Wiley Exam Questions with 100% Correct Answers 2024

Wiley Exam Questions with 100% Correct Answers 2024 Which of the following is not a primary responsibility of an auditor: - answerProvide management with an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. The phrase "generally accepted accounting principles" is an accounting term that - answerEncompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. The auditor's judgment concerning the overall fairness of the presentation of financial position - answerresults of operations, and statement of cash flows is applied within the framework of,Generally accepted accounting principles Which of the following is most likely to be unique to the audit work of CPAs as compared to work performed by practitioners of other professions? - answerIndependence. Principles Underlying an Audit Conducted in Accordance with GAAS state that sufficient appropriate audit evidence is to be obtained through designing and implementing appropriate responses i.e. by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit. The substantive evidential matter required by this standard may be obtained in part through - answerAnalytical procedures. The audit work performed by each assistant should be reviewed to determine whether it was adequately performed and to evaluate whether the - answerResults are consistent with the conclusions to be presented in the auditor's report. The auditor faces a risk that the examination will not detect material misstatements which occur in the accounting process. In regard to minimizing this risk - answerthe auditor primarily relies on,Substantive tests. An attestation engagement is one in which a CPA is engaged to - answerIssue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party. An entity engaged a CPA to determine whether the client's web sites meet defined criteria for standard business practices and controls over transaction integrity and information protection.In performing this engagement the CPA should comply with the provisions of - answerStatements on Standards for Attestation Engagements. In performing an attestation engagement a CPA typically - answerExpresses a conclusion about the assertion on the subject matter. Which of the following professional services would be considered an attest engagement? - answerAn engagement to report on compliance with statutory requirements. According to GAAS which of the following terms identifies a requirement for audit evidence? - answerAppropriate. An independent auditor must have which of the following? - answerTechnical training that is adequate to meet the requirements of a professional. The exercise of due professional care requires that an auditor - answerCritically review the judgment exercised at every level of supervision. The GAAS requirement states that due care is to be exercised in the performance of an audit is ordinarily interpreted to require - answerCritical review of the judgment exercised at every level of supervision. Which of the following underlies the application of generally accepted auditing standards particularly the standards for obtaining sufficient appropriate audit evidence? - answerThe elements of materiality and audit risk. The independent auditor's plan for an examination in accordance with generally accepted auditing standards is influenced by the possibility of material misstatements. The auditor will therefore conduct the examination with an attitude of - answerProfessional skepticism. Generally accepted auditing standards are - answerPronouncements issued by the Auditing Standards Board. Which of the following best describes what is meant by the term generally accepted auditing standards? - answerPronouncements issued by the Auditing Standards Board. As guidance for measuring the quality of the performance of an auditor - answerthe auditor should refer to,Generally accepted auditing standards. In AICPA professional standards the word should indicates an (a) - answerPresumptively mandatory requirement from which the CPA may depart in rare circumstances. Interpretive publications include all of the following except for, - answerArticles in the AICPA's Journal of Accountancy. Which of the following has the lowest authoritative status but may be useful in assisting the auditor in applying the SASs? - answerJournal of Accountancy articles. The Sarbanes‐Oxley Act of 2002 imposes a mandatory rotation applicable to both the audit engagement partner and the quality control (also called review) partner. How long in total is the partner allowed to serve as the engagement partner or review partner before someone else must serve in that capacity? - answer5 years. Under the Sarbanes‐Oxley Act of 2002, which of the following is not a stated responsibility of the Public Company Accounting Oversight Board? - answerIssuing accounting standards that must be followed by issuers in financial reporting. Which of the following is least likely to be directly examined in an inspection performed by the PCAOB? - answerCompilation engagements. Which of the following are issued by the Securities and Exchange Commission? - answerFinancial Reporting Releases. A person identified as an audit committee financial expert of an issuer generally must have acquired the attributes of a financial expert through any of the following experiences except, - answerServing on at least one other issuer's audit committee or disclosure committee of the board of directors. The organization charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public is the: - answerSecurities and Exchange Commission. Section 404 of the Sarbanes‐Oxley Act of 2002 requires each annual report of an issuer to include which of the following? - answerManagement's assessment of the effectiveness of internal control over financial reporting. Which of the following is correct concerning PCAOB inspections? - answerInspections may include consideration of aspects of practice management, such as how partner compensation is determined. The Public Company Accounting Oversight Board (PCAOB) has authority to establish which of the following relating to public companies? - answerAttestation Standards Yes Independence Standards Yes How many audits of public companies per year does a CPA firm that is registered with the Public Company Accounting Oversight Board (PCAOB) have to perform before it receives an annual inspection from the PCAOB? - answerMore than 100 audits. The Public Company Accounting Oversight Board (PCAOB) is charged with all of the following responsibilities except: - answerEstablishing accounting standards for public companies. At least how often should the PCAOB inspect a registered public accounting firm that regularly issues audit reports to 50 issuers? - answerEvery three years. A financial statement audit report issued for a public company states that the audit was performed in accordance with which of the following standards? - answerPublic Company Accounting Oversight Board standards. Which of the following is correct concerning PCAOB guidance that uses the term "must"? - answerThe auditor must fulfill the responsibilities if relevant to the audit. Which of the following AICPA standards did the PCAOB not adopt as a part of its interim standards? - answerAccounting and Review Services Standards. Before accepting an audit engagement a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's - answerUnderstanding as to the reasons for the change of auditors. Hill CPA, has been retained to audit the financial statements of Monday Co. Monday's predecessor auditor was Post, CPA, who has been notified by Monday that Post's services have been terminated. Under these circumstances which party should initiate the communications between Hill and Post? - answerHill, the successor auditor. Ordinarily the predecessor auditor permits the successor auditor to review the predecessor's working paper analyses relating to - answerContigencies Yes Balance Sheet Yes Which of the following factors most likely would cause an auditor not to accept a new audit engagement? - answerConcluding that the entity's management probably lacks integrity. An auditor's engagement letter most likely would include a statement that - answerLimits the auditor's responsibility to detect errors and fraud. A successor auditor ordinarily should request to review the predecessor's audit documentation relating to - answerContingencies Yes Internal Control Yes An understanding with the client should include the objectives of the engagement management's responsibilities, and - answerThe auditor's responsibilities Yes Limitations of the audit Yes A predecessor auditor - answerIs not required to attempt communication with a successor since this is the successor's responsibility. Before accepting an audit engagement a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's - answerUnderstanding as to the reasons for the change of auditors. Ordinarily the predecessor auditor permits the successor auditor to review the predecessor's working paper analyses relating to - answerContingencies Yes Balance Sheet Accounts Yes An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. This understanding generally includes - answerThe auditor's