Aud theo
Which of the following criteria is unique to the auditor's attest function? * a. General competence b. Familiarity with the particular O industry of which the auditor's client is part. c. Due professional care O d. Independence The audit process is * a. A special application of the O scientific method of inquiry O b. Regulated by the AICPA c. The only service a CPA is allowed O to perform by law O d. Performed only by CPAs.Accounting records least likely include a. The records of initial entries and supporting records. O b. The general and subsidiary ledgers c. Work sheets and spreadsheets D supporting cost allocations O d. Comparable data about competitors (benchmarking)When the documents contain both the audited financial statements and other information that are materially inconsistent with each other and the said information was obtained prior to the date of the auditor's report, which of the following must an auditor do?A. When revision of the audited financial statements is necessary O and management refuses to make the revision, the auditor must issue an unmodified opinion. B. When revision of the other information is necessary and O management refuses to make the revision, the auditor must withdraw from the engagement immediately C. When revision of the other information is necessary and O management refuses to make the revision, the auditor shall communicate this matter to those charged with governance. D. When revision of the other D information is necessary and management refuses to make the revision, the auditor may ignore itThis refers to the audit procedures that, in the auditor's judgment and based on the PSAs are deemed appropriate in the circumstances to achieve the objective of an audit. O a. Analytical procedures O b. Scope of an audit c. Audit sampling d. DocumentationThe essence of the attest function is to * 10 a. Detect fraud b. Examine individual transactions C so that the auditor can certify as to their validity. c. Determine whether the client's O financial statements are fairly stated. O d. Ensure the consistent application of correct accounting procedures.A CPA is most likely to refer to one or more of the three general auditing standards in determining O a. The nature of the CPA's auditing qualification. O b. The scope of the CPA's auditing procedures. O c. Requirements for the review of internal control. O d. Whether the CPA should undertake an audit engagement.When a CPA expresses an opinion on financial statements, his or her responsibilities extend to:* O a. The underlying wisdom of the client's management decision b. Whether the results of the client's operating decisions are fairly presented in the financial statements. c. Active participation in the O implementation of the advice given to the client O d. An ongoing responsibility for the client's solvency.When using the work of an auditor's expert, an auditor must: A Evaluate whether the auditor has O the necessary competence, capabilities and objectivity for the auditor's expert's purposes B. The auditor shall obtain a O sufficient understanding of the field of expertise of the auditor's expert. C. The auditor shall evaluate the O adequacy of the auditor's expert's work for the auditor's expert's purposes. O D. Both A and CWhich of the following is least likely included in an audit engagement letter? * O a. The objective of financial reporting O b. Management responsibility for the financial statements c. The form of any reports or other O communication of the results of the engagement. d. Arrangement concerning the involvement of other auditors or O experts in some aspects of the audit
