True 
 B)False

Question 14

Discuss the purpose of the Securities and Exchange Commission and its influence on setting generally accepted accounting principles.

Accepted Answer

The SEC, an agency of the federal govern...

Question 15

The Statements on Auditing Standards issued by the Auditing Standards Board:

Accepted Answer

A)  are regarded as authoritative literature.
B)  are the equivalent of laws for audit practitioners.
C)  must be followed in all situations.
D)  are optional guidelines which an auditor may choose to follow or not follow when conducting an audit.E) C) and D)
F) B) and D)

Question 16

List and describe the six elements of quality control.Who establishes the standards for quality control?

Accepted Answer

•Leadership responsibilities for quality...

Question 17

The Public Company Accounting Oversight Board:

Accepted Answer

A)  performs inspections of the quality controls of audit firms that audit public companies.
B)  establishes auditing standards that must be followed by CPAs on all audits.
C)  oversees auditors of private companies.
D)  performs any of the above functions.E) B) and C)
F) A) and D)

Question 18

Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors.

Accepted Answer

A) True 
 B)False

Question 19

Statements on Standards for Accounting and Review Services are issued by the:

Accepted Answer

A)  Accounting and Review Services Committee.
B)  Professional Ethics Executive Committee.
C)  Securities and Exchange Commission.
D)  Financial Accounting Standards Board.E) B) and D)
F) All of the above

Exam 2: The Cpa Profession

Statements on Standards for Accounting and Review Services are issued by the:

Correct Answer
verified

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

Correct Answer
verified

Many small, local accounting firms do not perform audits as their primary services to their clients include accounting and tax.

Correct Answer
verified

The methods used to ensure the firm meets its professional responsibilities to clients and others.

Correct Answer
verified

Form 10-K must be filed with the SEC whenever a public company experiences a significant event.

Correct Answer
verified

All of the Big Four accounting firms and many of the smaller CPA firms now operate as Limited Liability Partnerships.

Correct Answer
verified

Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors.

Correct Answer
verified

Correct Answer
verified

Professional skepticism must be maintained only if the auditor suspects fraud.

Correct Answer
verified

List and describe the six elements of quality control.Who establishes the standards for quality control?

Correct Answer
verified
•Leadership responsibilities for quality...
View Answer

The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

Correct Answer
verified

If an auditor of a public company cannot find guidance issued by the PCAOB on a particular audit matter, the auditor should generally seek guidance from which of the following sources?

Correct Answer
verified

Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

Correct Answer
verified

The Statements on Auditing Standards issued by the Auditing Standards Board:

Correct Answer
verified

Historically auditing standards have been organized into three categories, including:

Correct Answer
verified

Discuss the purpose of the Securities and Exchange Commission and its influence on setting generally accepted accounting principles.

Correct Answer
verified
The SEC, an agency of the federal govern...
View Answer

Correct Answer
verified

Sets professional standards and rules for auditors.

Correct Answer
verified

The Public Company Accounting Oversight Board:

Correct Answer
verified

Exam 2: The Cpa Profession

Statements on Standards for Accounting and Review Services are issued by the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Many small, local accounting firms do not perform audits as their primary services to their clients include accounting and tax.

Correct AnswerverifiedShow Answer

The methods used to ensure the firm meets its professional responsibilities to clients and others.

Correct AnswerverifiedShow Answer

Form 10-K must be filed with the SEC whenever a public company experiences a significant event.

Correct AnswerverifiedShow Answer

All of the Big Four accounting firms and many of the smaller CPA firms now operate as Limited Liability Partnerships.

Correct AnswerverifiedShow Answer

Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Professional skepticism must be maintained only if the auditor suspects fraud.

Correct AnswerverifiedShow Answer

List and describe the six elements of quality control.Who establishes the standards for quality control?

Correct Answerverified•Leadership responsibilities for quality...View AnswerShow Answer

The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

Correct AnswerverifiedShow Answer

If an auditor of a public company cannot find guidance issued by the PCAOB on a particular audit matter, the auditor should generally seek guidance from which of the following sources?

Correct AnswerverifiedShow Answer

Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

Correct AnswerverifiedShow Answer

The Statements on Auditing Standards issued by the Auditing Standards Board:

Correct AnswerverifiedShow Answer

Historically auditing standards have been organized into three categories, including:

Correct AnswerverifiedShow Answer

Discuss the purpose of the Securities and Exchange Commission and its influence on setting generally accepted accounting principles.

Correct AnswerverifiedThe SEC, an agency of the federal govern...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Sets professional standards and rules for auditors.

Correct AnswerverifiedShow Answer

The Public Company Accounting Oversight Board:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
•Leadership responsibilities for quality...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The SEC, an agency of the federal govern...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified