In the auditing process

Which of the following can be used as a criteria for evaluating information being audited?

The possibility that a business may not be able to repay a bank loan because of an economic downturn is referred to as

A correct relationship among the auditor, the client, and the external users is

External users of the financial statements

In the audit of historical financial statements, management asserts that the financial statements are fairly stated in accordance with what standards?

Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n)

Three common types of attestation services are

Which of the following services provides the lowest level of assurance on a financial statement?

Which of the following is an accurate statement regarding assurance services?

Audits

A high, but not absolute, level of assurance is called

The trait that distinguishes auditors from accountants is the

Which of the following is an accurate statement regarding the various types of other assurance services?

One objective of an operational audit is to

An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n)

Which one of the following is more difficult to evaluate objectively?

Which of the following audits can be regarded as generally being a compliance audit?

Internal auditors

Which type of auditor audits the financial information prepared by various federal government agencies before it is submitted to Congress?

The use of the Certified Public Accountant title is regulated by

The legal right to perform audits is granted to a CPA firm by regulation of

Which of the following is not a characteristic of a small firm?

Which of the following does not describe a size category for a CPA firm?

________ is one of the Big Four international CPA firms.

In which type of service does the CPA assemble the financial statements but provide no assurance to third parties?

Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providing many consulting services to their publicly traded audit clients. Which of the following is true for auditors of publicly traded companies? I. They are restricted from providing consulting services to privately held companies. II. There is no restriction on providing consulting services to non-audit clients.

Which of the following statements is true as it relates to limited liability partnerships?

Which staff level in a CPA firm performs most of the detailed audit work?

The organization that is responsible for providing oversight for auditors of public companies is called the

Members of the Public Company Accounting Oversight Board are appointed and overseen by the

The Public Company Accounting Oversight Board

The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the

The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the

Which of the following is a correct statement regarding the SEC?

With respect to the SEC,

Statements on Standards for Accounting and Review Services (SSARS) are issued by the

The American Institute of Certified Public Accountants (AICPA)

In a financial statement audit, the auditor

Management is required by GAAP to reduce information risk, even if the costs outweigh the benefits.

The primary purpose of a compliance audit is to determine whether the financial statements are prepared in compliance with generally accepted accounting principles.

Results of compliance audits are typically reported to the company's management rather than to a broad spectrum of outside users.

One criteria used by an external auditor to evaluate published financial statements is known as generally accepted auditing standards.

Many small, local accounting firms perform audits as their primary service to their clients.

Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providing many consulting services to their publicly traded audit clients.

In a CPA firm, the audit partner coordinates the performance of audit procedures.

Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

All of the Big Four accounting firms and many of the smaller CPA firms now operate as limited liability partnerships.

The Public Company Accounting Oversight Board (PCAOB) provides oversight to auditors of publicly traded and private companies.

The difference between the Securities Act of 1933 and the Securities Act of 1934 is that onlythe 1934 act requires audited financial statements.

Form 10-K must be filed with the SEC whenever a public company experiences a significant event.

The overall purpose of the Securities and Exchange Commission is to assist in providing investors with reliable information upon which to make investment decisions.

A CPA must meet continuing education requirements to maintain their license to practice.

Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors. Answer: