Auditing test 2 Chapter 2 Questions and Answers
Which of the following is least The auditors' objectivity and ability to act
related to the concept of impartially toward the client
independence in appearance?
The auditors' objectivity and ability to
act impartially toward the client
The perceptions of individuals who
rely on the financial statements and
auditors' opinion on the financial
statements
The ownership of a financial interest
in a client by the auditor
The employment of the auditor's
family member in an important
position with the client
,Which of the following is a true Public accounting firms must register with the
statement about the Public Company PCAOB before performing audits of public
Accounting Oversight Board companies.
(PCAOB):
Public accounting firms must register
with the PCAOB before performing
audits of public companies.
The PCAOB is a private, nonprofit
organization established in 1933.
Two of the five board members of
the PCAOB must be CPAs.
The PCAOB reports the results of
disciplinary proceedings to the SEC
to sanction registered CPA firms not
passing inspection.
,As specified in Title I of the The SEC
Sarbanes-Oxley Act of 2002, which
organization has oversight and
enforcement authority over the
Public Company Accounting Board
(PCAOB) and its decisions?
The AICPA
The SEC
The FASB
The Treasury Department
, The Sarbanes-Oxley Act of 2002 Mandates integrated audits for public companies
Requires the Public Company
Accounting Oversight Board
(PCAOB) be composed of seven
members.
Requires the Public Company
Accounting Oversight Board
(PCAOB) have CPAs for a majority of
its members.
Changes rules on auditor
independence, adopting a more
flexible, principles-based approach
rather than one based on
prohibitions of certain types of non-
audit services to audit clients
Mandates integrated audits for
public companies
Which of the following is least The auditors' objectivity and ability to act
related to the concept of impartially toward the client
independence in appearance?
The auditors' objectivity and ability to
act impartially toward the client
The perceptions of individuals who
rely on the financial statements and
auditors' opinion on the financial
statements
The ownership of a financial interest
in a client by the auditor
The employment of the auditor's
family member in an important
position with the client
,Which of the following is a true Public accounting firms must register with the
statement about the Public Company PCAOB before performing audits of public
Accounting Oversight Board companies.
(PCAOB):
Public accounting firms must register
with the PCAOB before performing
audits of public companies.
The PCAOB is a private, nonprofit
organization established in 1933.
Two of the five board members of
the PCAOB must be CPAs.
The PCAOB reports the results of
disciplinary proceedings to the SEC
to sanction registered CPA firms not
passing inspection.
,As specified in Title I of the The SEC
Sarbanes-Oxley Act of 2002, which
organization has oversight and
enforcement authority over the
Public Company Accounting Board
(PCAOB) and its decisions?
The AICPA
The SEC
The FASB
The Treasury Department
, The Sarbanes-Oxley Act of 2002 Mandates integrated audits for public companies
Requires the Public Company
Accounting Oversight Board
(PCAOB) be composed of seven
members.
Requires the Public Company
Accounting Oversight Board
(PCAOB) have CPAs for a majority of
its members.
Changes rules on auditor
independence, adopting a more
flexible, principles-based approach
rather than one based on
prohibitions of certain types of non-
audit services to audit clients
Mandates integrated audits for
public companies
