D215 Auditing WGU All Chapter Quizzes Questions And Verified Answers

D215 Auditing WGU All Chapter Quizzes Questions And Verified Answers .Module 1-LO1.1- Differentiate between assurance, attestation, and audit services. Identify a service that falls under audit services. Examination of historical financial statements .Module 1-LO1.1- Differentiate between assurance, attestation, and audit services. Examination of internal controls is a service that comes under _______ services, which fall under _______ services. attestation; assurance .Module 1-LO1.2- Describe the different types of assurance services. Within a U.S. context, the applicable financial reporting framework is typically _______. Generally Accepted Accounting Principles (GAAP) .Module 1-LO1.2- Describe the different types of assurance services. Which two audits does an integrated audit combine? A financial statement audit and an audit of the effectiveness of Internal Control Over Financial Reporting (ICFR) .Module 1-LO1.3-Identify the demand for audit and assurance services. Who among the following users of the financial statement of a company may be particularly interested in evaluating whether the company is paying a fair amount of taxes given its reported earnings, and to gain a better understanding of the company’s activities? government .Which items are part of the organizational structure as detailed in the Committee of Sponsoring Organizations' framework? division .Module 1-LO1.3-Identify the demand for audit and assurance services. Since users of financial statements make financial decisions that have real consequences, it is very important that users can depend on the information contained in the financial statements. What term captures this problem? reliability .Module 1-LO1.4-Differentiate between the roles of the financial statement preparer and the auditor. Which of the following falls within the purview of a financial statement preparer? Changes in equity .Module 1-LO1.4- Differentiate between the roles of the financial statement preparer and the auditor. Management is responsible for which of the following? Designing, implementing, and maintaining internal control relevant to the preparation of the financial statements. .Module 1-LO1.5- Identify the roles of different regulators and organizations that affect the audit profession. Which of the following comes under the purview of the Public Company Accounting Oversight Board? Auditing Standards (AS) .Module 1-LO1.5- Identify the roles of different regulators and organizations that affect the audit profession. Which of the following is a private professional membership organization of CPAs representing the accounting profession? AICPA .Module 1-LO1.6- Describe the concepts of reasonable assurance, materiality, and the unqualified report on the audit of financial statements. Which statement is correct as to financial statement audit reports for public versus private companies? There is a standard report for the audit of public company financial statements and a standard report for the audit of private company financial statements. .Module 1-LO1.6- Describe the concepts of reasonable assurance, materiality, and the unqualified report on the audit of financial statements. With regard to financial statements, the auditor is required to obtain reasonable assurance, which is a level of assurance that is _______. high, but not absolute .Module 1-LO1.7- Describe the concept of reasonable assurance and the nature of an unqualified report on internal controls over financial reporting. If auditors conclude the company did not maintain effective Internal Control Over Financial Reporting (ICFR) over the period under audit, it would mean the auditors discovered a/an _______ in the client’s ICFR. Material weakness .Module 1-LO1.7- Describe the concept of reasonable assurance and the nature of an unqualified report on internal controls over financial reporting. Which of the following is the discovery of material weakness? Conclusion that the company did not maintain effective Internal Control Over Financial Reporting (ICFR) over the period under audit .Module 1-LO1.8- Explain the audit expectation gap. Which of the following beliefs will narrow the audit expectation gap? There is no guarantee the auditor will find all material fraud, should fraud have occurred. Module 1-LO1.8-Explain the audit expectation gap. Economic conditions impact _______. financial statement user's expectations .Module 2-LO2.1-Identify what it means to be a professional and how these traits apply to auditors. In defining a profession or professional, one common characteristic is _______. concern for the public interest .Module 2-LO2.1-Identify what it means to be a professional and how these traits apply to auditors. Which group licenses CPAs? The state boards of accountancy .Module 2-LO2.1-Identify what it means to be a professional and how these traits apply to auditors. What must CPAs complete to obtain licensure? Required education, pass the CPA exam, and requisite experience requirement. .Module 2-LO2.1-Identify what it means to be a professional and how these traits apply to auditors. Susan, a college student, is preparing an essay. Which of the following principles should she use to explain why a Certified Public Accountant (CPA) is defined as a Concern for Public Interest (CPI) professional? Code of Ethics .Module 2-LO2.2-Identify the structure of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. Interpretations in the AICPA code provide additional guidance regarding the scope and applicability of the _______. rules of conduct .Module 2-LO2.2-Identify the structure of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. Which of the following components of the AICPA are enforceable? Rules of conduct .Module 2-LO2.2-Identify the structure of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. The structure of the AICPA _______________ includes four major sections: preface, rules for members in public practice, rules for members in business, and rules for other members. Code of Professional Conduct .Module 2-LO2.2-Identify the structure of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. Which of the following provides guidance to all members of the AICPA with respect to performance of their professional responsibilities? Code of Professional Conduct .Module 3-LO2.3-Apply the conceptual framework approach to ethical decision-making for members of public practice. Which of the following is the threat that, due to a long or close relationship with a client, a CPA will become too sympathetic to the client's interests or too accepting of the client's work or product? Familiarity threat .Module 3-LO2.3-Apply the conceptual framework approach to ethical decision-making for members of public practice. If a CPA is unable to implement effective safeguards, what should the CPA do? Decline the engagement. .Module 3-LO2.3-Apply the conceptual framework approach to ethical decision-making for members of public practice. A/an ________ threat exists if a CPA performs bookkeeping services for a private company client and that work needs to be evaluated by the same firm in the course of an attest engagement. self-review .Module 3-LO2.4- Evaluate the ethical behavior needed to comply with rules of conduct on integrity and objectivity. According to the integrity and objectivity rule, in the performance of any professional service, a member shall not knowingly _______. hide activities that could be a conflict of interest .Module 3-LO2.4- Evaluate the ethical behavior needed to comply with rules of conduct on integrity and objectivity. How does a small firm resolve the conflict of interest issue in a divorce case? Provide tax services to only one of the two parties.