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Chapter 02
Professional Standards
True / FalseQuestions
1. Auditors may be independent in fact but not independent in appearance.
True False
2. Auditing Standards issued by the PCAOBare the solesource of guidancefor audits
of public entities.
True False
3. Attestation standards provide guidance for a wide variety of engagements
different in scopethan an audit.
True False
4. Generally accepted auditing standards must be followed on all audit
engagements.
True False
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,Nursedocs iuytredw
5. The reporting principle relates to a firm's system of quality control criteria for
conducting an audit.
True False
6. Auditors cannot effectively satisfy the responsibilities principle requiring due care if
they have not also satisfied the performance principle.
True False
7. Substantive procedures performed by the audit team are most closely related to
the risk ofmaterial misstatement.
True False
8. Auditing procedures are the same as auditing standards.
True False
9. The concept of due care reflects the need to plan and perform the audit with an
appropriate levelof professional skepticism.
True False
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, Nursedocs iuytredw
15. To be considered material, an item must be one that would influence the decision
of financial statement users.
True False
16. The contents of the auditors' report are guided by the performance principle of
GAAS.
True False
17. An unqualified opinion indicates that the financial statements present the entity's
financial condition, results of operations, and cash flows in conformity with GAAP.
True False
18. The auditors' report should either contain an expression of opinion on the financial
statements taken as a whole or an assertion to the effect that an opinion cannot be
expressed.
True False
19. Evidence is considered appropriate when it is both valid and relevant.
True False
irew
Chapter 02
Professional Standards
True / FalseQuestions
1. Auditors may be independent in fact but not independent in appearance.
True False
2. Auditing Standards issued by the PCAOBare the solesource of guidancefor audits
of public entities.
True False
3. Attestation standards provide guidance for a wide variety of engagements
different in scopethan an audit.
True False
4. Generally accepted auditing standards must be followed on all audit
engagements.
True False
irew
,Nursedocs iuytredw
5. The reporting principle relates to a firm's system of quality control criteria for
conducting an audit.
True False
6. Auditors cannot effectively satisfy the responsibilities principle requiring due care if
they have not also satisfied the performance principle.
True False
7. Substantive procedures performed by the audit team are most closely related to
the risk ofmaterial misstatement.
True False
8. Auditing procedures are the same as auditing standards.
True False
9. The concept of due care reflects the need to plan and perform the audit with an
appropriate levelof professional skepticism.
True False
irew
,Nursedocs iuytredw
irew
, Nursedocs iuytredw
15. To be considered material, an item must be one that would influence the decision
of financial statement users.
True False
16. The contents of the auditors' report are guided by the performance principle of
GAAS.
True False
17. An unqualified opinion indicates that the financial statements present the entity's
financial condition, results of operations, and cash flows in conformity with GAAP.
True False
18. The auditors' report should either contain an expression of opinion on the financial
statements taken as a whole or an assertion to the effect that an opinion cannot be
expressed.
True False
19. Evidence is considered appropriate when it is both valid and relevant.
True False
irew
