ACCT 3222-3, WILEY, LSU EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
2025/2026
Those charged with governance - ANSWER -> Persons with responsibility
for overseeing the strategic direction of the entity and the obligations related to
the accountability of the entity
The external auditor may rely on the work done by - ANSWER -> Internal
auditors when evaluating the evidence needed to form an opinion on the financial
statements or on ICFR
Financial Statement Users include - ANSWER -> Investors, suppliers,
customers, lenders, employees, governments, and the general public
Sources of demand for audit and assurance services - ANSWER -
> Remoteness (users do not have access to the company)
Complexity (amounts affected by significant estimates requiring knowledge and
experience to evaluate)
Competing incentives (determine biased information)
Reliability
Management is responsible for - ANSWER -> 1. Ensuring the information
included in the financial statements is presented fairly and complies with the
applicable financial reporting frameowrk
2. Designing, implementing, and maintaining internal control relevant to the
preparation and fair presentation of the financial statements
,3. Providing the auditor with access to all records, documentation, and
personnel relevant to the preparation and fair presentation of the financial
statements, and any additional information the auditors may consider relevant to
complete the audit
Also, mgmt is responsible for making estimates for some f/s items and selecting
appropriate accounting policies within the applicable financial reporting
framework
Auditors are responsible for - ANSWER -> 1. Conducting the audit in
accordance with the appropriate auditing standards
2. Planning and performing the audit with professional skepticism
3. Planning and performing the audit with professional judgment
Professional Skepticism - ANSWER -> An attitude that includes a
questioning mind, being alert to conditions that may indicate possible
misstatement due to fraud or error, and a critical assessment of audit evidence
Professional judgment - ANSWER -> The application of relevant training,
knowledge, and experience in making informed decisions about the courses of
action that are appropriate in the circumstances of the audit engagement
PCAOB - ANSWER -> Public Company Accounting Oversight Board
Oversees the audits of public companies
PCAOB is a - ANSWER -> non-profit corporation established through the
SOX legislation in 2002.
,Auditing Standards - ANSWER -> (AS)
Standards issued by the PCAOB which provide minimum requirements and
guidance for auditing services
AICPA is - ANSWER -> American Institute of Certified Public Accountants
A private professional membership organization of CPAs representing the
accounting profession
Also, responsible for creating and grading the Uniform CPA exam
Auditing Standards Board - ANSWER -> (ASB) a standing committee of
AICPA Issues audit standards for the audits of private companies and not-for-
profit organizations since 2003 SOX (before SOX included public companies)
Statements on Auditing Standards - ANSWER -> (SAS) are standards
issued by the ASB (Auditing Standards Board)
GAAS - ANSWER -> Generally Accepted Auditing Standards is developed
by ASB to make sure company followed GAAP
Purpose of an audit - ANSWER -> Provide an opinion by the auditor on
whether the F/S are presented fairly, in all material respects, in accordance with
the applicable financial reporting framework (GAAP)
Premise Upon Which an Audit Is Conducted - ANSWER -> (Mgmt's
responsibilities) Mgmt have responsibility:
a. Prep and fair presentation of the F/S in accordance with applicable financial
reporting framework including design, implementation, and maintenance of IC b.
