1. The need for assurance services arises because the interests of the users of information
may be different from that of the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Demand for Assurances
2. A financial statement audit is a systematic process of objectively obtaining and
evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
3. Auditors should conduct their work with an attitude of professional skepticism.
a. True
b. False
ANSWER: True
POINTS: 1
,NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
4. A bank using Milton Company's financial statements to determine the creditworthiness
of a potential loan to Milton is a good example of the need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
6. In all states, a CPA must have completed at least 150 hours of college semester hours
to receive their license.
, a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
7. The Center for Audit Quality was started by the International Federation of
Accountants.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
8. The Center for Audit Quality has the primary authority to set auditing standards.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
, STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
9. In an audit, management is considered the “client”.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
10. Auditing is the process of attesting to assertions about economic actions and events.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
11. Auditing is the process of verifying the accuracy of the financial statements.
a. True
b. False
may be different from that of the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Demand for Assurances
2. A financial statement audit is a systematic process of objectively obtaining and
evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
3. Auditors should conduct their work with an attitude of professional skepticism.
a. True
b. False
ANSWER: True
POINTS: 1
,NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
4. A bank using Milton Company's financial statements to determine the creditworthiness
of a potential loan to Milton is a good example of the need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
6. In all states, a CPA must have completed at least 150 hours of college semester hours
to receive their license.
, a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
7. The Center for Audit Quality was started by the International Federation of
Accountants.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
8. The Center for Audit Quality has the primary authority to set auditing standards.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
, STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
9. In an audit, management is considered the “client”.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
10. Auditing is the process of attesting to assertions about economic actions and events.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
11. Auditing is the process of verifying the accuracy of the financial statements.
a. True
b. False
