ACC 403 midterm exam part 1

ACC 403 midterm exam part 1

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1.       ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

2.       Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

3.       In "auditing" financial accounting data, the primary concern is with:

4.       Which of the following services provides the lowest level of assurance on a financial statement?

5.       Three common types of attestation services are:

6.       The most common way for users to obtain reliable information is to:

7.       The legal right to perform audits is granted to a CPA firm by regulation of:

8.       The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

9.       For privately held companies who is responsible for establishing auditing standards?

10.   The "Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles" provides a framework to help auditors:

11.   The Public Company Accounting Oversight Board:

12.   Statements on Standards for Accounting and Review Services are issued by the:

13.   The auditor's responsibility section of the standard audit report states that the auditor is:

14.   The standard unqualified audit report:

15.   Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:

16.   An audit of historical financial statements most commonly includes the:

17.   The standard unqualified audit report for public entities includes the following three paragraphs:

18.   If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

19.   Which of the following is required for a firm to designate itself "Member of the American Institute of Certified Public Accountants" on its letterhead?

20.   The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

21.   The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

22.   Which of the following services are allowed by the SEC whenever a CPA also audits the company?

23.   "Independence" in auditing means:

24.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client's CEO agrees that there are misstatements, but refuses to correct them. She claims that "confidentiality" prevents the CPA from informing anyone. Which of the following statements is correct?

25.   An auditor's independence is considered impaired if the auditor has:

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