ACC 403 Week 4 Quiz 3

ACC 403 Week 4 Quiz 3

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1.       Which of the following most accurately describes fraud?

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

3.       While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

4.       "Absence of reasonable care that can be expected of a person in a set of circumstances" defines:

5.       The laws that have been developed through court decisions are called:

6.       A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

7.       The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

8.       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:

9.       Privity of contract exists between:

10.   Fraud occurs when:

11.   In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

12.   Laws that have been passed by the U.S. Congress and other governmental units are:

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

14.   In the auditing environment, failure to meet auditing standards is often:

15.   The expectation gap:

16.   The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

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

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

19.   Which of the following assertions is described as "this assertion addresses whether all transactions that should be included in the financial statements are in fact included"?

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

21.   Tests of details of balances are specific audit procedures that are intended to:

22.   "The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:

23.   When an auditor believes that an illegal act may have occurred, the auditor should first:

24.   The essence of the attest function is to:

25.   Management assertions are:

26.   Fraudulent financial reporting is most likely to be committed by whom?

27.   The objective of an audit of the financial statements is an expression of an opinion on:

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

29.   If a client has violated federal tax laws:

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

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