AUDITING AND ASSURANCE SERVICES
EXAM SCRIPT SOLVED QUESTIONS
ACCURATE ANSWER COLLECTION
●● The Public Company Accounting Oversight Board (PCAOB):
Answer: - sets all audit standards for audits of public companies
- inspects audit firms' quality control processes
- performs inspections of completed audit work
●● Auditing is:
Answer: supplying an opinion as to the fairness of financial statements
●● When a practitioner is engaged to issue a report on a subject matter
or an assertion about subject matter that is responsibility of another party
it is a(n) __________________ ________________________.
Answer: attestation engagement
●● Preparing financial statements from a client's books and records
without performing any evidence-gathering work is a(n)
Answer: compilation
, ●● A company's year end was Tuesday, December 31. On Friday,
January 3 the entire payroll for the week was recorded as an expense.
This is an example of a(n) _____________ error.
Answer: cutoff
●● To minimize business risk and take advantage of opportunities,
CEOs demand information that is:
Answer: - reliable
- relevant
- timely
●● The probability that data circulated by a company will be false or
misleading is __________ risk.
Answer: information risk
●● True or False: Providing assurance is a form of attestation.
Answer: False
●● The objective of ______ auditing is to help an organization
accomplish its objectives by bringing a systematic, disciplined approach
to evaluate and improve the effectiveness of risk management, control
and governance processes.
Answer: internal
EXAM SCRIPT SOLVED QUESTIONS
ACCURATE ANSWER COLLECTION
●● The Public Company Accounting Oversight Board (PCAOB):
Answer: - sets all audit standards for audits of public companies
- inspects audit firms' quality control processes
- performs inspections of completed audit work
●● Auditing is:
Answer: supplying an opinion as to the fairness of financial statements
●● When a practitioner is engaged to issue a report on a subject matter
or an assertion about subject matter that is responsibility of another party
it is a(n) __________________ ________________________.
Answer: attestation engagement
●● Preparing financial statements from a client's books and records
without performing any evidence-gathering work is a(n)
Answer: compilation
, ●● A company's year end was Tuesday, December 31. On Friday,
January 3 the entire payroll for the week was recorded as an expense.
This is an example of a(n) _____________ error.
Answer: cutoff
●● To minimize business risk and take advantage of opportunities,
CEOs demand information that is:
Answer: - reliable
- relevant
- timely
●● The probability that data circulated by a company will be false or
misleading is __________ risk.
Answer: information risk
●● True or False: Providing assurance is a form of attestation.
Answer: False
●● The objective of ______ auditing is to help an organization
accomplish its objectives by bringing a systematic, disciplined approach
to evaluate and improve the effectiveness of risk management, control
and governance processes.
Answer: internal
