Question 1

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Accepted Answer

A) True 
 B)False

Question 2

The Auditing Standards Board of the AICPA has undertaken a Clarity and Convergence Project whose aim is to make GAAS easier to read, apply and converge with International Audit Standards. As a result the GAAS will become "Auditing Principles". The principles will be consistent with the three categories of GAAS. Accordingly, which of the following is true?
I The General Standards will be termed Responsibilities Principles.
II. The Fieldwork Standards will be termed Performance Principles.
III. The Reporting Standards will be termed Communication Principles.

Accepted Answer

A)   I and II
B)   I and III
C)   II and III
D)   I, II and IIIE) A) and C)
F) C) and D)

Question 3

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

Accepted Answer

Generally accepted auditing standards ar...

Question 4

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Accepted Answer

The three factors that influence the org...

Question 5

The Public Company Accounting Oversight Board:

Accepted Answer

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

Question 6

Which of the following is not true for audit firms who audit publically traded companies?

Accepted Answer

A)   They must undergo a PCAOB inspection on an annual basis if they audit more than 100 issuers
B)   They must have an AICPA peer review on all audit clients.
C)   They must have an AICPA peer review on all non-publically traded clients.
D)   The audit firm can choose which CPA firm they wish to conduct their AICPA peer review.E) A) and B)
F) B) and C)

Question 7

Discuss the relationship between quality control and generally accepted auditing standards.

Accepted Answer

For a CPA firm, quality control encompas...

Exam 2: The CPA Profession

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Correct Answer
verified
The three factors that influence the org...
View Answer

Discuss the relationship between quality control and generally accepted auditing standards.

Correct Answer
verified
For a CPA firm, quality control encompas...
View Answer

Which of the following is not true for audit firms who audit publically traded companies?

Correct Answer
verified

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

Correct Answer
verified
Generally accepted auditing standards ar...
View Answer

The Public Company Accounting Oversight Board:

Correct Answer
verified

Correct Answer
verified

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Correct Answer
verified

Exam 2: The CPA Profession

List and describe the three factors that influence the organizational structure of all CPA firms. What are the most common forms of CPA firm organization?

Correct AnswerverifiedThe three factors that influence the org...View AnswerShow Answer

Discuss the relationship between quality control and generally accepted auditing standards.

Correct AnswerverifiedFor a CPA firm, quality control encompas...View AnswerShow Answer

Which of the following is not true for audit firms who audit publically traded companies?

Correct AnswerverifiedShow Answer

Distinguish between generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). What professional organization establishes GAAS? What professional organization establishes GAAP?

Correct AnswerverifiedGenerally accepted auditing standards ar...View AnswerShow Answer

The Public Company Accounting Oversight Board:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Quality controls are established for the entire CPA firm whereas GAAS are applicable to the individual engagement.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The three factors that influence the org...
View Answer

Correct Answer
verified
For a CPA firm, quality control encompas...
View Answer

Correct Answer
verified

Correct Answer
verified
Generally accepted auditing standards ar...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified