ACC 403 Quiz 3 Chapter 5-6

ACC 403 Quiz 3 Chapter  5-6

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1.       If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

2.       Which of the following most accurately describes fraud?

3.       Which of the following auditor's defenses usually means nonreliance on the financial statements by the user?

4.       Which of the following most accurately describes constructive fraud?

5.       The principal issue in cases involving alleged negligence is usually:

6.       In the performance of an audit, a CPA:

7.       The Foreign Corrupt Practices Act (FCPA) of 1977:

8.       Privity of contract exists between:

9.       The principal issue to be resolved in cases involving alleged negligence is usually:

10.   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:

11.   A CPA is subject to criminal liability if the CPA:

12.   To succeed in an action against the auditor, the client must be able to show that:

13.   A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):

14.   The assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:

15.   Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

16.   The posting and summarization audit objective is the auditor's counterpart to management's assertion of:

17.   The concept of reasonable assurance indicates that the auditor is:

18.   Which of the following statements is the most correct regarding errors and fraud?

19.   Which of the following is not one of the three categories of assertions?

20.   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.

21.   In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

22.   Management assertions are:

23.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

24.   A questioning mindset:

25.   When an auditor knows that an illegal act has occurred, she must:

26.   The most important general ledger account included in and affecting several cycles is the:

27.   The cycle approach to auditing:

28.   The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:

29.   When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:

30.   Which of the following is the auditor least likely to do when aware of an illegal act?

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