Stephany Fox
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Quiz questions for auditing

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Stephany Fox
Created by Stephany Fox almost 9 years ago
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Audit Chapters 1 and 2

Question 1 of 16

1

Which of the following are some of the elements of the auditing definition given in class?

Select one or more of the following:

  • Systematic process

  • Objective

  • Exact

  • Evaluate claims

  • Intuitive

  • Communicate results

Explanation

Question 2 of 16

1

Which of the following the correct definition for information risk?

Select one of the following:

  • The risk that an entity will fail to meet its stated business objectives

  • The risk that the information disseminated by a company will be materially false or misleading.

  • All accounts are presented in the appropriate place and all information required has been disclosed in the statements and footnotes.

Explanation

Question 3 of 16

1

A pubic company is a company that sells its stocks or bonds to the public, giving the public a valid interest in the proper use, or stewardship, over the company's resources.

Select one of the following:

  • True
  • False

Explanation

Question 4 of 16

1

In a public company, which of the following would be considered an agent?

Select one or more of the following:

  • Manager of company

  • Stockholders of company

Explanation

Question 5 of 16

1

Which ordering of the sections of an audit report is correct?

Select one or more of the following:

  • Explanatory paragraph, intro, opinion, scope

  • Scope, explanatory paragraph, intro, opinion

  • intro, opinion, scope, explanatory paragraph

  • Intro, scope, opinion, explanatory paragraph

Explanation

Question 6 of 16

1

An opinion means financial statements are free of material misstatements.

Drag and drop to complete the text.

    unqualified
    qualified
    adverse
    accrual

Explanation

Question 7 of 16

1

Select from the dropdown list to complete the text.

A ( qualified, unqualified, general, negative ) opinion means the client's financial statements contain a misstatement the auditor considers material. The auditor explains that the financial statements are fairly statement except for the identified misstatement.

Explanation

Question 8 of 16

1

Fill the blank space to complete the text.

An opinion means there is a misstatement in the financial statements that the auditor considers so material that is pervasively affects the interpretation of the financial statements. As a result, the financial statements cannot be trusted.

Explanation

Question 9 of 16

1

Reasonable assurance risk is the risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 16

1

Which of the following does the auditor's standard report claim to provide?

Select one of the following:

  • 100% guarantee financial statements are correct

  • No confirmable evidence about the reliability of financial statements for large-scale investors

  • Reasonable assurance that financial statements don't contain material misstatements.

Explanation

Question 11 of 16

1

Fill the blank space to complete the text.

is the magnitude of a misstatement that would change the judgment of a reasonable investor.

Explanation

Question 12 of 16

1

Which of the following entities is responsible for setting standards for public company audits?

Select one or more of the following:

  • PCAOB

  • ASB

Explanation

Question 13 of 16

1

Select the GENERAL STANDARDS of GAAS from below:

Select one or more of the following:

  • sufficient competent evidence

  • adequate disclosure

  • adequate training and proficiency as an auditor

  • independence in attitude

  • due professional care in planning and performing

Explanation

Question 14 of 16

1

Select the FIELDWORK STANDARDS from GAAS from the list below:

Select one or more of the following:

  • adequately planned and assistants supervised

  • understand internal controls to determine the nature, timing, and extent

  • sufficient competent evidence

  • express an opinion

  • adequate disclosure

Explanation

Question 15 of 16

1

Select the REPORTING STANDARDS from GAAS from the list below:

Select one or more of the following:

  • presented in accordance with GAAP

  • identify when principles have not been consistently applied

  • express an opinion

  • adequate disclosure

  • adequate training and proficiency as an auditor

  • sufficient competent evidence

Explanation

Question 16 of 16

1

GAAS and SAS are considered to be minimum standards of performance for auditors.

Select one of the following:

  • True
  • False

Explanation

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