Lauren Alsobrook
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An Introduction to Auditing

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Lauren Alsobrook
Created by Lauren Alsobrook over 7 years ago
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Chapter 1

Question 1 of 13

1

An integrated audit is

Select one of the following:

  • required for all companies

  • required by the IAASB

  • Composed of financial statement audit and an audit of internal control over financial reporting

  • conducted according to audit standards of AICPA

Explanation

Question 2 of 13

1

Evidence

Select one of the following:

  • is composed of various items including underlying records of accounts and docs

  • must be in written form

  • includes records created by the auditor to document audit activities

  • includes only corroborating info obtained from outside the client

Explanation

Question 3 of 13

1

The PCAOB

Select one of the following:

  • is a not for profit entity

  • shares responsibility for standard setting with AICPA

  • creates audit standards that CPA firms must use in all audits

  • is independent of SEC oversight

Explanation

Question 4 of 13

1

The “highest” level of a CPA firm hierarchy is:

Select one of the following:

  • The shareholders.

  • The partners

  • The managers

  • Both a and b

Explanation

Question 5 of 13

1

Which of the following is NOT a “Big Four” firm?

Select one of the following:

  • PWC

  • Grant Thornton

  • Deloitte

  • EY

Explanation

Question 6 of 13

1

Which body regulates the audits of nonpublic companies in the United States?

Select one of the following:

  • PCAOB

  • AICPA

  • IFRS

  • SEC

Explanation

Question 7 of 13

1

The Securities and Exchange Commission:

Select one of the following:

  • is a govt. entity

  • authorizes all PCAOB standards before they become effective

  • Can reject company filings or suspend trading of company stocks

  • All of the above

Explanation

Question 8 of 13

1

The GASB:

Select one of the following:

  • Sets audit standards for auditors engaged in auditing not-for-profit entities.

  • Regulates state and local governments.

  • Set reporting standards for state and local government entities

  • All of the above

Explanation

Question 9 of 13

1

Financial statements must be prepared:

Select one of the following:

  • in accordance with GAAP

  • in accordance with IFRS.

  • in accordance with OCBOA

  • Any of the above, depending on which set of standards the circumstances dictate as applicable.

Explanation

Question 10 of 13

1

The audit engagement team consists of:

Select one of the following:

  • more than one partner.

  • associates and seniors.

  • Managers

  • All of the above

Explanation

Question 11 of 13

1

Which of the following organizations is considered to be a public company?

Select one of the following:

  • A firm whose privately held stock is owned exclusively by an individual.

  • A partnership of doctors.

  • A privately-held firm controlled by three family members

  • A firm whose stock is registered with the SEC

Explanation

Question 12 of 13

1

The auditor

Select one of the following:

  • prepares the financial statements after the client agrees to all adjustments.

  • writes the footnotes to the financial statements to ensure their accuracy.

  • performs work to reach an opinion on the ICFR and financial statements.

  • None of the above

Explanation

Question 13 of 13

1

To which of the following would AICPA attest standards not apply?

Select one of the following:

  • Standard for Accounting and Review Services (SSARS)

  • Elder Care

  • Loans under TALF

  • Internal Control for nonpublic company

Explanation

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