AUDITING AND ASSURANCE SERVICES 9TH
EDITION EXAMINATION TEST COMPLETE
QUESTIONS AND ANSWERS
◉ - has more task-based activities
- has an increased emphasis on critical thinking.
Answer: The new CPA exam:
- is now 14 hours instead of 16
- has more task-based activities
- has an increased emphasis on critical thinking
◉ - review internal control systems to ensure compliance with
company policies
- review the effectiveness of achieving results compared to
established objectives
- perform audits of financial reports for limited external
distributions.
Answer: Internal auditors:
- review internal control systems to ensure compliance with
company policies
- review the effectiveness of achieving results compared to
established objectives
,- perform audits of financial reports for limited external distribution
- examine evidence and issue an opinion on the fairness of financial
statements
◉ - internal audit outsourcing
- investment services
- legal and expert services
- actuarial services.
Answer: Services that public accounting firms are prohibited from
providing to audit clients under Sarbanes-Oxley include:
- internal audit outsourcing
- corporate tax return preparation advice
- investment services
- legal and expert services
- actuarial services
◉ False.
Answer: True or False: When considering established criteria for
effective communication, external auditors rely on financial and
managerial models of efficiency and effectiveness.
◉ a. assurance services involve lending credibility to both financial
and nonfinancial information
, c. Financial statement auditing is the dominant assurance service
provided by CPA firms.
Answer: Which of the following statements are correct?
a. assurance services involve lending credibility to both financial and
nonfinancial information
b. CPAs who provide auditing services are prohibited from providing
other types of assurance services
c. Financial statement auditing is the dominant assurance service
provided by CPA firms
d. The AICPA does not support non-auditing assurance services
◉ context.
Answer: For assurance services, improving the quality or __________ of
information refers not to the information itself, but to how the
information is used in decision making.
◉ d. information.
Answer: The probability that data circulated by a company will be
false or misleading is __________ risk.
a. reliability
b. business
c. consequence
d. information
EDITION EXAMINATION TEST COMPLETE
QUESTIONS AND ANSWERS
◉ - has more task-based activities
- has an increased emphasis on critical thinking.
Answer: The new CPA exam:
- is now 14 hours instead of 16
- has more task-based activities
- has an increased emphasis on critical thinking
◉ - review internal control systems to ensure compliance with
company policies
- review the effectiveness of achieving results compared to
established objectives
- perform audits of financial reports for limited external
distributions.
Answer: Internal auditors:
- review internal control systems to ensure compliance with
company policies
- review the effectiveness of achieving results compared to
established objectives
,- perform audits of financial reports for limited external distribution
- examine evidence and issue an opinion on the fairness of financial
statements
◉ - internal audit outsourcing
- investment services
- legal and expert services
- actuarial services.
Answer: Services that public accounting firms are prohibited from
providing to audit clients under Sarbanes-Oxley include:
- internal audit outsourcing
- corporate tax return preparation advice
- investment services
- legal and expert services
- actuarial services
◉ False.
Answer: True or False: When considering established criteria for
effective communication, external auditors rely on financial and
managerial models of efficiency and effectiveness.
◉ a. assurance services involve lending credibility to both financial
and nonfinancial information
, c. Financial statement auditing is the dominant assurance service
provided by CPA firms.
Answer: Which of the following statements are correct?
a. assurance services involve lending credibility to both financial and
nonfinancial information
b. CPAs who provide auditing services are prohibited from providing
other types of assurance services
c. Financial statement auditing is the dominant assurance service
provided by CPA firms
d. The AICPA does not support non-auditing assurance services
◉ context.
Answer: For assurance services, improving the quality or __________ of
information refers not to the information itself, but to how the
information is used in decision making.
◉ d. information.
Answer: The probability that data circulated by a company will be
false or misleading is __________ risk.
a. reliability
b. business
c. consequence
d. information
