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ACC 403 Midterm Exam: Auditing and Assurance Services

Midterm exam covering auditing and assurance services.

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    ACC 403 Midterm Exam: Auditing and Assurance Services Question 1 Which of the following services provides the lowest level of assurance on a financial statement? Answer A review An audit Neither service provides assurance on financial statements. Each service provides the same level of assurance on financial statements. Question 2 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: Answer finance. auditing. accounting. economics. Question 3 Which of the following is not a SysTrust Services principle as defined by the AICPA? Answer Online privacy Availability Processing integrity Operational integrity Question 4 An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n): Answer audit of financial statements. compliance audit. operational audit. production audit Question 5 The three requirements for becoming a CPA include all but which of the following? Answer Uniform CPA examination requirement Educational requirements Character requirements Experience requirement

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    Question 6 A correct relationship among the auditor, the client, and the external users is: Answer management of a public company hires the independent auditor. the audit committee of a private company hires the independent auditor. the client provides capital to the external users. the external users can rely upon the auditor's report to reduce information risk. Question 7 Historically auditing standards have been organized into three categories, including: Answer Standards of field work. Purpose of an audit. Responsibilities of the auditor. Proper planning and supervision Question 8 Statements on Standards for Accounting and Review Services are issued by the: Answer Accounting and Review Services Committee. Professional Ethics Executive Committee. Securities and Exchange Commission. Financial Accounting Standards Bo ard. Question 9 The AICPA has authority to establish standards and rules in all but which of the following areas? Answer Auditing standards applicable to financial statements of private companies Compilation and review standards Professional conduct Auditing standards applicable to financial statements of private and public companies Question 10 The "Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles" provides a framework to help auditors: Answer understand the ten GAAS standards. obtain complete assurance that the financial statements are free from any error. report on the financial statements. prevent fraud. Question 11 Which of the following are audit standards used in professional practice by audit firms? Answer International

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