to provide the auditor with access to all docs and client personnel
, Responsibilities of the Auditor - ANSWER -> Competence and capabilities
to perform the audit - technical training, CPA exam, CPE
Ethical requirements - independence
Professional skepticism - maintain questioning attitude
Professional judgment - uncertainty/subjectivity
To obtain reasonable assurance - ANSWER -> Auditor must: Plan the work,
supervise any assistants
Determine and apply appropriate materiality level, or levels, throughout the audit
Assesses risks including IC
Obtains sufficient appropriate audit evidence
Inherent limitations of an Audit - ANSWER -> Nature of financial reporting
(complex)
Nature of audit procedures (sampling; audit data analytics (ADA))
Time & Cost constraints
Reporting the results of an audit - ANSWER -> Based on an evaluation of
audit evidence, auditor expresses in form of a written report an opinion in
accordance with findings or states that an opinion cannot be expressed
ASB also issues - ANSWER -> Statements on Standards for Attestation
Engagements
(SSAE)
Statements on Quality Control Standards (SQCS)
AICPA is the _________ Committee - ANSWER -> Accounting and Review
Services Committee
COMPLETE SOLUTIONS GUARANTEED PASS
2025/2026
Those charged with governance - ANSWER -> Persons with responsibility
for overseeing the strategic direction of the entity and the obligations related to
the accountability of the entity
The external auditor may rely on the work done by - ANSWER -> Internal
auditors when evaluating the evidence needed to form an opinion on the financial
statements or on ICFR
Financial Statement Users include - ANSWER -> Investors, suppliers,
customers, lenders, employees, governments, and the general public
Sources of demand for audit and assurance services - ANSWER -
> Remoteness (users do not have access to the company)
Complexity (amounts affected by significant estimates requiring knowledge and
experience to evaluate)
Competing incentives (determine biased information)
Reliability
Management is responsible for - ANSWER -> 1. Ensuring the information
included in the financial statements is presented fairly and complies with the
applicable financial reporting frameowrk
2. Designing, implementing, and maintaining internal control relevant to the
preparation and fair presentation of the financial statements
,3. Providing the auditor with access to all records, documentation, and
personnel relevant to the preparation and fair presentation of the financial
statements, and any additional information the auditors may consider relevant to
complete the audit
Also, mgmt is responsible for making estimates for some f/s items and selecting
appropriate accounting policies within the applicable financial reporting
framework
Auditors are responsible for - ANSWER -> 1. Conducting the audit in
accordance with the appropriate auditing standards
2. Planning and performing the audit with professional skepticism
3. Planning and performing the audit with professional judgment
Professional Skepticism - ANSWER -> An attitude that includes a
questioning mind, being alert to conditions that may indicate possible
misstatement due to fraud or error, and a critical assessment of audit evidence
Professional judgment - ANSWER -> The application of relevant training,
knowledge, and experience in making informed decisions about the courses of
action that are appropriate in the circumstances of the audit engagement
PCAOB - ANSWER -> Public Company Accounting Oversight Board
Oversees the audits of public companies
PCAOB is a - ANSWER -> non-profit corporation established through the
SOX legislation in 2002.
,Auditing Standards - ANSWER -> (AS)
Standards issued by the PCAOB which provide minimum requirements and
guidance for auditing services
AICPA is - ANSWER -> American Institute of Certified Public Accountants
A private professional membership organization of CPAs representing the
accounting profession
Also, responsible for creating and grading the Uniform CPA exam
Auditing Standards Board - ANSWER -> (ASB) a standing committee of
AICPA Issues audit standards for the audits of private companies and not-for-
profit organizations since 2003 SOX (before SOX included public companies)
Statements on Auditing Standards - ANSWER -> (SAS) are standards
issued by the ASB (Auditing Standards Board)
GAAS - ANSWER -> Generally Accepted Auditing Standards is developed
by ASB to make sure company followed GAAP
Purpose of an audit - ANSWER -> Provide an opinion by the auditor on
whether the F/S are presented fairly, in all material respects, in accordance with
the applicable financial reporting framework (GAAP)
Premise Upon Which an Audit Is Conducted - ANSWER -> (Mgmt's
responsibilities) Mgmt have responsibility:
a. Prep and fair presentation of the F/S in accordance with applicable financial
reporting framework including design, implementation, and maintenance of IC b.
to provide the auditor with access to all docs and client personnel
, Responsibilities of the Auditor - ANSWER -> Competence and capabilities
to perform the audit - technical training, CPA exam, CPE
Ethical requirements - independence
Professional skepticism - maintain questioning attitude
Professional judgment - uncertainty/subjectivity
To obtain reasonable assurance - ANSWER -> Auditor must: Plan the work,
supervise any assistants
Determine and apply appropriate materiality level, or levels, throughout the audit
Assesses risks including IC
Obtains sufficient appropriate audit evidence
Inherent limitations of an Audit - ANSWER -> Nature of financial reporting
(complex)
Nature of audit procedures (sampling; audit data analytics (ADA))
Time & Cost constraints
Reporting the results of an audit - ANSWER -> Based on an evaluation of
audit evidence, auditor expresses in form of a written report an opinion in
accordance with findings or states that an opinion cannot be expressed
ASB also issues - ANSWER -> Statements on Standards for Attestation
Engagements
(SSAE)
Statements on Quality Control Standards (SQCS)
AICPA is the _________ Committee - ANSWER -> Accounting and Review
Services Committee
