kindly find below objectives questions that i need help with Please correct answers only

1)

In a financial statement audit, the auditor

A)

determines whether the financial statements are stated in accordance with specified criteria.

B)

must have a thorough understanding of the entity and its environment.

C)

gathers evidence to determine whether the statements contain material errors or other misstatements.

D)

all of the above.

2)

The use of the Certified Public Accountant title is regulated by

A)

the federal government.

B)

the American Institute of Certified Public Accountants through the licensing departments of the tax and auditing committees.

C)

the Securities and Exchange Commission.

D)

state law through the licensing departments of each state.

3)

When auditing accounting data, auditors focus on

A)

determining if fraud has occurred.

B)

analyzing the financial information to be sure that it complies with government requirements.

C)

determining whether recorded information properly reflects the economic events that occurred during the accounting period.

D)

determining if taxable income has been calculated correctly.

4)

An accountant

A)

must have an understanding of the principles and rules that provide the basis for preparing the accounting information.

B)

must possess expertise in the accumulation of audit evidence.

C)

must be a CPA.

D)

must decide the number and types of items to test.

5)

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

A)

Securities and Exchange Commission.

B)

Accounting and Review Services Committee.

C)

Financial Accounting Standards Board.

D)

Professional Ethics Executive Committee.

6)

In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that

A)

the purpose of an audit is to prevent fraud.

B)

the internal control policies and procedures are developed by the auditors.

C)

management is responsible for the preparation of the financial statements.

D)

management can restrict the auditor's access to important information relevant to the financial statements.

7)

When assessing the risk of material misstatements in the financial statements,

A)

inadequate internal control procedures will mitigate client business risk.

B)

company management is responsible for determining materiality levels.

C)

GAAS specifies in detail how much and what types of evidence the auditor needs to obtain.

D)

the auditor must have an understanding of the client's business and industry.

8)

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

A)

Form 10-Q.

B)

Form 10-K.

C)

Form 8-K.

D)

Form S-1.

9)

When analyzing the various types of audit reports,

A)

companies will generally make the appropriate changes to their accounting records to avoid a qualification by the auditor.

B)

management is more concerned about a qualified report than a disclaimer report.

C)

an adverse report is issued when the auditor is unable to form an opinion on the financial statements.

D)

the unmodified opinion with an emphasis-of-matter paragraph is the most common type of report.

10)

When an auditor issues a qualified report due to a scope limitation an explanatory paragraph is normally added. Which, if any, of the following paragraphs are also modified?

A)

Introductory	Scope	Opinion
No	Yes	Yes

B)

Introductory	Scope	Opinion
Yes	Yes	Yes

C)

Introductory	Scope	Opinion
No	Yes	No

D)

Introductory	Scope	Opinion
Yes	Yes	No

11)

Misstatements must be compared with some measurement base before a decision can be made about materiality. A commonly accepted measurement base includes

A)

total assets.

B)

working capital.

C)

net income.

D)

all of the above.

12)

When accounting principles arenotconsistently applied, and the materiality level is immaterial, the auditor will issue a(n)

A)

adverse opinion.

B)

standard unmodified opinion.

C)

disclaimer opinion.

D)

unmodified opinion with an explanatory paragraph.

13)

When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership

A)

only for direct ownership.

B)

in all circumstances.

C)

under no circumstances.

D)

only for indirect ownership.

14)

Which of the following services isnotprohibited by the SEC whenever a CPA also audits the company?

A)

investment banker services

B)

bookkeeping services

C)

assisting the company in preparing certain SEC registration statements (e.g., 10-Q, 10-K)

D)

actuarial services

15)

Which of the following is an accurate statement?

A)

SEC rules prohibit ownership in audit clients by those persons who can influence the audit.

B)

PCAOB rules require a CPA firm, before its selection as the company's auditor to document all relationships between the firm and the company.

C)

Auditing standards detail the requirements that a CPA firm must follow when it is requested to provide an opinion on the application of accounting principles for a client of another CPA firm.

D)

All of the above are accurate statements.

16)

An example of an "indirect financial interest in a client" would be

A)

the covered member's ownership of a mutual fund that has an investment in the client.

B)

ownership of less than 10% of the client's stock by the covered members spouse.

C)

an ownership of less than 10% of the client's stock by a staff member who is not involved in the audit.

D)

All of the above are examples of an indirect financial interest in a client.

17)

The Sarbanes-Oxley Act of 2002 makes it a felony to destroy or create documents to impede or obstruct a federal investigation. Those provisions were adopted following which of the following legal cases?

A)

United States v. Andersen

B)

United States v. Simon

C)

ESM Government Securities v. Alexander Grant & Co.

D)

United States v. Natelli

18)

A major purpose of federal securities regulations is to

A)

establish the qualifications for accountants who are members of the profession.

B)

provide a set of uniform standards and tests for accountants, attorneys, and others who practice before the Securities and Exchange Commission.

C)

provide sufficient reliable information to the investing public who purchase securities in the marketplace.

D)

eliminate incompetent attorneys and accountants who participate in the registration of securities to be offered to the public.

19)

The Foreign Corrupt Practices Act (FCPA) of 1977

A)

requires auditors to file a report with the SEC if client's internal control system is inadequate.

B)

requires auditors to review client's internal control system in a manner which is thorough enough to judge whether client meets the requirements of the FCPA.

C)

requires SEC registrants to maintain a reasonably complete and accurate set of records and an adequate system of internal control.

D)

requires auditors to review and evaluate systems of internal control as a part of an audit.

