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1. In the performance of an audit, a CPA:
2. Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:
3. An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:
4. Fraud occurs when:
5. Laws that have been passed by the U.S. Congress and other governmental units are:
6. While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?
7. The cycle approach to auditing:
8. If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:
9. If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:
10. The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.
11. Which of the following is not one of the three categories of assertions?
12. "The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:
13. Appropriateness of evidence is a measure of the:
14. An example of a document the auditor receives from the client, but which was prepared by someone outside the client's organization, is a:
15. A(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit.
16. The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:
17. Two determinants of the persuasiveness of evidence are:
18. Evidence is generally considered appropriate when:
19. Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence?
20. If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?
21. Most auditors assess inherent risk as high for related parties and related-party transactions because:
22. Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client's refusal to allow this communication to occur would impact Rodgers decision concerning:
23. Which is a liquidity activity ratio?
24. The purpose of an engagement letter is to:
25. A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the: