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Chapter 02 - Professional Standards Chapter 02 Professional Standards True / False Questions 1. The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient appropriate audit evidence. True False 2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. True False 3. The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. True False 4. Partners in CPA firms usually have the responsibility for signing the audit report. True False 5. An audit is more likely to detect tax evasion than violations of antitrust laws. True False 6. The attestation standards do not supersede any of the generally accepted auditing standards. True False 7. A peer review is generally performed by employees of the AICPA. True False 2-1 Chapter 02 - Professional Standards 8. If the auditors discover illegal acts by a client, they ordinarily must immediately resign from the engagement. True False 9. An audit should be designed to provide reasonable assurance of detecting all illegal acts. True False 10. The pronouncements of the International Auditing Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company. True False Multiple Choice Questions 11. Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: A. Option A B. Option B C. Option C D. Option D 12. Which of the following has the highest level of accounting authority within the "GAAP Hierarchy"? A. Authoritative body pronouncements. B. Pronouncements of bodies composed of expert accountants exposed for public comment. C. Pronouncements of bodies composed of expert accountants, not exposed for public comment. D. Pronouncements of the Federal Accounting Reserve Board. 2-2 Chapter 02 - Professional Standards 13. An attestation engagement: A. Has as its primary source of standards the assurance standards. B. Includes a report on subject matter, or on an assertion about subject matter. C. Includes search and verification procedures for all major accounts. D. Is ordinarily an examination, review or compilation engagement. 14. An audit provides reasonable assurance of detecting which of the following types of important illegal acts? A. Option A B. Option B C. Option C D. Option D 15. Which of the following is not a type of auditors' opinion? A. Adverse. B. Ordinary. C. Qualified. D. Unqualified. 16. Which of the following is one of the elements of AICPA quality control? ... View Full Document

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