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ACCT 370 – PRACTICE FINAL EXAM 1. Which statement is correct with respect to continuing professional education (CPE) requirements of members of the AICPA? A. Only members employed by the AICPA are required to take such courses B. Only members in public practice are required to take such courses C. Members, regardless of whether they are in public practice, are required to meet such requirements D. There is no requirement for members to participate in CPE 2. When compared to an audit performed prior to 1900, an audit today: A. Is more likely to include tests of compliance with laws and regulations B. Is less likely to include consideration of the effectiveness of internal control C. Has bank loan officers as the primary financial statement user group D. Includes a more detailed examination of all individual transactions 3. The serially-numbered pronouncements issued by the Auditing Standards Board over a period of years are known as: A. Auditing Statements of Position (ASPs) B. Accounting Series Releases (ASRs) C. Statements on Auditing Standards (SASs) D. Statements on Auditing Principles (SAPs) 4. The risk associated with a company's survival and profitability is referred to as: A. Business Risk B. Information Risk C. Detection Risk D. Control Risk 1
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5. The Statements on Auditing Standards have been issued by the: A. Auditing Standards Board B. Financial Accounting Standards Board C. Securities and Exchange Commission D. Federal Bureau of Investigation 6. The review of a company's financial statements by a CPA firm: A. Is substantially less in scope of procedures than an audit B. Requires detailed analysis of the major accounts C. Is of similar scope as an audit and adds similar credibility to the statements D. Culminates in issuance of a report expressing the CPA's opinion as to the fairness of the statements 7. Which of the following are issued by the Securities and Exchange Commission? A. Accounting Research Studies B. Accounting Trends and Techniques C. Industry Audit Guides D. Financial Reporting Releases 8. When the auditors express an opinion on financial statements their responsibilities extend to: A. The underlying wisdom of their client's management decisions B. Whether the results of their client's operating decisions are fairly presented in the financial statements C. Active participation in the implementation of the advice given to their client D. An ongoing responsibility for their client's solvency 9. An investor reading the financial statements of The Sundby Corporation observes that the statements are accompanied by an unqualified auditors' report. From this the investor may conclude that: A. Any disputes over significant accounting issues have been settled to the auditors' satisfaction B. The auditors are satisfied that Sundby is operationally efficient C. The auditors have ascertained that Sundby's financial statements have been prepared accurately D. Informative disclosures in the financial statements but not necessarily in the footnotes are to be regarded as
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This note was uploaded on 12/18/2011 for the course ACCT 370 taught by Professor Gripp during the Spring '11 term at WPUNJ.

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