Multiple Choice Quiz
Multiple Choice Quiz
Results Reporter
Out of 12 questions, you answered 2 correctly with a final grade of 17%
2 correct
(17%)
10
incorrect
(83%)
0
unanswer
ed (0%)
Your Results:
The correct answer for each question is indicated by a
1
INCORRECT
2
INCORRECT
When GAAS often do not provide "hard and fast rules," they provide
subjective guidance which allows auditors to:
A)
B)
C)
D)
3 CORRECT
4
INCORRECT
5
INCORRECT
6 CORRECT
The primary difference between financial statement errors and fraud is that:
Errors are intentional misstatements by management, while fraud
A) involves unintentional mistakes or omissions.
Errors are unintentional mistakes or omissions, while fraud involves
B) intentional misstatements.
C)
Errors are more likely to provide an indication that an illegal act has
D) occurred.
7
INCORRECT
Auditor responsibility for identifying "direct effect" illegal acts differs from
their responsibility for detecting:
A)
B)
C)
D)
8
INCORRECT
Errors.
Fraud.
Management fraud.
Other illegal acts.
When the Statements on Auditing Standards use the word "must" relating to
a requirement, it means that the auditor:
A)
Must comply with the requirements unless the auditor finds that
B) alternative actions are sufficient.
May only decide not to perform the procedure in the audit of a
C) nonpublic company.
May use professional judgment in all circumstances in deciding
D) whether to meet the requirement.
9
INCORRECT
Absolute assurance.
B)
C)
D)
10
INCORRECT
High assurance.
Negative assurance.
Reasonable assurance.
11
INCORRECT
If financial statements are not fairly presented on an overall basis, the most
likely type of audit opinion will be a(n):
A)
B)
C)
D)
12
INCORRECT
Adverse opinion.
Disclaimer of opinion.
Qualified opinion.
GAAP departure opinion.
D)
esults Reporter
Out of 12 questions, you answered 4 correctly with a final grade of 33%
4 correct
(33%)
8 incorrect
(67%)
0
unanswere
d (0%)
Your Results:
The correct answer for each question is indicated by a
1
INCORRECT
2 CORRECT
3
INCORRECT
It applies only when the Code of Professional Conduct does not directly
C) address a threat to independence.
It is relevant only in those situations in which consulting services are
D) being performed.
4
INCORRECT
5
INCORRECT
Adverse interest
Financial self-interest
Management participation
Safeguards
6 CORRECT
Which of the following statements is true with respect to the SEC's concept
of independence when an auditor both prepares financial statements and
audits those financial statements for a client?
A)
7
INCORRECT
8 CORRECT
A partner in the San Diego office of the CPA firm who maintains a
B) small, immaterial investment in Company A.
A partner in the Chicago office who worked on the Company A audit in
C) previous years, but currently has no responsibilities with respect to the
audit.
D)
9 CORRECT
Which of the following is a correct statement concerning the SarbanesOxley Act of 2002?
A)
10
INCORRECT
11
INCORRECT
Can only be released for peer reviews after receiving permission from
C) the client.
Should be conveyed to the public if it affects the "correctness" of the
D) financial statements.
12
INCORRECT
C)
It may not restrict its liability in any manner for services it now
D) provides which previously had been provided by the traditional CPA
firm.
Results Reporter
Out of 10 questions, you answered 1 correctly with a final grade of 10%
1 correct
(10%)
9
incorrect
(90%)
0
unanswe
red (0%)
Your Results:
The correct answer for each question is indicated by a
1
INCORRECT
The form of attestation that provides the highest form of assurance is a(n):
A)
B)
C)
D)
2
INCORRECT
Assembly.
Compilation.
Review.
Examination.
Governance
Reliability
Relevance
Timeliness
INCORRECT
4
INCORRECT
5
INCORRECT
Internal control
Compliance with GAAP
Fairness of the financial statement amounts
Quality of management's business decisions
6 CORRECT
Operational audit
Sufficiency audit
Compliance audit
C)
D)
7
INCORRECT
Internal auditors are most likely to issue a report on which of the following?
A)
B)
C)
D)
8
INCORRECT
9
INCORRECT
10
INCORRECT