Chapter 2

Which of the following organizations can revoke the right of an individual to practice as a CPA?
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Terms in this set (37)
State whether you agree or disagree with the statement concerning the auditors' unqualified report of a public company. - "State whether you agree or disagree with each of the following statements concerning the auditors' unqualified report of a public company."DisagreeState whether you agree or disagree with the statement concerning the auditors' unqualified report of a public company. - "The report indicates that the audit evidence obtained is sufficient and appropriate to provide a basis for the audit opinion."AgreeState whether you agree or disagree with the statement concerning the auditors' unqualified report of a public company. - "The report should begin with CPA's Report at the top."DisagreeFinancial reporting frameworkGenerally accepted accounting principlesQuality control elementsHuman resources and monitoringA report providing a summary of findingsAgreed-Upon Procedures reportA report providing reasonable assuranceAudit reportQuestioning mindProfessional skepticismThe subject of a peer review.Quality control policiesCriteria used to determine, measurement, recognition, representation and disclosure of material items.Financial reporting frameworkIssues international standards on auditing.The International Auditing & Assurance Standards Board (IAASB)Matters involving especially challenging, subjective, or complex auditor judgment.Critical Audit Matters (CAMs)Requirement for all CPA firms with issuer clients.InspectionsMatters of most significant in the audit of the financial statements.Key Audit Matters (KAMs)A worldwide organization of national accounting bodiesInternational Federation of Accountants (IFAC)Intentional misstatement.FraudEstablished by the Sarbanes-Oxley Act of 2002.Public Company Accounting Oversight Board (PCAOB)Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: Fraudulent Financial Reporting - Misapportionment of AssetsYes & YesFinancial statements are prepared following a(an):Applicable financial reporting framework.An attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatements, and a critical assessment of audit evidence is referred to as:Professional SkepticismWhich of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards?An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements.Which of the following is accurate, as indicated in the principles underlying an audit?An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement.Which of the following is not an underlying premise of an audit?Management and the auditors have responsibility for the preparation of financial statements in accordance with the applicable financial reporting framework.If auditors determine the client has committed an illegal act, they would be most likely to withdraw from the engagement when the:Management fails to take appropriate corrective actionPrimary responsibility for the financial statements lies with: Auditors - ManagementNo - YesWhich of the following is explicitly stated in the section on management's responsibility in a nonpublic company unmodified audit report?Management is responsible for the maintenance of internal control relevant to the preparation and fair presentation of financial statements.The auditors' report for a nonpublic company should indicateThat the auditors evaluate the appropriateness of accounting policies used.