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One of an accounting firm's basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by following:
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One of an accounting firm's basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of achieving this objective can be obtained by following:
Standards within a system of quality control.
Which of the following best demonstrates the concept of professional skepticism?
Critically assessing verbal evidence received from the entity's management.
Ordinarily, what source of evidence should least affect audit conclusions?
Inquiry of management.
Which of the following opinions would be issued if auditors believed that the entity's financial statements were not presented in conformity with GAAP?
Adverse opinion.
Which of the following statements is not true with respect to the performance principle?
Auditors are required to prepare a written audit plan during the planning stages of initial audits but are not required to do so in continuing audits.
Which of the following concepts is least related to the standard of due care?
Reasonable assurance.
The evidence considered most appropriate by auditors is best described as:
Direct personal knowledge obtained through physical observation and mathematical recalculation.
Kramer, CPA, consulted an independent appraiser regarding the valuation of fine art for a not-for-profit museum. Consultation with the appraiser in this case would:
Be considered as exercising proper due care.
Breaux & Co. CPAs require that all audit documentation indicates the identity of the preparer and the reviewer. This procedure provides evidence relating to which of the following?
Adequate planning and supervision
Which of the following is true with respect to PCAOB inspections of accounting firms?
PCAOB inspections review a sample of audits conducted by firms as well as the firm's systems of quality control.
The particular and specialized actions that auditors take to obtain evidence during a specific engagement are known as:Audit procedures.Which of the following is most closely related to the responsibilities principle?The auditors' compliance with relevant ethical requirements of independence and due care.Auditors' understanding of the internal control in an entity provides information for:Planning the nature, timing, and extent of substantive procedures on an audit.Which of the following procedures would provide the most reliable audit evidence?Inspection of bank statements obtained directly from the client's financial institution.Which of the following is most closely related to the relevance of audit evidence?In addition to confirmations of accounts receivable, auditors perform an analysis of the aging of accounts receivable to evaluate the collectability of accounts receivable.Which of the following categories of principles is most closely related to gathering audit evidence?Performance.Which of the following is not related to ethical requirements of auditors?Professional judgment.Which of the following topics is not addressed in the auditors' report for an issuer?Absolute assurance regarding the fairness of the entity's financial statements in accordance with GAAP.The most reliable evidence regarding the existence of newly acquired computer equipment is:Physical observation.Which of the following principles is most closely associated with the auditors' conclusion as to the fair presentation of the entity's financial statements?Reporting principle.