1 An increase in control risk would have the following effects on required confidence and acceptable detection risk Increase required confidence and increase acceptable detection risk Decrease required confidence and increase acceptable detection risk Increase required confidence and decrease acceptable detection risk Decrease required confidence and decrease acceptable detection risk 2 The Sarbanes Oxley Act of 2002 changed the auditing profession in significant ways including Auditors of public companies are now required to provide reasonable assurance as to whether financial statements are i c w GAAP Auditors of public companies are now allowed to provide consulting services to a client as long as the services are approved by the client's audit committee Auditors of public companies are now required to follow auditing standards established by the PCAOB Auditors of public companies are now required to be independent 3 When income is variable, auditors use revenue from the prior year to determine quantitative materiality a True b False 4 With respect to a set of financial statements, accounting is a generative process and auditing is an evaluative process True False 5 The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes Oxley Act of 2002 to increase the quality of financial statement audits for public and private companies True False

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Posted on May 30, 2024

1. An increase in control risk would have the following effects on required confidence and acceptable detection risk: Increase required confidence and increase acceptable detection

1. An increase in control risk would have the following effects on required confidence and acceptable detection risk:

Increase required confidence and increase acceptable detection risk.
Decrease required confidence and increase acceptable detection risk.
Increase required confidence and decrease acceptable detection risk.
Decrease required confidence and decrease acceptable detection risk.

2. The Sarbanes-Oxley Act of 2002 changed the auditing profession in significant ways including...

Auditors of public companies are now required to provide reasonable assurance as to whether financial statements are i/c/w GAAP.
Auditors of public companies are now allowed to provide consulting services to a client as long as the services are approved by the client's audit committee.
Auditors of public companies are now required to follow auditing standards established by the PCAOB.
Auditors of public companies are now required to be independent.

3. When income is variable, auditors use revenue from the prior year to determine quantitative materiality.

a. True

b. False

4. With respect to a set of financial statements, accounting is a generative process and auditing is an evaluative process.

True
False

5. The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act of 2002 to increase the quality of financial statement audits for public and private companies.