ch02 - ch02 Student 1 Auditors may be independent in fact but not independent in appearance True False 2 Auditing Standards issued by the PCAOB are the

ch02 - ch02 Student 1 Auditors may be independent in fact...

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ch02Student: ___________________________________________________________________________1.Auditors may be independent in fact but not independent in appearance. True False2.Auditing Standardsissued by the PCAOB are the sole source of guidance for audits of public entities. True False3.Attestation standards provide guidance for a wide variety of engagements different in scope than an audit. True False4.Generally accepted auditing standards must be followed on all audit engagements. True False5.The reporting principle relates to a firm's system of quality control criteria for conducting an audit. True False6.Auditors cannot effectively satisfy the responsibilities principle requiring due care if they have not also satisfied the performance principle. True False7.Substantive procedures performed by the audit team are most closely related to the risk of material misstatement. True False8.Auditing procedures are the same as auditing standards. True False9.The concept of due care reflects the need to plan and perform the audit with an appropriate level of professional skepticism. True False10.Under the performance principle, auditors are required to provide absolute assurance that the client's financial statements do not contain material misstatements. True False11.The performance principle sets forth the quality criteria for conducting an audit. True False12.Auditors of public entities registered with the Securities and Exchange Commission are required to register with the Public Company Accounting Oversight Board. True False13.Control risk is the probability that a material misstatement (error or fraud) could occur and not be prevented or detected on a timely basis by the auditors' substantive procedures. True False14.The word appropriatenessrefers to the number of transactions or components of an account balance examined by auditors. True False15.To be considered material, an item must be one that would influence the decision of financial statement users. True False
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16.The contents of the auditors' report are guided by the performance principle of GAAS. True False17.An unqualified opinion indicates that the financial statements present the entity's financial condition, results of operations, and cash flows in conformity with GAAP. True False18.The auditors' report should either contain an expression of opinion on the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. True False19.Evidence is considered appropriate when it is both valid and relevant. True False20.The purpose of a system of quality control is to provide reasonable assurance that the firm and its personnel issue reports that are appropriate under the circumstances. True False
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  • Spring '12
  • janigrt
  • Public Company Accounting Oversight Board, Attestation Standards

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