Auditing D215 Practice Test – Questions With
Proper Solutions
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Terms in this set (344)
Identify a service that falls under audit a) Examination of historical financial statements
services.
a) Examination of historical financial
statements
b) Review of financial forecast
c) Compilation of historical financial
statements
d) Inspection of website security
Examination of internal controls is a d) attestation; assurance
service that comes under services,
which fall under services.
a) acceptable; assurance
b) assurance; attestation
c) attestation; audit
d) attestation; assurance
Within a U.S. context, the applicable a) Generally Accepted Accounting Principles (GAAP)
financial reporting framework is
typically :
a) Generally Accepted Accounting
Principles (GAAP)
b) Financial Accounting Standards
Board (FASB)
c) International Auditing and
Assurance Standards Board (IAASB)
d) American Accounting Association
(AAA)
,Which two audits does an integrated c) A financial statement audit and an audit of the
audit combine? effectiveness of Internal Control Over Financial
Reporting (ICFR)
a) A performance audit and an
environmental audit
b) A compliance audit and an audit of
the effectiveness of Internal Control
Over Financial Reporting (ICFR)
c) A financial statement audit and an
audit of the effectiveness of Internal
Control Over Financial Reporting
(ICFR)
d) A financial statement audit and a
compliance audit
Who among the following users of the d) government
financial statement of a company may
be particularly interested in evaluating
whether the
company is paying a fair amount of
taxes given its reported earnings, and
to gain a better understanding of the
company's activities?
a) customers
b) employees
c) general pubic
d) government
Since users of financial statements b) reliability
make financial decisions that have real
consequences, it is very important that
users can depend on
the information contained in the
financial statements. What term
captures this problem?
a) competing incentives
b) reliability
c) complexity
d) remoteness
,Which of the following falls within the c) Changes in equity
purview of a financial statement
preparer?
a) Independent audit
b) Mergers and acquisitions
c) Changes in equity
d) Business valuation
Management is responsible for which d) Designing, implementing, and maintaining internal
of the following? control relevant to the preparation of the financial
statements.
a) Preparing financial statements
which will please the board of
directors and investors.
b) Issuing an opinion on whether the
financial statements are presented
fairly in accordance with the
appropriate financial reporting
framework.
c) Preparing financial statements in
accordance with the appropriate
auditing standards.
d) Designing, implementing, and
maintaining internal control relevant
to the preparation of the financial
statements.
Which of the following comes under b) Auditing Standards (AS)
the purview of the Public Company
Accounting Oversight Board?
a) Statements on Auditing Standards
(SAS)
b) Auditing Standards (AS)
c) Statements on Standards for
Attestation Engagement (SSAE)
d) Statements on Quality Control
Standards (SQCS)
, Which of the following is a private a) AICPA
professional membership organization
of CPAs representing the accounting
profession?
a) AICPA
b) ASB
c) PCAOB
d) IAASB
Which statement is correct as to d) There is a standard report for the audit of public
financial statement audit reports for company financial statements and a standard report
public versus private companies? for the audit of private company financial statements.
a) There is a standard report for the
audit of private company financial
statements but none for auditing
public company financial statements
b) There is no distinction between
standard reports for the audit of
financial statements, regardless of
whether the company is private or
public.
c) There is a standard report for the
audit of public company financial
statements but none for auditing
private company financial statements.
d) There is a standard report for the
audit of public company financial
statements and a standard report for
the audit of private company financial
statements.
Proper Solutions
Save
Terms in this set (344)
Identify a service that falls under audit a) Examination of historical financial statements
services.
a) Examination of historical financial
statements
b) Review of financial forecast
c) Compilation of historical financial
statements
d) Inspection of website security
Examination of internal controls is a d) attestation; assurance
service that comes under services,
which fall under services.
a) acceptable; assurance
b) assurance; attestation
c) attestation; audit
d) attestation; assurance
Within a U.S. context, the applicable a) Generally Accepted Accounting Principles (GAAP)
financial reporting framework is
typically :
a) Generally Accepted Accounting
Principles (GAAP)
b) Financial Accounting Standards
Board (FASB)
c) International Auditing and
Assurance Standards Board (IAASB)
d) American Accounting Association
(AAA)
,Which two audits does an integrated c) A financial statement audit and an audit of the
audit combine? effectiveness of Internal Control Over Financial
Reporting (ICFR)
a) A performance audit and an
environmental audit
b) A compliance audit and an audit of
the effectiveness of Internal Control
Over Financial Reporting (ICFR)
c) A financial statement audit and an
audit of the effectiveness of Internal
Control Over Financial Reporting
(ICFR)
d) A financial statement audit and a
compliance audit
Who among the following users of the d) government
financial statement of a company may
be particularly interested in evaluating
whether the
company is paying a fair amount of
taxes given its reported earnings, and
to gain a better understanding of the
company's activities?
a) customers
b) employees
c) general pubic
d) government
Since users of financial statements b) reliability
make financial decisions that have real
consequences, it is very important that
users can depend on
the information contained in the
financial statements. What term
captures this problem?
a) competing incentives
b) reliability
c) complexity
d) remoteness
,Which of the following falls within the c) Changes in equity
purview of a financial statement
preparer?
a) Independent audit
b) Mergers and acquisitions
c) Changes in equity
d) Business valuation
Management is responsible for which d) Designing, implementing, and maintaining internal
of the following? control relevant to the preparation of the financial
statements.
a) Preparing financial statements
which will please the board of
directors and investors.
b) Issuing an opinion on whether the
financial statements are presented
fairly in accordance with the
appropriate financial reporting
framework.
c) Preparing financial statements in
accordance with the appropriate
auditing standards.
d) Designing, implementing, and
maintaining internal control relevant
to the preparation of the financial
statements.
Which of the following comes under b) Auditing Standards (AS)
the purview of the Public Company
Accounting Oversight Board?
a) Statements on Auditing Standards
(SAS)
b) Auditing Standards (AS)
c) Statements on Standards for
Attestation Engagement (SSAE)
d) Statements on Quality Control
Standards (SQCS)
, Which of the following is a private a) AICPA
professional membership organization
of CPAs representing the accounting
profession?
a) AICPA
b) ASB
c) PCAOB
d) IAASB
Which statement is correct as to d) There is a standard report for the audit of public
financial statement audit reports for company financial statements and a standard report
public versus private companies? for the audit of private company financial statements.
a) There is a standard report for the
audit of private company financial
statements but none for auditing
public company financial statements
b) There is no distinction between
standard reports for the audit of
financial statements, regardless of
whether the company is private or
public.
c) There is a standard report for the
audit of public company financial
statements but none for auditing
private company financial statements.
d) There is a standard report for the
audit of public company financial
statements and a standard report for
the audit of private company financial
statements.
