Auditing homework 30 questions | Business & Finance homework help

1. An adverse opinion occurs in a situation in which the auditors believe that departures

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

 from GAAP are _____.

 

 A. material

 B. pervasive

 C. both A and B

 D. either A or B, but not both

 E. neither A nor B

 

2. Change in accounting principles and reporting entities result in _____.

 

 A. a disclaimer of opinion

 B. an emphasis-of-matter paragraph being added to the auditors’ report

 C. an other-matter paragraph being added to the auditors’ report

 D. shared responsibility opinion

 E. none of the above

 

3. A disclaimer of opinion is a form of report in which auditors state that they _____.

 

 A. do not express an opinion on the financial statements

 B. express an opinion on the financial statements

 C. express an adverse opinion on the financial statements

 D. express a modified opinion on the financial statements

 E. none of the above

 

4. An emphasis-of-matter paragraph is included when _____.

 

 A. the financial statements do not fairly present financial postion, results of

 operations, and net cash flows in conformity with GAAP

 B. there is a lack of consistent application of GAAP

 C. there is substantial doubt about an entity’s ability to continue as a going concern

 D. all of the above

 E. B or C, only

 

5. Determining what is material involves _____ criteria.

 

 A. qualitative

 B. quantitative

 C. both A and B

 D. either A or B, but not both

 E. neither A nor B

 

 

 6. Modified opinions include _____ opinions.

 

 A. adverse

 B. disclaimer

 C. qualified

 D. all of the above

 E. B and C, only

 

7. An other-matter paragraph is a paragraph included in the auditors’ report that is _____.

 

 A. included at the auditors’ discretion

 B. required by GAAP

 C. required by GAAS

 D. A or B, only

 E. A or C, only

 

8. Pervasive is a term used in context of _____.

 

 A. anomalies

 B. misstatements

 C. qualifications

 D. all of the above

 E. B or C, only

 

9. A qualified opinion indicates that, except for the effects of some_____, the financial

 statements are fairly presented.

 

 A. departures from GAAP

 B. limitations on the scope of the audit

 C. pervasive misstatement

 D. any of the above

 E. A or B, only

 

10. Scope limitations may be imposed by _____.

 

 A. auditors

 B. client

 C. other circumstances

 D. any of the above

 E. B or C, only

 

 

 

 

 

 11. The term standard report is _____.

 

 A. actively used in practice

 B. no longer used in practice

 C. no longer formally used in the AICPA’s standards

 D. both A and C, only

 E. both B and C, only

 

12. An unmodified opinion is expressed by the auditors when they conclude that the financial  statements are prepared, _____, in accordance with the applicable financial reporting  framework.

 

 A. in all respects

 B. in all material respects

 C. in all pervasive respect

 D. in no respect

 E. none of the above

 

13. An accounting estimate is a transaction involving management’s _____.

 

 A. assumptions

 B. estimates

 C. guarantees

 D. all of the above

 E. A or B, only

 

14. A control deficiency is a weakness in the design or operation of a control that does not  allow management or employees, in the normal course of performing their functions, to  _____ misstatements on a timely basis.

 

 A. detect

 B. enhance

 C. prevent

 D. A or B, only

 E. A or C, only

 

15. An example of a routine transaction is _____.

 

 A. a cash receipt or disbursements

 B. payroll

 C. sale or purchase

 D. all of the above

 E. A or C, only

 

 

 16. An integrated audit (under PCAOB Standard No. 5) is an audit that includes audit

 reports on both _____.

 

 A. a company’s internal control over financial reporting and the financial statements

 B. compliance and operations

 C. assurance services and trust services

 D. all of the above

 E. A or C, only

 

17. A material weakness is considered is _____ severe to a significant deficiency.

 

 A. equally

 B. less

 C. more

 D. A or B, only

 E. A or C, only

 

18. The Sarbanes-Oxley Act of 2002 is an act passed by the U.S. Congress to protect

 investors from the possibility of fraudulent accounting activities by improving the _____

 of corporate disclosures.

 

 A. accuracy

 B. reliability

 C. usability

 D. all of the above

 E. A and B, only

 

19. Assurance services are professional services that improve the _____ of information for  decision makers.

 

 A. context

 B. quality

 C. quantity

 D. A and/or B, only

 E. A and/or C, only

 

20. An assertion is a _____ about whether subject matter is presented in accordance with

 certain criteria.

 

 A. affirmation

 B. declaration

 C. proclamation

 D. verification

 E. none of the above

 

 21. An examination of financial statements is referred to as a(n) _____.

 

 A. audit

 B. compilation

 C. review

 D. trust service

 E. all of the above

 

22. A review is an engagement designed to provide a _____ degree of assurance about the  conformance of subject matter, or an assertion about subject matter, with suitable criteria.

 

 A. high

 B. limited

 C. low

 D. moderate

 E. B or D, only

 

23. Limited/negative assurance provides _____ less assurance than the reasonable assurance  provided by an examination.

 

 A. minimally

 B. moderately

 C. no

 D. substantially

 E. none of the above

 

24. Prospective financial statements that present expected results, given one or more

 hypothetical assumptions are termed a financial _____.

 

 A. budget

 B. forecast

 C. plan

 D. projection

 E. none of the above

 

25. CPAs may _____ management’s discussion and analysis.

 

 A. compile

 B. examine

 C. review

 D. A or C, only

 E. B or C, only

 

 

 

 26. Trust services are engagements that provide assurances on _____.

 

 A. commercial banks

 B. fiduciary responsibilities

 C. internal control

 D. systems

 E. all of the above

 

27. XBRL is an international information format designed specifically for _____

 information.

 

 A. assurance

 B. audit

 C. business

 D. corporate

 E. none of the above

 

28. Internal auditing helps an organization accomplish its objectives by bringing a

 systematic, disciplined approach to evaluate and improve the effectiveness of _____.

 

 A. control

 B. governance processes

 C. risk management

 D. all of the above

 E. A and B, only

 

29. Operational auditing is a process of reviewing an organization to measure the _____ of  operations.

 

 A. economy

 B. effectiveness

 C. efficiency

 D. all of the above

 E. B and C, only

 

30. Compliance auditing is performing procedures to test compliance with _____.

 

 A. economy of operations

 B. laws

 C. regulations

 D. all of the above

 E. B and/or C, only