45 test bank for auditing a business risk approach 8th edition

Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao Test Bank for Managerial Accounting with Answers Đề thi trắc nghiệm, Trắc nghiệm kế toán quản trị, kế toán tài chính,ngân hàng đề trắc nghiệm, trắc nghiệm có đáp án, Test bank for managerial accounting

45 Test Bank for Auditing A Business Risk Approach 8th Edition

by Rittenburg

Multiple Choice Questions

What is the criteria used in an operational audit?

2. effectiveness and efficiency

3. rules and regulations

4. company policies

5. Both B and C

Which of the following services is the broadest and most

inclusive?

1. Audit

2. Attestation

3. Assurance

The audit committee of the board of directors of a company is responsible for

1. hiring the auditor

2. preparing the financial statements

3. the audit workpapers

4. independence and obtaining evidence

The criteria against which the auditor measures the fairness of financial statement presentation are known as

1. auditing standards

2. generally accepted accounting principles

3. generally accepted accounting standards

4. governmental accounting principles

Users can reasonably expect audited financial statements to be

1. complete and contain all important financial disclosures, be free from material misstatements and be presented fairly according to GAAS

2. complete and contain all important financial disclosures, be free from material misstatements and be presented fairly according to GAAP

3. complete, be accurate and be presented fairly according to GAAP

4. complete and contain all important financial disclosures, be free from all misstatements and be presented fairly according to the substance of GAAS

The Certified Internal Auditor program is administered by the

2. IIA

3. state's board of accountancy

4. state's society of CPAs

Assurance services may include which of the following?

1. attesting to financial statements

2. examination of the economy and efficiency of governmental operations

3. evaluation of a division's performance for management

4. tax preparation services

5. A, B, and C only

Which type of auditor would typically perform an operational audit?

1. external auditor

2. internal auditor

3. governmental auditor

4. Both B and C

5. All of the above

Results of the financial statement audit are communicated to users through a(n)

1. financial statement

2. written management assertion

3. audit report

4. none of the above.

A service that always requires that a report is provided to a third party is

2. attestation

3. audit

4. Both B and C

Which one of the following statements is not true about internal auditing?

1. Internal auditing is an objective evaluation function

2. Internal auditing is established within an organization

3. Internal auditing's purpose is to provide assurance regarding the company's compliance with stated policies and procedures

4. Internal auditing is established as an independent service to regulatory bodies and creditors

Which type of auditor may perform a financial statement audit?

1. external auditor

2. internal auditor

3. governmental auditor

4. Both A and C

5. All of the above

Which one of the following is not a key attribute needed to

perform assurance?

1. subject matter knowledge

3. established criteria or standards

4. accounting skills

The need for assurance services arises for all of the following reasons EXCEPT:

1. potential bias in providing information

2. Closeness between a user and the organization

3. complexity of the processing systems.

4. remoteness between a user and the organization

The objective of an operational audit is to

1. evaluate whether laws have been broken by management

2. evaluate fairness of presentation of financial statements

3. evaluate compliances with company rules and regulations

4. evaluate the effectiveness and efficiency with which resources are

employed

The AICPA remains a valuable organization because of its

continuing involvement in

1. the audit standard setting process

2. regulation and enforcement of the audit profession

3. education and administration of the CPA exam

4. promulgation of accounting standards

Which one of the following is not a critical component of

assurance services?

1. a process on which service is provided

2. an assurance service provider

3. a user who derives value

4. a CPA

Which one of the following is not part of the attest process?

1. gathering evidence about assertions

2. proving the accuracy of the books and records

3. evaluating evidence against objective criteria

4. communicating the conclusions reached

Auditing is a systematic process that includes all of the following except:

1. communicating results to users

2. procuring and evaluating evidence

3. providing important managerial decisions for a client

4. comparing evidence regarding assertions to certain established criteria

As it relates to an audit, materiality is

1. not taken into consideration

2. related only to the sufficiency of procedures performed

3. based upon audit fees

4. determined based upon the importance to a user of the financial

statements

Internal auditors may perform all of the following types of audits except

1. operational audits

2. compliance audits

3. computer system audits

4. all of the above may be performed by internal auditors

An audit which has as its purpose the evaluation of the economy and efficiency with which resources are employed is known as a(n)

1. financial audit

2. compliance audit

3. operational audit

4. governmental audit

Third-party users of the audit report expect the auditor to do all of the following except:

