Test Bank
Community Health Nursing: A Canadian
Perspective 6th Edition – Dosani & Joseph
Practice Questions & Verified Answers
Auditing & Assurance Services – Practice Questions
Chapter 1: Introduction to Auditing
1. The primary objective of an external audit is to:
A. Detect all fraud
B. Provide absolute assurance
C. Express an opinion on financial statements
D. Prepare financial statements
Answer: C
2. Reasonable assurance means:
A. Absolute certainty
B. High but not perfect level of assurance
C. No assurance
D. Guarantee of accuracy
Answer: B
3. Auditors are responsible for:
A. Preparing financial statements
B. Expressing an opinion on statements
C. Managing company operations
D. Setting accounting standards
Answer: B
4. The management of a company is responsible for:
A. Auditing records
B. Financial statement preparation
C. Issuing audit opinion
D. External reporting only
Answer: B
, 5. An audit reduces information risk by:
A. Eliminating all errors
B. Increasing reliability of information
C. Preparing reports
D. Increasing profits
Answer: B
🧾 Chapter 2: Audit Standards & Regulation
6. PCAOB stands for:
A. Public Company Accounting Oversight Board
B. Private Company Audit Board
C. Public Corporate Audit Bureau
D. Professional Compliance Audit Body
Answer: A
7. International auditing standards are issued by:
A. IASB
B. IAASB
C. FASB
D. SEC
Answer: B
8. Auditing standards primarily guide:
A. Tax preparation
B. Audit performance and reporting
C. Marketing strategy
D. HR management
Answer: B
9. Independence in auditing means:
A. Working for management
B. Objectivity without bias
C. Increasing profits
D. Internal control design
Answer: B
10. The SEC regulates:
A. Private companies only
B. Publicly traded companies
C. Schools
Community Health Nursing: A Canadian
Perspective 6th Edition – Dosani & Joseph
Practice Questions & Verified Answers
Auditing & Assurance Services – Practice Questions
Chapter 1: Introduction to Auditing
1. The primary objective of an external audit is to:
A. Detect all fraud
B. Provide absolute assurance
C. Express an opinion on financial statements
D. Prepare financial statements
Answer: C
2. Reasonable assurance means:
A. Absolute certainty
B. High but not perfect level of assurance
C. No assurance
D. Guarantee of accuracy
Answer: B
3. Auditors are responsible for:
A. Preparing financial statements
B. Expressing an opinion on statements
C. Managing company operations
D. Setting accounting standards
Answer: B
4. The management of a company is responsible for:
A. Auditing records
B. Financial statement preparation
C. Issuing audit opinion
D. External reporting only
Answer: B
, 5. An audit reduces information risk by:
A. Eliminating all errors
B. Increasing reliability of information
C. Preparing reports
D. Increasing profits
Answer: B
🧾 Chapter 2: Audit Standards & Regulation
6. PCAOB stands for:
A. Public Company Accounting Oversight Board
B. Private Company Audit Board
C. Public Corporate Audit Bureau
D. Professional Compliance Audit Body
Answer: A
7. International auditing standards are issued by:
A. IASB
B. IAASB
C. FASB
D. SEC
Answer: B
8. Auditing standards primarily guide:
A. Tax preparation
B. Audit performance and reporting
C. Marketing strategy
D. HR management
Answer: B
9. Independence in auditing means:
A. Working for management
B. Objectivity without bias
C. Increasing profits
D. Internal control design
Answer: B
10. The SEC regulates:
A. Private companies only
B. Publicly traded companies
C. Schools
