Chapter
#hg02 #hgProfessional
#hgStandards
True / False Questions
1. Auditors may be independent in fact but not independent in appearance.
True False
2. Auditing Standards issued by the PCAOB are the sole source of guidance for audits
of public entities.
True False
3. Attestation standards provide guidance for a wide variety of engagements
different in scope than an audit.
True False
4. Generally accepted auditing standards must be followed on all audit
engagements.
True False
SCHOLARVAULT
,5. The #hgreporting #hgprinciple #hgrelates #hgto #hga #hgfirm's #hgsystem #hgof
#hgquality #hgcontrol #hgcriteria #hgfor # h g conducting #hgan #hgaudit.
True # h g False
6. Auditors #hgcannot #hgeffectively #hgsatisfy #hgthe #hgresponsibilities #hgprinciple
#hgrequiring #hgdue #hgcare #hgif # h g they #hghave #hgnot #hgalso #hgsatisfied #hgthe
#hgperformance #hgprinciple.
True # h g False
7. Substantive #hgprocedures #hgperformed #hgby #hgthe #hgaudit #hgteam #hgare
#hgmost #hgclosely #hgrelated #hgto # h g the #hgrisk #hgof #hgmaterial
#hgmisstatement.
True # h g False
8. Auditing #hgprocedures #hgare #hgthe #hgsame #hg as #hgauditing #hgstandards.
True # h g False
9. The #hgconcept #hgof #hgdue #hgcare #hgreflects #hgthe #hgneed #hgto #hgplan #hgand
#hgperform #hgthe #hgaudit #hgwith #hgan # h g appropriate #hglevel #hgof
#hgprofessional #hgskepticism.
True # h g False
SCHOLARVAULT
,10. Under #hgthe #hgperformance #hgprinciple, #hgauditors #hgare #hgrequired
#hgto #hgprovide #hgabsolute # h g assurance #hgthat #hgthe #hgclient's
#hgfinancial #hgstatements #hgdo #hgnot #hgcontain #hgmaterial
#hg misstatements.
True # h g False
11. The #hgperformance #hgprinciple #hgsets #hgforth #hgthe #hgquality #hgcriteria #hgfor #hgconducting
#hgan #hg audit.
True # h g False
12. Auditors #hgof #hgpublic #hgentities #hgregistered #hgwith #hgthe #hgSecurities #hgand
#hgExchange #hgCommission # h g are #hgrequired #hgto #hgregister #hgwith #hgthe
#hgPublic #hgCompany #hgAccounting #hgOversight #hgBoard.
True # h g False
13. Control #hgrisk #hgis #hgthe #hgprobability #hgthat #hga #hgmaterial #hgmisstatement
#hg(error #hgor #hgfraud) #hgcould # h g occur #hgand #hgnot #hgbe #hgprevented
#hgor #hgdetected #hgon #hga #hgtimely #hgbasis #hgby #hgthe #hgauditors'
#hg substantive #hgprocedures.
True # h g False
14. The #hgword #hgappropriateness #hgrefers #hgto #hgthe #hgnumber #hgof
#hgtransactions #hgor #hgcomponents #hgof # h g an #hgaccount #hgbalance
#hgexamined #hgby #hgauditors.
True # h g False
SCHOLARVAULT
, 15. To #hgbe #hgconsidered #hgmaterial, #hgan #hgitem #hgmust #hgbe #hgone #hgthat
#hgwould #hginfluence #hgthe #hgdecision # h g of #hgfinancial #hgstatement #hgusers.
True # h g False
16. The #hgcontents #hgof #hgthe #hgauditors' #hgreport #hgare #hgguided #hgby #hgthe
#hgperformance #hgprinciple #hgof # h g GAAS.
True # h g False
17. An #hgunqualified #hgopinion #hgindicates #hgthat #hgthe #hgfinancial #hgstatements
#hgpresent #hgthe #hgentity's # h g financial #hgcondition, #hgresults #hgof
#hgoperations, #hgand #hgcash #hgflows #hgin #hgconformity #hgwith #hgGAAP.
True # h g False
18. The #hgauditors' #hgreport #hgshould #hgeither #hgcontain #hgan #hgexpression #hgof
#hgopinion #hgon #hgthe #hgfinancial # h g statements #hgtaken #hgas #hga #hgwhole
#hgor #hgan #hgassertion #hgto #hgthe #hgeffect #hgthat #hgan #hgopinion #hgcannot #hgbe
#hg expressed.