20)

Under common law, a foreseen user would be treated the same as

A)

A primary beneficiary	A known third party
No	Yes

B)

A primary beneficiary	A known third party
No	No

C)

A primary beneficiary	A known third party
Yes	Yes

D)

A primary beneficiary	A known third party
Yes	No

21)

Which of the following statements isnottrue?

A)

Balance-related audit objectives are applied to both beginning and ending balances in balance sheet accounts.

B)

Transaction-related audit objectives are applied to classes of transactions.

C)

Balance-related audit objectives are applied to the ending balance in balance sheet accounts.

D)

Balance-related audit objectives are applied to ending account balances.

22)

The auditor is determining that the correct selling price was used for billing and that the quantity of goods shipped was the same as the quantity billed. She is gathering evidence about which transaction-related audit objective?

A)

accuracy

B)

existence

C)

completeness

D)

cut-off

23)

One of the characteristics of professional skepticism is ________, which is the conviction to decide for oneself, rather than accepting the claims of others.

A)

suspension of judgment

B)

interpersonal understanding

C)

self-esteem

D)

autonomy

24)

When the auditor identifies or suspects noncompliance with laws and regulations, the auditor

A)

should withdraw from the engagement.

B)

may disclaim an opinion on the basis of scope limitations if he is precluded by management from obtaining sufficient appropriate evidence.

C)

should discuss the matter with those whom they believe committed the illegal act.

D)

begin communication with the FASB in accordance with PCAOB regulations.

25)

Which of the following isnota correct combination of terms and related type of audit evidence?

A)

inquire inquiries of client

B)

recompute recalculation

C)

read documentation

D)

count physical examination

26)

A(n) ________ is a supporting schedule that supports a specific amount and is normally expected to tie the amount recorded in the client's records to another source of information.

A)

reconciliation of amounts

B)

summary of procedures

C)

informational document

D)

analysis

27)

A company's long-term solvency

A)

can be measured by the gross profit percentage.

B)

can be measured by the days to collect receivables ratio.

C)

depends on the success of its operations and on its ability to raise capital for expansion.

D)

depends on its ability to generate cash for the payment of dividends.

28)

Audit documentation

A)

is another term for the audit program.

B)

should identify the items tested when the audit procedures involve sampling of transactions or balances.

C)

should not be given to anyone outside the audit firm, even if a subpoena has been issued.

D)

does not aid in the preparation of the tax return since accounting and tax rules differ.

29)

Which is usually included in an engagement letter?

A)

The objectives of the engagement	Identification of the financial reporting framework used by management
No	Yes

B)

The objectives of the engagement	Identification of the financial reporting framework used by management
No	No

C)

The objectives of the engagement	Identification of the financial reporting framework used by management
Yes	Yes

D)

The objectives of the engagement	Identification of the financial reporting framework used by management
Yes	No

30)

Which is usually included in an engagement letter?

A)

Estimate of hours required to complete audit	Dollar estimate of fees to be billed to the client
No	No

B)

Estimate of hours required to complete audit	Dollar estimate of fees to be billed to the client
No	Yes

C)

Estimate of hours required to complete audit	Dollar estimate of fees to be billed to the client
Yes	No

D)

Estimate of hours required to complete audit	Dollar estimate of fees to be billed to the client
Yes	Yes

31)

Which is a liquidity activity ratio?

A)

return on assets

B)

profit margin

C)

inventory turnover

D)

times interest earned

32)

The first phase in planning an audit and designing an audit approach is to

A)

accept the client and perform initial audit planning.

B)

set the preliminary judgment of materiality.

C)

perform preliminary audit procedures.

D)

understand the client's business and industry.

33)

Which of the following is a correct statement?

A)

Performance materiality is part of the audit risk model.

B)

There is no relationship between materiality and risk in auditing.

C)

The combination of performance materiality and the audit risk model factors determines planned audit evidence.

D)

Risk is a measure of magnitude or size.

34)

To what extent do auditors typically rely on internal controls of their public company clients?

A)

infrequently

B)

never

C)

extensively

D)

only very little

35)

When using the audit risk model,

A)

auditors are only concerned with understating accounts.

B)

auditors find it relatively easy to measure the components of the model.

C)

auditors find it easy to measure the amount of evidence implied by a given planned detection risk.

D)

many auditors use broad and subjective measurement terms.

36)

When dealing with audit risk,

A)

auditors cannot accept any level of risk in performing the audit function.

B)

the audit risk model is only used for classes of transactions.

C)

most risks that auditors encounter are relatively easy to measure.

D)

the audit risk model helps the auditor to decide how much and what types of evidence to accumulate.

37)

An auditor uses ________ inquiry to corroborate or contradict prior information.

A)

informational

B)

assessment

C)

interrogative

D)

declarative

38)

Which of the following is an accurate statement regarding the misappropriation of assets?

A)

Asset misappropriation schemes are less common than fraudulent financial statement schemes.

B)

Management should not be concerned about minor misappropriations.

C)

In most cases, the amounts involved are material to the financial statements.

D)

Misappropriation of assets can easily increase in size over time and can lead to significant reputational harm.

39)

When the auditor identifies risk at the assertion level,

A)

the auditor may need to obtain audit evidence that is more reliable and relevant.

B)

the auditor may choose to conduct substantive testing during interim periods rather than at the end of the period.

C)

the auditor may decrease the sample size.

D)

both a and b

40)

Most frauds are detected by

A)

a confession by the fraudster.

B)

a tip.

C)

IT controls.

D)

law enforcement.

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