Auditing Exam - Accounting 408 Exam 1 Chapters 1-3 A B C I...

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Accounting 408 Name _______________________ Exam 1 Chapters 1-3, A, B, C Row _______ I. Multiple Choice. (2 points each) Read the following questions carefully and indicate the one best answer to each question by placing a mark in the appropriate space on the answer sheet. 1. Who is sometimes referred to as the “Father of Accounting.” a. Piero della Francesca b. Milano San Seplocro c. Joseph Dimaggio d. Luca Paciola 2. Which of the following procedures is an accountant least likely to perform during an engagement to review the financial statements of a nonpublic company? a. observing the safeguards over access to and use of assets and records b. comparing the financial statements with anticipated results in budgets and forecasts c. inquiring of management about actions taken at the board of directors’ meetings d. studying the relationships of financial statement elements expected to conform to predictable patterns 3. Which of the following would not be included in an accountant’s report based upon a review of the financial statements of a nonpublic entity? a. A statement that the review was in accordance with GAAS. b. A statement that identifies the type of service that was performed. c. A statement describing the principal procedures performed. d. A statement describing the accountant’s conclusions based upon the results of the review. 4. The purpose of a review engagement for financial statements of a nonpublic entity is to a. provide limited assurance with respect to the entity's financial statements. b. satisfy a request by management to present management's information in the form of financial statements. c. provide no assurance with respect to the entity's financial statements. d. provide the highest level of assurance in an attest report with respect to the entity's financial statements. 5. GAAS encompass four reporting standards. They include all but which of the following? a. The report shall state whether the financial statements are presented in accordance with GAAP. b. The report shall state that GAAS have been followed in the conduct of the audit. c. The report should identify those circumstances in which GAAP have not been consistently applied. d. Informative disclosures in the financial statements are to be regarded as reasonably adequate unless otherwise stated in the report.
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6. Eagle Company's financial statements contain a departure from generally accepted accounting principles because, due to unusual circumstances, the statements would otherwise be misleading. The auditor should express an opinion that is a. qualified, and describe the departure in a separate paragraph. b. unqualified, but not mention the departure in the auditor's report. c.
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This note was uploaded on 03/07/2011 for the course ACCOUNTING 111 taught by Professor Meme during the Spring '11 term at Arizona.

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Auditing Exam - Accounting 408 Exam 1 Chapters 1-3 A B C I...

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