True # h g False
19. Evidence #hgis #hg considered #hgappropriate #hg when #hgit #hg is #hgboth #hgvalid #hgand #hgrelevant.
True # h g False
SCHOLARVAULT
#hg02 #hgProfessional
#hgStandards
True / False Questions
1. Auditors may be independent in fact but not independent in appearance.
True False
2. Auditing Standards issued by the PCAOB are the sole source of guidance for audits
of public entities.
True False
3. Attestation standards provide guidance for a wide variety of engagements
different in scope than an audit.
True False
4. Generally accepted auditing standards must be followed on all audit
engagements.
True False
SCHOLARVAULT
,5. The #hgreporting #hgprinciple #hgrelates #hgto #hga #hgfirm's #hgsystem #hgof
#hgquality #hgcontrol #hgcriteria #hgfor # h g conducting #hgan #hgaudit.
True # h g False
6. Auditors #hgcannot #hgeffectively #hgsatisfy #hgthe #hgresponsibilities #hgprinciple
#hgrequiring #hgdue #hgcare #hgif # h g they #hghave #hgnot #hgalso #hgsatisfied #hgthe
#hgperformance #hgprinciple.
True # h g False
7. Substantive #hgprocedures #hgperformed #hgby #hgthe #hgaudit #hgteam #hgare
#hgmost #hgclosely #hgrelated #hgto # h g the #hgrisk #hgof #hgmaterial
#hgmisstatement.
True # h g False
8. Auditing #hgprocedures #hgare #hgthe #hgsame #hg as #hgauditing #hgstandards.
True # h g False
9. The #hgconcept #hgof #hgdue #hgcare #hgreflects #hgthe #hgneed #hgto #hgplan #hgand
#hgperform #hgthe #hgaudit #hgwith #hgan # h g appropriate #hglevel #hgof
#hgprofessional #hgskepticism.
True # h g False
SCHOLARVAULT
,10. Under #hgthe #hgperformance #hgprinciple, #hgauditors #hgare #hgrequired
#hgto #hgprovide #hgabsolute # h g assurance #hgthat #hgthe #hgclient's
#hgfinancial #hgstatements #hgdo #hgnot #hgcontain #hgmaterial
#hg misstatements.
True # h g False
11. The #hgperformance #hgprinciple #hgsets #hgforth #hgthe #hgquality #hgcriteria #hgfor #hgconducting
#hgan #hg audit.
True # h g False
12. Auditors #hgof #hgpublic #hgentities #hgregistered #hgwith #hgthe #hgSecurities #hgand
#hgExchange #hgCommission # h g are #hgrequired #hgto #hgregister #hgwith #hgthe
#hgPublic #hgCompany #hgAccounting #hgOversight #hgBoard.
True # h g False
13. Control #hgrisk #hgis #hgthe #hgprobability #hgthat #hga #hgmaterial #hgmisstatement
#hg(error #hgor #hgfraud) #hgcould # h g occur #hgand #hgnot #hgbe #hgprevented
#hgor #hgdetected #hgon #hga #hgtimely #hgbasis #hgby #hgthe #hgauditors'
#hg substantive #hgprocedures.
True # h g False
14. The #hgword #hgappropriateness #hgrefers #hgto #hgthe #hgnumber #hgof
#hgtransactions #hgor #hgcomponents #hgof # h g an #hgaccount #hgbalance
#hgexamined #hgby #hgauditors.
True # h g False
SCHOLARVAULT
, 15. To #hgbe #hgconsidered #hgmaterial, #hgan #hgitem #hgmust #hgbe #hgone #hgthat
#hgwould #hginfluence #hgthe #hgdecision # h g of #hgfinancial #hgstatement #hgusers.
True # h g False
16. The #hgcontents #hgof #hgthe #hgauditors' #hgreport #hgare #hgguided #hgby #hgthe
#hgperformance #hgprinciple #hgof # h g GAAS.
True # h g False
17. An #hgunqualified #hgopinion #hgindicates #hgthat #hgthe #hgfinancial #hgstatements
#hgpresent #hgthe #hgentity's # h g financial #hgcondition, #hgresults #hgof
#hgoperations, #hgand #hgcash #hgflows #hgin #hgconformity #hgwith #hgGAAP.
True # h g False
18. The #hgauditors' #hgreport #hgshould #hgeither #hgcontain #hgan #hgexpression #hgof
#hgopinion #hgon #hgthe #hgfinancial # h g statements #hgtaken #hgas #hga #hgwhole
#hgor #hgan #hgassertion #hgto #hgthe #hgeffect #hgthat #hgan #hgopinion #hgcannot #hgbe
#hg expressed.
True # h g False
19. Evidence #hgis #hg considered #hgappropriate #hg when #hgit #hg is #hgboth #hgvalid #hgand #hgrelevant.
True # h g False
SCHOLARVAULT
