online quiz 2 - Auditing Online quiz 2 1. Question: Which...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Auditing Online quiz 2 1. Question: Which of the following is not true about quality control standards? Your Answer: They apply to attestation engagements as well as to audit engagements. Risk assessment is one of the six interrelated elements of quality control. CORRE CT A CPA firm is required to adopt a system of quality control. Quality control standards relate to the firm’s practice as a whole. Instructor Explanation: Choice “b” is correct. The six interrelated elements of quality control are: human resources, engagement/client acceptance and continuance, leadership responsibilities, performance of the engagement, monitoring, and ethical requirements. Choice “a” is incorrect. Quality control standards apply to auditing, attestation, and accounting and review services. Choice “c” is incorrect. A CPA firm is required to adopt a system of quality control. Choice “d” is incorrect. Quality control standards do relate to the firm’s practice as a whole. Points Received: 10 of 10 Comments: 2. Question: Which of the following is least likely to be included in an examination report related to a financial projection? Your Answer: An opinion that the projection is presented in conformity with AICPA guidelines. A statement that the report is intended solely for the information and use of specified parties. An indication that had the accountants performed additional procedures, other matters might have come to their attention that would have been reported. CORRE CT An opinion that the underlying assumptions provide a reasonable basis for the projection. Instructor Explanation: Choice "c" is correct. This statement would be included in an agreed-upon procedures report, not an examination report. Choice "a" is incorrect. The report would include an opinion that the projection is presented in conformity with AICPA guidelines. Choice "b" is incorrect. The report would include a statement that the report is intended solely for the information and use of specified parties. Choice "d" is incorrect. The report would include an opinion that the underlying assumptions provide a reasonable basis for the projection. Points Received: 10 of 10 Comments: 3. Question:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Which of the following is true about the assurance provided by special reports? Your Answer: A positive opinion may be rendered in some types of special reports. CORRE CT All special reports result in negative assurance. All special reports result in positive assurance. A list of procedures and findings (but no assurance) is provided in some special reports. Instructor Explanation: Choice "a" is correct. Positive assurance is provided in OCBOA reports, reports on specified elements, accounts, or items, and reports on special-purpose financial presentations to comply with contractual agreements or regulatory provisions. Choice "b" is incorrect. Positive assurance is provided in OCBOA reports, reports on specified
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

online quiz 2 - Auditing Online quiz 2 1. Question: Which...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online