Independent audits of today place more emphasis on sampling than did the audits of the 19th Century.
The American Institute of Certified Public Accountants issues CPA certificates and permits to practice.
The American Institute of Certified Public Accountants has the primary authority to establish accounting standards.
Many small companies elect to have their financial statements reviewed by a CPA firm, rather than incur the cost of an audit.
Staff assistants in CPA firms generally are responsible for planning and coordinating audit engagements.
The Sarbanes-Oxley Act requires that auditors of certain publicly traded companies in the United States perform an integrated audit that includes providing assurance on both the financial statements and on compliance with laws and regulations.
A summary of findings rather than assurance is most likely to be included in a(n)
Agreed-upon procedures report
Historically, which of the following has the AICPA been most concerned with providing
Professional standards for CPAs
The organization charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public is the
The Securities and Exchange Commission
An engagement in which a CPA firm arranges for a critical review of its practices by another CPA firm is referred to as a(n)
Peer Review Engagement
The serially-numbered pronouncements issued by the Auditing Standards Board over a period of years are known as
Statements on Auditing Standards
The Government Accountability Office (GAO)
Conducts operational audits and reports the results to Congress.
The risk that a company will not be able to meet its obligations when they become due is an aspect of
Which of the following attributes most clearly differentiates a CPA who audits management's financial statements as contrasted to management
Attestation risk is limited to a low level in which of the following engagement(s)
Examinations, but not reviews
When compared to an audit performed prior to 1900, an audit today
Is more likely to include tests of compliance with laws and regulations
Which of the following are issued by the Securities and Exchange Commission
Financial Reporting Releases
Which of the following is not correct relating to the Sarbanes-Oxley Act
It created the Public Company Accounting Oversight Board (PCAOB) as a replacement for the Financial Accounting Standards Board
An operational audit differs in many ways from an audit of financial statements
The boundaries of an operational audit are often drawn from an organization chart and are not limited to a single accounting period
The review of a company's financial statements by a CPA firm
Is substantially less in scope of procedures than an audit
Which statement is correct with respect to continuing professional education (CPE) requirements of members of the AICPA
Members, regardless of whether they are in public practice, are required to meet such requirements
The FDIC Improvement Act requires that management of large financial institutions engage auditors to attest to assertions by management about the effectiveness of the institution's internal controls over
Passage of the Sarbanes-Oxley Act led to the establishment of the
Public Company Accounting Oversight Board
Which of the following professionals has primary responsibility for the performance of an audit
The partner in charge of the engagement
Which of the following types of services is generally provided only by CPA firms
Financial statement audits
The right to practice as a CPA is given by which of the following organizations
State Boards of Accountancy
Which of the following terms best describes the audit of a taxpayer's tax return by an IRS auditor
Which of the following best describes the reason why independent auditors report on financial statements
Different interests may exist between the company preparing the statements and the persons using the statements
Governmental auditing often extends beyond examinations leading to the expression of opinion on the fairness of financial presentation and includes audits of efficiency, economy, effectiveness, and also
Operational auditing is primarily oriented toward
Future improvements to accomplish the goals of management
A typical objective of an operational audit is for the auditor to
Make recommendations for improving performance
An integrated audit performed under the Sarbanes-Oxley Act requires that auditors report on
Financial statements and internal control
Develop accounting standards for public and nonpublic companies
Financial Accounting Standards Board
Formed to improve standards of financial accounting for state and local government entities
Government Accounting Standards Board