Audit Chapter 1 Test Bank review

Sarbanes-Oxley Act Applies to - correct answer Public Companies Considered as Audit Evidence - correct answer 1)Oral Statements 2)Written Communications 3)Auditor Observations Recording, classifying, and summarizing economic events - correct answer Accounting In Auditing financial accounting, the primary concern is - correct answer determining whether recorded information properly reflects the economic events that actually occurred during the accounting period Primary trait that distinguishes Auditors from Accountants - correct answer Auditors accumulate and interpret evidence related to the companies financial statements Risk that reflects the possibility that the information upon decisions is made is misstated - correct answer Information Risk CPA title is regulated by... - correct answer The state Reasons why financial Statement users receive unreliable information - correct answer 1)Complex Exchange transactions 2) Too much information 3) Remoteness of information In the Audit of Historical Financial Statements, the criteria is - correct answer GAAP Any service that requires a CPA to report about the reliability of an assertion made by another party is - correct answer an Attestation Service 3 Common types of Attestation Services - correct answer 1)Audits 2)Reviews 3)Attestations regarding Internal Controls Review - correct answer Provides less assurance than an Audit Sarbanes-Oxley prohibits firms from doing which type of work for firms whom they are already doing audit work for - correct answer Consulting What requires a written report regarding the assertion of another party - correct answer 1)Financial Statement Audit 2)Operational Audit 3)Compliance Audit 4)Attestation engagement Sytrust - correct answer Provides assurance on system reliability in areas such as security and data integrity