AUDITING AND ASSURANCE SERVICES 9TH
EDITION EXAM QUESTIONS AND SOLUTIONS
GRADED A+
◉ c. attestation engagement.
Answer: An audit is a specific type of:
a. assertion
b. explicit representation
c. attestation engagement
d. internal control
◉ - provides tax services for key company executives
- consults on "listed" transaction tax strategies
- accepts fees that are based on tax outcomes.
Answer: The PCAOB prohibits an accounting firm from providing
auditing services to a public company if the accounting firm:
- provides tax services for key company executives
- provides normal tax advice to the company
- consults on "listed" transaction tax strategies
- accepts fees that are based on tax outcomes
,◉ True.
Answer: True or False: Understanding management assertions is a
key component of planning an audit.
◉ - auditing and assurance services are the largest source of
revenue for most of the Big 4 accounting firms
- traditional financial statement audits are the most frequent
assurance engagement requested by most medium nonpublic
companies.
Answer: Which of the following statements are correct?
- The level of auditing activity provided increases as the size of the
public accounting firm decreases.
- Auditing and assurance services are the largest source of revenue
for most of the Big 4 accounting firms.
- Larger CPA firms usually provide more nonaudit and attestation
services for their clients than smaller firms.
- Traditional financial statement audits are the most frequent
assurance engagement requested y most medium nonpublic
companies.
◉ existence; occurence.
Answer: The assertions about the actuality of each balance sheet
and income statement balance is ___________, while ______________
asserts that each event and transaction actually happened.
, ◉ - management or human resource services
- financial information system design and implementation
- bookkeeping and related services
- appraisal or valuation services.
Answer: Services that public accounting firms are prohibited from
providing to audit clients under Sarbanes-Oxley include:
- management or human resource services
- financial information system design and implementation
- tax return preparation advice
- bookkeeping and related services
- appraisal or valuation services
◉ attestation engagement.
Answer: When a practitioner is engaged to issue a report on a
subject matter or an assertion about subject matter that is the
responsibility of another party is a(n): _________ _________
◉ c. provides tax services to key executives.
Answer: The PCAOB argues that auditor independence would be
impaired if the firm:
a. provides any type of tax advice to the company
b. prepares the company's corporate tax return
c. provides tax services to key executives
EDITION EXAM QUESTIONS AND SOLUTIONS
GRADED A+
◉ c. attestation engagement.
Answer: An audit is a specific type of:
a. assertion
b. explicit representation
c. attestation engagement
d. internal control
◉ - provides tax services for key company executives
- consults on "listed" transaction tax strategies
- accepts fees that are based on tax outcomes.
Answer: The PCAOB prohibits an accounting firm from providing
auditing services to a public company if the accounting firm:
- provides tax services for key company executives
- provides normal tax advice to the company
- consults on "listed" transaction tax strategies
- accepts fees that are based on tax outcomes
,◉ True.
Answer: True or False: Understanding management assertions is a
key component of planning an audit.
◉ - auditing and assurance services are the largest source of
revenue for most of the Big 4 accounting firms
- traditional financial statement audits are the most frequent
assurance engagement requested by most medium nonpublic
companies.
Answer: Which of the following statements are correct?
- The level of auditing activity provided increases as the size of the
public accounting firm decreases.
- Auditing and assurance services are the largest source of revenue
for most of the Big 4 accounting firms.
- Larger CPA firms usually provide more nonaudit and attestation
services for their clients than smaller firms.
- Traditional financial statement audits are the most frequent
assurance engagement requested y most medium nonpublic
companies.
◉ existence; occurence.
Answer: The assertions about the actuality of each balance sheet
and income statement balance is ___________, while ______________
asserts that each event and transaction actually happened.
, ◉ - management or human resource services
- financial information system design and implementation
- bookkeeping and related services
- appraisal or valuation services.
Answer: Services that public accounting firms are prohibited from
providing to audit clients under Sarbanes-Oxley include:
- management or human resource services
- financial information system design and implementation
- tax return preparation advice
- bookkeeping and related services
- appraisal or valuation services
◉ attestation engagement.
Answer: When a practitioner is engaged to issue a report on a
subject matter or an assertion about subject matter that is the
responsibility of another party is a(n): _________ _________
◉ c. provides tax services to key executives.
Answer: The PCAOB argues that auditor independence would be
impaired if the firm:
a. provides any type of tax advice to the company
b. prepares the company's corporate tax return
c. provides tax services to key executives
