Acct3101 Tutorial Question 1

Acct3101 Tutorial Question 1 - Tutorial 1 1.21 a (1)...

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Tutorial 1 1.21 (Objectives 1, 2, 4) The following questions deal with audits by public accounting firms. Choose the best response. a Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements? (1) It is difficult to prepare financial statements that fairly present a company’s financial position, operations and cash flows without the expertise of an independent auditor. (2) It is management’s responsibility to seek available independent aid in the appraisal of the financial information shown in its financial statements. (3) The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements. (4) It is a customary courtesy that all shareholders of a company receive an independent report on management’s stewardship of the affairs of the business. b Independent auditing can best be described as: (1) a branch of accounting (2) a discipline that attests to the results of accounting and other functional operations and data (3) a professional activity that measures and communicates financial and business data (4) a regulatory function that prevents the issuance of improper financial information. c Which of the following professional services would be considered an attestation engagement? (1) a consulting service engagement to provide information technology processing advice to a client (2) an engagement to report on statutory requirements (3) an income tax engagement to prepare Federal and State tax returns (4) the compilation of financial statements from a client’s financial records. aca66d93e90d964c6ccc7bc1d42e63d8bc6cbb3e.doc
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d In performing an attestation engagement, a public accountant typically: (1) supplies litigation support services (2) assesses control risk at a low level (3) expresses a conclusion about an assertion (4) provides management consulting advice. (AICPA adapted) 1.23 (Objective 11) The following questions deal with quality controls. Choose the best response. a Inquiring of third parties as to any information regarding a prospective client and its management which may have a bearing on evaluating the prospective client is a procedure relevant to the quality control objective of (l) supervision (2) assignment of personnel to engagements (3) client evaluation (4) guidance and assistance. b
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Acct3101 Tutorial Question 1 - Tutorial 1 1.21 a (1)...

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