ACG 445 Final Exam Questions with Correct Answers Latest Update 2025

ACG 445 Final Exam Questions with Correct Answers Latest Update 2025 low-balling - Answers deliberately underbidding for an audit engagement to obtain a client and secure more lucrative management advisory or consulting services competence and diligence - Answers one of the rules of professional conduct and repeated in GAAS, due care, requires a member to discharge professional responsibilities with what? expectations gap - Answers the difference between what the public expects an audit to uncover and what the profession believes is the purpose of an audit modified opinion with a qualification - Answers the inability to gather any sufficient relevant info to form the basis for an opinion would lead to what issuance of opinion? disclaim opinion - Answers the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion withdraw from an engagement - Answers when the auditor concludes that management cannot be trusted PCAOB audit standards - Answers the required standards apply to all public companies only general standards of GAAS - Answers the standards that guide auditors in issuing the audit report field work standards of GAAS - Answers criteria for judging the quality of audit work limits the usefulness of audit reports - Answers auditors do not examine all transactions, language in the audit report relies on subjective evaluations such as what is meant by "reasonable", transactions examined are based on materiality and risk assessment determinations FS present fairly - Answers whether the auditor has been able to gather sufficient evidence to warrant the statement that the FS presents fairly auditors responsibility is greatest - Answers the illegal acts have a direct and material effect on FS amounts first step for an auditor when an illegal act exists - Answers assess the impact of it on the FS withdraw from an engagement when an illegal act exists - Answers auditor is precluded from obtaining sufficient competent evidence about the illegal act Private Securities Litigation Reform Act requirements - Answers the illegal act has a material effect on the FS, senior management and the BOD have not acted properly to correct for the act, and the failure to correct for the action is reasonably expected to warrant a departure from the standard audit report material - Answers auditors are responsible to detect and correct errors when they are what? auditors responsibility to communicate fraud findings - Answers communicate to the audit committee the existence of fraud but not the amount involved fraud triangle - Answers incentives, opportunity, rationalization difference between errors and fraud - Answers fraud is always an intentional act designed to deceive another party misappropriation of assets - Answers the deliberate use of company assets for personal