ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
1. Audit Services services by an independent CPA that provide financial
statement users with (1) an opinion on whether the
financial statements are presented fairly, in all material
respects, in accordance with an applicable financial
reporting framework and (2) an opinion on the
effectiveness of ICFR, which enhance the degree of
confidence that intended users can place in the financial
statements
2. Attestation Ser- Services performed when an independent practitioner, or
vices CPA, is engaged to issue a report on subject matter that is the
responsibility of another party
3. Relationship of Audit - highest quality/reasonable assurance (i.e.,
historassurance, attes- ical financial statements) tation, and audit-
Attestation - mid quality/limited assurance (i.e., review ing services from of
historical financial statements, examination of internal most to least im-
controls, review of financial forecast) proved of quality Assurance - lowest
quality (i.e., compilation of histori(i.e., assurance) cal financial statements,
website security, IT operations, non-financial information)
4. Assurance Ser- independent professional services that improve the
qualvices ity of information, or its context, for decision makers
5. Applicable finan- the set of standards used in preparing the historical
financial reporting cial statements (i.e., GAAP, IFRS, or federal income tax
framework refers basis of accounting) to
6. Independent im- someone who was not involved with the creation of the
plies that the ser- information and who is objective in the evaluation of the
vice is performed information by
7. Quality refers to the relevance and realiability of the information
,ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
8. Information
refers to
subject matter that can be financial or nonfinancial,
historical or prospective, standalone data or entire
systems of data, internal or external to a company
9. CPAs are the Licensed accounting professionals in the US.
only _________ Licenses are issued at the state level, not federal
accounting professionals in the US and the ________ are
issued at the ____________ level
10. A state board of a licence to practice after all three Es have been earned
accountancy will only issue
11. CPA Es Education, Exam, and Experience
12. Public compa-an annual financial statement audit and an ICFR audit nies,
or issuers, in the US are required by federal government to have
13. Private compa- Not required by law, other interested users may request
nies, or non-is- audited financial statements (i.e., lenders) suers, are
_______ to have an annual audit by federal government, but
14. ICFRInternal Control over Financial Reporting
15. Integrated Audit
16. The limitations financial statement audit with an audit of the effectiveness
of an audit are of ICFR
cause by
1. the nature of financial reporting
An audit that
2. the nature of audit procedures
combines the
,ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
3. the need for the conducted within a reasonable period of time at a
audit to be reasonable cost
17. The nature of fi- the use of judgment when preparing financial statements
nancial reporting due to the subjectivity required when arriving at
accountrefers to ing estimates and judgment required when selecting and
applying accounting methods
18. The nature of Reliance on evidence provided by the client and its manaudit
procedures agements, as well as the concept of materiality refers to
19. Materiality the ability of information to influence decisions that users make
on the basis of the financial information of a specific reporting entity
20. Compliance Au- an audit to determine whether the entity has conformed dit
with regulations, rules, or processes
21. Operational (Per- An assessment of the economy, efficiency, and
effectiveformance) Audit ness of an organization's operations
22. Operational Au- Economy refers to the cost of inputs dit economy, effi-
Efficiency refers to the relationship between inputs and ciency, and effec-
outputs
tiveness refer to Effectiveness refers to the achievement of certain goals or
the production of a certain level of outputs
23. Internal Audit A function within an entity which generally evaluates and
improves risk management, internal control procedures,
and elements of the governance process
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
24. Those charged with governance Persons with responsibility for
overseeing the strategic direction of the entity and the obligations related to
the accountability of the entity
25. The external au- Internal auditors when evaluating the evidence needed to
ditor may rely on form an opinion on the financial statements or on ICFR
the work done by
26. Financial State- Investors, suppliers, customers, lenders, employees,
govment Users in- ernments, and the general public clude
27. Sources of de- Remoteness (users do not have access to the
company) mand for au- Complexity (amounts affected by significant
estimates dit and assur- requiring knowledge and experience to evaluate)
ance services Competing incentives (determine biased information)
Reliability
28. Management is 1. Ensuring the information included in the financial
stateresponsible for ments is presented fairly and complies with the
applicable
29. Auditors are the financial statements
responsible for 3. Providing the auditor with access to all records,
financial documentation, and personnel relevant to the
reporting preparation and fair presentation of the financial
frameowrk statements, and any additional information the auditors
2. Designing, may consider relevant to complete the audit
implementing, and Also, mgmt is responsible for making estimates for
maintaining internal some f/s items and selecting appropriate accounting
control relevant to policies within the applicable financial reporting
the preparation and framework
fair presentation of
1. Conducting the audit in accordance with the
appropriate auditing standards
