ccchhh1 - ch01 Student 1 Financial decision makers demand reliable information that is provided by accountants True False 2 Financial decision makers

ccchhh1 - ch01 Student 1 Financial decision makers demand...

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ch01Student: ___________________________________________________________________________1.Financial decision makers demand reliable information that is provided by accountants. True False2.Financial decision makers obtain their accounting information from lenders of funds. True False3.Four conditions that create demand for reliable information are complexity, remoteness, timeliness, and consequences. True False4.The lending of credibility to financial information is known as certification. True False5.Independent auditors are employees of the client. True False6.Assurance service is the systematic process of objectively obtaining and evaluating evidence. True False7.Evidence consists of assertions about economic actions and events. True False8.The purpose of obtaining and evaluating evidence is to ascertain the degree of correspondence between the assertions and established criteria. True False9.The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing. True False10.The PCAOB audit objective related to the completeness assertion is to establish evidence that assets, liabilities, and equities actually exist. True False11.The ASB balance audit objective related to valuation or accuracy is to determine whether proper values have been assigned to assets, liabilities, equities, revenues, and expenses. True False12.The objective of internal auditing is to assist members of an organization to effectively perform their obligations. True False13.Internal auditors perform only operational audits. True False14.Government auditors perform both financial and performance audits. True False15.Expanded scope governmental auditing includes economy and efficiency and program results audits. True False16.The AICPA licenses CPAs to practice in the United States. True False
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17.Professional skepticism is an auditor's tendency not to believe anyone. True False18.Assurance services are independent professional services that improve the quality of information or its context for decision makers. True False19.The concept "professional skepticism" requires that auditors assume management is dishonest and should not be trusted. True False20.For independent auditors of financial statements in the United States, established criteria largely consist of the generally accepted accounting principles (GAAP). True False
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  • Spring '12
  • janigrt
  • Accounting, Financial audit

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