1. to evaluate measurements and disclosures made by management

2. to provide a biased evaluation of the financial statements

3. to determine whether financial statements are presented in accordance with GAAP

4. to gather sufficient evidence to support their opinion

An “integrated audit” includes an audit of

1. the company’s internal controls

2. the company’s financial statements

3. the company’s compliance with its rules and policies

4. Both A and B

Independent professional services that are provided on financial

or other information that improve the quality of decision making are known as

1. internal auditing

2. financial auditing

3. assurance services

4. attestation services

Users of the audit report can reasonably expect the audited financial statements to be

1. include complete information and contain all financial disclosures

2. presented fairly according to the substance of GAAP

3. free from all errors

4. all of the above

5. none of the above

The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the

1. PCAOB

2. GAO

4. FASB

Which one of the following is not a provider of assurance

services?

1. CPAs

2. internal auditors

3. governmental auditors

4. AICPA

The internal audit profession has emerged and has become active for all of the following reasons except:

1. management's need for an objective appraisal of organizational or

departmental performance

2. increased internal and external emphasis on effective procedures to detect

or prevent fraud

3. compliance with Section 404 of the Sarbanes-Oxley Act of 2002

4. management’s need to delegate the responsibility of the financial

statements

Which of the following is not a component of assurance

services?

1. information or a process on which the assurance services is provided

2. report to a third party

3. a user or a group of users who derive value from the service provided

4. a service provider

Auditing is important in a free market society because

1. the public requires CPAs functioning as divisions of regulatory bodies

2. auditors detect all errors and fraud made by company employees

3. it provides reliable information based upon which to judge economic

performance

4. the auditor is an amiable insurance policy for investors

5. all of the above are true

Congress authorized which of the following organizations to

establish generally accepted accounting principles for public companies?

1. SEC

2. APB

4. FASB

Which one of the following is an example of management

expectations for independent auditors?

1. An expert providing a written communication as the product of the

engagement

2. Individuals who perform day-to-day accounting functions on behalf of the company

3. An active participant in management decision making

4. An internal source of expertise on financial and other matters.

Which one of the following is not a management expectation for independent auditors?

1. an outside source of expertise on accounting matters

2. individuals who perform tests and draw conclusions on assertions

3. a participant in management decision making

4. a provider of a written communication

The organization that issued the Internal Control, Integrated Framework which serves as the primary criterion for evaluating the quality of a company’s internal control system is

4. GAO

What is the criteria used in a compliance audit?

2. effectiveness and efficiency

3. rules and regulations

4. company policies

5. Both C and D

The public expects auditors to

1. understand and enforce principles that best portray the spirit of FASB concepts

2. be neutral to preparers and users of financial information

3. recognize that the public are the primary users of audit services

4. take more responsibility for the discovery of fraud

5. all of the above are expectations of the public

CPA firms performing public financial statement audits must

1. register with the American Institute of Certified Public Accountants

2. register with the Institute of Auditors

3. register with the U.S General Accounting Office

4. register with the Public Company Accounting Oversight Board.

The audit agency for the U S Congress is the

1. SEC

2. GAO

3. IIA

Which one of the following is a potential problem with

management's communication of financial information that causes third parties to desire the independent auditor's assessment of the financial statement presentation?

1. complexity of transactions affecting the financial statements

2. lack of criteria on which to base information

3. remoteness of the user from the organization

4. A and C

CPAs are licensed by the

3. state's board of accountancy

4. state's society of CPAs

The auditor of financial statements must make very difficult

interpretations regarding authoritative literature Additionally, the auditor must

1. consider whether the application of a generally accepted accounting

principle best portrays the economic activity of the company

2. force management to make certain decisions regarding their financial

statements

3. disregard independence in order to find the underlying truth of the

evidence

4. establish new criteria by which financial statements may be compared

An expectation of the public is that the auditor will recognize that the primary users of audit assurance are

1. the clients

2. the Public Company Accounting Oversight Board

4. third-party users

Which of the following are part of the attest process?

1. communicating the conclusions reached to a third party

2. guaranteeing the accuracy of the books and records

3. evaluating evidence against objective criteria

4. A and C

Management of a company is responsible for

1. hiring the auditor

2. preparing the financial statements

3. the audit workpapers

4. independence and obtaining evidence