Which of the following categories of principles is most closely related to gathering audit evidence?
A. Gathering audit evidence is a component of the performacne principle
To exercise due care, an accountant should
A. These practices are a part of due care
One of the accounting firm's basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by following
A. Standards within a system of quality control are firm - (rather than auditor) - related
Which of the following best demonstrates the concept of professional skepticism?
B. Professional skepticism is characterized by appropriate questioning and a critical assessment of audit evidence
The primary purpose for obtaining an understanding of the entity's environment (including its internal control) in a financial statement audit is
C. Auditors study internal control to determine the nature, timing, and extent of substantive tests
Oridinarily, what sourc of evidence should least affect audit conclusions?
D. Management representations should least affect auditors' conclusions, as they have not been validated or corroborated by external parties
The most persuasive evidence regarding the existence of newley acquired computer equipment is
A. Auditors' personal knowledge provides the most persuasive evidence
Which of the following procedures would provide the most reliable audit evidence?
D. Because the statements were received directly from outisde parties, this is a more reliable form of evidence than choice (c)
Breaux & co, CPAs require that all audit documentation contain the initials of the preparer and the reviewer in the top right-hand corner. This procedure provides evidence of Breaux and Co, CPA's professional concern regarding which of the following?
B. Initials of the preparer and reviewer provide evidence that the documentation was reviewed, which relates to planning and supervision
The attestation standards do no contain a requirement that auditors obtain
D. An understanding of the client's environment (including internal control) is not required under attestation standards, because internal control may not always be relevant to the subject matter of the attestation
Which of the following concepts is least related to the standard of due care?
C. Due care recognizes that mistakes and misrepresentations may occuring during the audit
The evidence considered most appropriate by auditors is best described as
C. Direct, personal knowledge of auditors is the most appropriate form of evidence
Auditor's understanding of the internal control in an entity contributes information for
B. The primary purpose of obtaining an understanding of a client's internal contro is to plan the nature, timing, and extent of substantive audit procedures on an engagement
Which of the following elements of a system of quality control is related to firms receiving independence confirmations from its professionals with respect to clients?
D. Relevant ethical requirements - Independence confirmations would ensure that all firm personnel are independent with respect to that firm's clients, which is related to the "Relevant Ethical Requirements" element of a system of quality control. It would not related to acceptance and continuance of clients (a), engagement performance (b), or monitoring (c)
Which of the following standards is not correctly associated with its rule-making body?
a. Public Company Accounting Oversight Board, Auditing Standards
b. Governmental Accounting Standards Board, Government Auditing Standards c. Auditing Standards Board, Statements on Auditing Standards d. International Auditing and Assurance Standards Board, International Statements on Auditing
b. Government auditing standards are issued by the government Accountability Office (GAO). Governmental accounting standards are issued by the Government Accounting Standards Board.
Kramer, CPA consulted with an independent appraiser regarding the valuation of fine art for a not-for-profit musuem. Consultation with a specialist in this case would
A. Consultation with a specialist domonstrates due care if auditors do not have expertise in the area in question
Which of the following topics is not addressed in the auditors' report for a public entity?
A. Auditors provide reasonable (but not absolute) assurance in an audit engagement (this is noted in teh scope paragraph of the auditors' report).
Which of the following is a conceptual difference between attestation standards and generally accepted auditing standards?
B. Attestation standards differ from gernally accepted auditiing standards in that they apply to engagements other than those on historical audited financial statements
