ACC 403 Mid Term Part 1

ACC 403 Mid Term Part 1

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1.       Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

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

3.       The use of the Certified Public Accountant title is regulated by:

4.       The Sarbanes-Oxley Act applies to which of the following companies?

5.       Three common types of attestation services are:

6.       The three requirements for becoming a CPA include all but which of the following?

7.       Members of the Public Company Accounting Oversight Board are appointed and overseen by:

8.       Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

9.       Hansen Corporation's stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen's management hires a CPA to perform an independent audit of Hansen's financial statements. The primary objective of this audit is to provide assurance to the:

10.   Which of the following are audit standards used in professional practice by audit firms?

11.   Statements on Auditing Standards issued by the AICPA's Auditing Standards Board are:

12.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

13.   The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:

14.   As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

15.   If the phrase "except for" is present in the opinion paragraph of the audit report, the auditor has issued a(n):

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

17.   Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:

18.   Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

19.   The members of a client's "audit committee" should be:

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

21.   A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:

22.   Under the AICPA independence rules, the auditor:

23.   Independence is required of a CPA when performing:

24.   When CPAs are able to maintain their actual independence, it is referred to as independence in:

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

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