ACC403 Midterm Exam 50 50Guarantee

Question: #976

PART I

Question 1

5 out of 5 points

The three requirements for becoming a CPA include all but which of the following?

Question 2

5 out of 5 points

In "auditing" financial accounting data, the primary concern is with:

Answer

Question 3

5 out of 5 points

Three common types of attestation services are:

Answer

Question 4

5 out of 5 points

________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

Answer

Question 5

5 out of 5 points

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

Answer

Question 6

5 out of 5 points

A correct relationship among the auditor, the client, and the external users is:

Answer
A. management of a public company hires the independent auditor.
B. the audit committee of a private company hires the independent auditor.
C. the client provides capital to the external users.
D. the external users can rely upon the auditor's report to reduce information risk.

Question 7

5 out of 5 points

Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

Answer

Question 8

5 out of 5 points

In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

Answer

Question 9

5 out of 5 points

Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

Answer

Question 10

5 out of 5 points

Which of the following are audit standards used in professional practice by audit firms?

Answer

Question 11

5 out of 5 points

The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:

Answer

Question 12

5 out of 5 points

For privately held companies who is responsible for establishing auditing standards?

Question 13

5 out of 5 points

When a qualified or adverse opinion is issued, the qualifying paragraph is inserted:

Answer

Question 14

5 out of 5 points

When there is uncertainty about a company's ability to continue as a going concern, the auditor's concern is the possibility that the client may not be able to continue its operations or meet its obligations for a "reasonable period of time." For this purpose, a reasonable period of time is considered not to exceed:

Answer

Question 15

5 out of 5 points

After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:

Answer

Question 16

5 out of 5 points

The audit report date on a standard unqualified report indicates:

Answer

Question 17

5 out of 5 points

A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:

Answer

Question 18

5 out of 5 points

If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

Answer

Question 19

5 out of 5 points

Which of the following represents all of the ways a CPA firm can be organized under Rule 505?

Answer

Question 20

5 out of 5 points

When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

Answer

Question 21

5 out of 5 points

The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a "direct financial interest" of the CPA?

Answer

Question 22

5 out of 5 points

Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client's consent as a result of a:

Answer

Question 23

5 out of 5 points

The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:

Answer

Question 24

5 out of 5 points

The members of a client's "audit committee" should be:

Answer

Question 25

5 out of 5 points

Which of the following services are allowed by the SEC whenever a CPA also audits the company?

Answer

MIDTERM part II

Question 1

5 out of 5 points

The laws that have been developed through court decisions are called:

Answer

Question 2

5 out of 5 points

Laws that have been passed by the U.S. Congress and other governmental units are:

Answer

Question 3

5 out of 5 points

The Foreign Corrupt Practices Act (FCPA) of 1977:

Answer

Question 4

5 out of 5 points

Which of the following most accurately describes fraud?

Answer

Question 5

0 out of 5 points

The expectation gap:

Answer

Often results in unwarranted lawsuits against the auditor

Question 6

5 out of 5 points

Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

Answer

Question 7

5 out of 5 points

In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

Answer

Question 8

5 out of 5 points

The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:

Answer

Question 9

5 out of 5 points

If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:

Answer

Question 10

5 out of 5 points

The essence of the attest function is to:

Answer

Question 11

5 out of 5 points

Management assertions are:

Answer

Question 12

5 out of 5 points

Tests of details of balances are specific audit procedures that are intended to:

Answer

Question 13

5 out of 5 points

Physical examination:

Answer

Question 14

5 out of 5 points

When practical and reasonable, U.S. auditing standards require the confirmation of:

Answer

Question 15

5 out of 5 points

When the auditor develops supporting evidence for amounts posted to account balances with documentary evidence, that process is called:

Answer

Question 16

5 out of 5 points

________ is the auditor's examination of the client's documents and records to substantiate that the information is included in the financial statements.

Answer

Question 17

5 out of 5 points

Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate?

Question 18

5 out of 5 points

The two characteristics of the appropriateness of evidence are:

Answer

Question 19

5 out of 5 points

An example of an external document that provides reliable information for the auditor is:

Answer

Question 20

5 out of 5 points

Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client's refusal to allow this communication to occur would impact Rodgers decision concerning:

Answer

Question 21

5 out of 5 points

Which of the following normally signs the engagement letter for an audit of a private company?

Answer

Question 22

5 out of 5 points

The purpose of an engagement letter is to:

Answer

Question 23

5 out of 5 points

A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is called:

Answer

Question 24

5 out of 5 points

In making client acceptance decisions, the audit firm will consider:

Answer

Question 25

5 out of 5 points

Related party:

Answer

Solution: #980

ACC403 Midterm Exam (50/50) Guarantee

PART I

Question 1

5 out of 5 points

The three requirements for becoming a CPA include all but which of the following?

Question 2

5 out of 5 points

In "auditing" financial accounting data, the primary concern is with:

Answer

Question 3

5 out of 5 points

Three common types of attestation services are:

Answer

Question 4

5 out of 5 points

________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

Answer

Question 5

5 out of 5 points

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

Answer

Question 6

5 out of 5 points

A correct relationship among the auditor, the client, and the external users is:

Answer