Chap002 - Chapter 02 - Professional Standards Chapter 02...

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Chapter 02 - Professional Standards Chapter 02 Professional Standards Multiple Choice Questions 1. The attestation standards of reporting do not require a statement that A. Provides a conclusion whether the subject matter is presented in conformity with established or stated criteria B. The practitioner has significant reservations about the engagement C. Identifies the subject matter or assertion being reported on D. The accountant assumes no responsibility to update the report Difficulty: Easy Source: Original 2. Control risk is A. The probability that a material misstatement could not be prevented or detected by the entity's internal control policies and procedures B. The probability that a material misstatement could occur and not be detected by auditors' procedures C. The risk that auditors will not be able to complete the audit on a timely basis D. The risk that auditors will not properly control the staff on the audit engagement Difficulty: Medium Source: Original 3. Auditing is based on the assumption that financial data and statements are A. In conformity with GAAP B. Verifiable C. Presented fairly D. Consistently applied Difficulty: Hard Source: Original 2-1
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Chapter 02 - Professional Standards 4. The general standards under generally accepted auditing standards do not include which of the following? A. Training and proficiency B. Independent attitude C. Due professional care D. Planning and supervision Difficulty: Easy Source: Original 5. Which of the following types of auditors' reports does not require an explanation to support the opinion? A. Unqualified opinion B. Adverse opinion C. Qualified opinion D. Disclaimer of opinion Difficulty: Easy Source: Original 6. Which of the following is an element of an accounting firm's quality control system that should be considered in establishing its quality control policies and procedures? A. Lending credibility to a client's financial statements B. Using statistical sampling techniques C. Acceptance and continuance of clients D. Membership in the Center for Public Company Audit Firms (CPCAF) Difficulty: Medium Source: Original 2-2
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Chapter 02 - Professional Standards 7. Which of the following presumptions does not relate to the reliability of audit evidence? A. The more effective the client's internal control, the more assurance it provides about the accounting data and financial statements B. The auditors' opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost C. Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity D. The independent auditors' direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly Difficulty: Hard Source: AICPA 8. According to the fourth standard of reporting of generally accepted auditing standards, when an overall opinion cannot be given, auditors must A. Withdraw from the engagement
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This note was uploaded on 05/26/2011 for the course ACCT 403 taught by Professor Mark during the Spring '10 term at Strayer.

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Chap002 - Chapter 02 - Professional Standards Chapter 02...

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