ACC 562 Midterm Ch 1 - 3
Strayer
ACC 562 Advance Auditing
MIDTERM EXAM (CH 1 – 3)
Question 1
CPAs are licensed by the
Correct Answer: state's board of accountancy.
Question 2
The Certified Internal Auditor program is administered by the
Correct Answer: IIA.
Question 3
The objective of an operational audit is to
Correct Answer: evaluate the effectiveness and efficiency with which resources are employed.
Question 4
As it relates to an audit, materiality is
Correct Answer: determined based upon the importance to a user of the financial statements.
Question 5
Independent professional services that are provided on financial or other information that improve the quality of decision making are known as
Correct Answer: assurance services.
Question 6
An expectation of the public is that the auditor will recognize that the primary users of audit assurance are
Correct Answer: third-party users.
Question 7
The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the
Correct Answer:
PCAOB
Question 8
An audit which has as its purpose the evaluation of the economy and efficiency with which resources are employed is known as a(n)
Correct Answer: operational audit.
Question 9
Management of a company is responsible for
Correct Answer: preparing the financial statements.
Question 10
The audit agency for the U. S. Congress is the
Correct Answer:
GAO.
Question 11
An audit committee must be comprised of outside directors and at least one outside financial expert. Which of the following is considered an outside director?
Correct Answer:
A director who is not a member of management and has no other relationship to the organization.
Question 12
A proper system of corporate governance is one that demands
Correct Answer: accountability back through the system to the shareholders.
Question 13
Section 304 of the
ACC 562 Advance Auditing
MIDTERM EXAM (CH 1 – 3)
Question 1
CPAs are licensed by the
Correct Answer: state's board of accountancy.
Question 2
The Certified Internal Auditor program is administered by the
Correct Answer: IIA.
Question 3
The objective of an operational audit is to
Correct Answer: evaluate the effectiveness and efficiency with which resources are employed.
Question 4
As it relates to an audit, materiality is
Correct Answer: determined based upon the importance to a user of the financial statements.
Question 5
Independent professional services that are provided on financial or other information that improve the quality of decision making are known as
Correct Answer: assurance services.
Question 6
An expectation of the public is that the auditor will recognize that the primary users of audit assurance are
Correct Answer: third-party users.
Question 7
The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the
Correct Answer:
PCAOB
Question 8
An audit which has as its purpose the evaluation of the economy and efficiency with which resources are employed is known as a(n)
Correct Answer: operational audit.
Question 9
Management of a company is responsible for
Correct Answer: preparing the financial statements.
Question 10
The audit agency for the U. S. Congress is the
Correct Answer:
GAO.
Question 11
An audit committee must be comprised of outside directors and at least one outside financial expert. Which of the following is considered an outside director?
Correct Answer:
A director who is not a member of management and has no other relationship to the organization.
Question 12
A proper system of corporate governance is one that demands
Correct Answer: accountability back through the system to the shareholders.
Question 13
Section 304 of the