ACCT 4301 FINAL EXAM TTU STUDY QUESTIONS AND CORRECT ANSWERS

The Public Company Accounting Oversight Board [PCAOB] derives its authority to set and enforce auditing standards for public company audits from A The American Institute of Certified Public Accountants [AICPA]. B The Securities and Exchange Commission [SEC]. C An Act of Congress. D A Presidential executive order. C An Act of Congress Which of the following is generally not considered one of the five business processes or cycles? A Information technology. B Revenue [or sales]. C Financing. D Inventory management. A Information Technology Which of the following is NOT a typical responsibility for an associate/staff level auditor? A Assisting in the development of the audit plan. B Performing the audit procedures assigned to them. C Preparing adequate and appropriate documentation of completed work. D Informing the senior about any auditing or accounting problems encountered. A Assisting in the development of the audit plan. Prior to the Sarbanes-Oxley Act of 2002, the ______was responsible for creating all new auditing standards in the United States. Today, for publicly held companies, that responsibility rests with the ______. A Financial Accounting Standards Board [FASB]; Public Company Accounting Oversight Board [PCAOB]. B AICPA Auditing Standards Board [ASB]; Securities and Exchange Commission [SEC]. C AICPA Auditing Standards Board [ASB]; Public Company Accounting Oversight Board [PCAOB]. D Financial Accounting Standards Board [FASB]; Securities and Exchange Commission [SEC]. C AICPA Auditing Standards Board [ASB]; Public Company Accounting Oversight Board [PCAOB]. To exercise due professional care, an auditor should A Attain the proper balance of professional experience and formal education. B Exercise professional skepticism. C Examine all available corroborating evidence supporting management's assertions. D Design the audit to detect all instances of illegal acts. B Exercise professional skepticism.