ACC 403 Quiz 2

ACC 403 Quiz 2

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1.       A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:

2.       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:

3.       A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:

4.       The standard unqualified audit report for a non-public entity must:

5.       An adverse opinion is issued when the auditor believes:

6.       The standard unqualified audit report:

7.       After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:

8.       The auditor's responsibility section of the standard unqualified audit report states that the audit is designed to:

9.       Auditing standards for public companies are established by the:

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

11.   The explanatory paragraph for a qualified opinion would:

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

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

14.   When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:

15.   The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:

16.   Interpretations of the rules regarding independence allow an auditor to serve as:

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

18.   The underlying reason for a code of professional conduct for any profession is:

19.   The AICPA's Code of Professional Conduct requires independence for all:

20.   Ethics are:

21.   Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client's consent as a result of a:

22.   Which of the following represents all of the ways a CPA firm can be organized under Rule 505?

23.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

24.   The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:

25.   A CPA firm may charge a contingent fee for:

26.   The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a "direct financial interest" of the CPA?

27.   When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

28.   When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:

29.   "Independence" in auditing means:

30.   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?

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