14 which of the following professionals has primary

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14. Which of the following professionals has primary responsibility for the performance of an audit? A. The managing partner of the firm. B. The senior assigned to the engagement. C. The manager assigned to the engagement. D. The partner in charge of the engagement. 15. What is the proper organizational role of internal auditing? A. To serve as an independent, objective assurance and consulting activity that adds value to operations. B. To assist the external auditor in order to reduce external audit fees. C. To perform studies to assist in the attainment of more efficient operations. D. To serve as the investigative arm of the audit committee of the board of directors. 16. Operational audits generally have been conducted by internal and COA auditors, but may be performed by certified public accountants. A primary purpose of an operational audit is to provide A. A measure of management performance in meeting organizational goals. B. The results of internal examinations of financial and accounting matters to a company’s top-level management. C. Aid to the independent auditor, who is conducting the examination of the financial statements. D. A means of assurance that internal accounting controls are functioning as planned. 17. Which of the following statements concerning consulting services is false? A. The performance of consulting services for audit clients does not, in and of itself, impair the auditor’s independence. B. Consulting services differ fundamentally from the CPA’s function of attesting to the assertions of other parties. C. Consulting services ordinarily involve external reporting. D. Most CPAs, including those who provide audit and tax services, also provide consulting services to their clients. 18. Internal auditors should review the means of physically safeguarding assets from losses arising from A. Exposure to the elements. B. Underusage of physical facilities. C. Misapplication of accounting principles. D. Procedures that are not cost justified.
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Page 4 19. Internal auditors review the adequacy of the company’s internal control system primarily to A. Help determine the nature, timing, and extent of tests necessary to achieve audit objectives. B. Determine whether the internal control system provides reasonable assurance that the company’s objectives and goals are met efficiently and economically. C. Ensure that material weaknesses in the system of internal control are corrected. D. Determine whether the internal control system ensures that financial statements are fairly presented. 20. Which of the following services, if any, may a practitioner who is not independent provide? A. Compilations but not reviews. B. Reviews but not compilations. C. Reviews but not financial statement audits. D. Agreed-upon procedures but not compilations.
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  • Summer '18
  • Jane
  • Financial audit

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