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
1. Audit Services services by an independent CPA that provide financial
statement users with (1) an opinion on whether the
financial statements are presented fairly, in all material
respects, in accordance with an applicable financial
reporting framework and (2) an opinion on the
effectiveness of ICFR, which enhance the degree of
confidence that intended users can place in the financial
statements
2. Attestation Ser- Services performed when an independent practitioner, or
vices CPA, is engaged to issue a report on subject matter that is the
responsibility of another party
3. Relationship of Audit - highest quality/reasonable assurance (i.e.,
historassurance, attes- ical financial statements) tation, and audit-
Attestation - mid quality/limited assurance (i.e., review ing services from of
historical financial statements, examination of internal most to least im-
controls, review of financial forecast) proved of quality Assurance - lowest
quality (i.e., compilation of histori(i.e., assurance) cal financial statements,
website security, IT operations, non-financial information)
4. Assurance Ser- independent professional services that improve the
qualvices ity of information, or its context, for decision makers
5. Applicable finan- the set of standards used in preparing the historical
financial reporting cial statements (i.e., GAAP, IFRS, or federal income tax
framework refers basis of accounting) to
6. Independent im- someone who was not involved with the creation of the
plies that the ser- information and who is objective in the evaluation of the
vice is performed information by
7. Quality refers to the relevance and realiability of the information
,ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
8. Information
refers to
subject matter that can be financial or nonfinancial,
historical or prospective, standalone data or entire
systems of data, internal or external to a company
9. CPAs are the Licensed accounting professionals in the US.
only _________ Licenses are issued at the state level, not federal
accounting professionals in the US and the ________ are
issued at the ____________ level
10. A state board of a licence to practice after all three Es have been earned
accountancy will only issue
11. CPA Es Education, Exam, and Experience
12. Public compa-an annual financial statement audit and an ICFR audit nies,
or issuers, in the US are required by federal government to have
13. Private compa- Not required by law, other interested users may request
nies, or non-is- audited financial statements (i.e., lenders) suers, are
_______ to have an annual audit by federal government, but
14. ICFRInternal Control over Financial Reporting
15. Integrated Audit
16. The limitations financial statement audit with an audit of the effectiveness
of an audit are of ICFR
cause by
1. the nature of financial reporting
An audit that
2. the nature of audit procedures
combines the
,ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
3. the need for the conducted within a reasonable period of time at a
audit to be reasonable cost
17. The nature of fi- the use of judgment when preparing financial statements
nancial reporting due to the subjectivity required when arriving at
accountrefers to ing estimates and judgment required when selecting and
applying accounting methods
18. The nature of Reliance on evidence provided by the client and its manaudit
procedures agements, as well as the concept of materiality refers to
19. Materiality the ability of information to influence decisions that users make
on the basis of the financial information of a specific reporting entity
20. Compliance Au- an audit to determine whether the entity has conformed dit
with regulations, rules, or processes
21. Operational (Per- An assessment of the economy, efficiency, and
effectiveformance) Audit ness of an organization's operations
22. Operational Au- Economy refers to the cost of inputs dit economy, effi-
Efficiency refers to the relationship between inputs and ciency, and effec-
outputs
tiveness refer to Effectiveness refers to the achievement of certain goals or
the production of a certain level of outputs
23. Internal Audit A function within an entity which generally evaluates and
improves risk management, internal control procedures,
and elements of the governance process
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
24. Those charged with governance Persons with responsibility for
overseeing the strategic direction of the entity and the obligations related to
the accountability of the entity
25. The external au- Internal auditors when evaluating the evidence needed to
ditor may rely on form an opinion on the financial statements or on ICFR
the work done by
26. Financial State- Investors, suppliers, customers, lenders, employees,
govment Users in- ernments, and the general public clude
27. Sources of de- Remoteness (users do not have access to the
company) mand for au- Complexity (amounts affected by significant
estimates dit and assur- requiring knowledge and experience to evaluate)
ance services Competing incentives (determine biased information)
Reliability
28. Management is 1. Ensuring the information included in the financial
stateresponsible for ments is presented fairly and complies with the
applicable
29. Auditors are the financial statements
responsible for 3. Providing the auditor with access to all records,
financial documentation, and personnel relevant to the
reporting preparation and fair presentation of the financial
frameowrk statements, and any additional information the auditors
2. Designing, may consider relevant to complete the audit
implementing, and Also, mgmt is responsible for making estimates for
maintaining internal some f/s items and selecting appropriate accounting
control relevant to policies within the applicable financial reporting
the preparation and framework
fair presentation of
1. Conducting the audit in accordance with the
appropriate auditing standards
