ACCY 131 ACTUAL AND COMPLETE EXAM 1
WITH QUESTIONS AND ANSWERS
if an auditor had a substantial stock
investment in a client they would - answer-
lack independence
the attest function - answer-includes the
preparation of written report of the CPA's
findings
GAAP are distinguicshed from GAAS in that -
answer-GAAP are principles for presentation
of financial statements and underlying
transactions, while GAAS are the standards
auditors should follow ehn conducting an
audit
applicable to a 1900 audit: - answer-(a)
,Complete review of all transactions.
(c)
attention concentrated on balance sheet.
(f)
Auditing procedures to prevent or detect
fraud on the part of all employees and
managers.
(l)
Bankers and short-term creditors
as principal users of audit reports.
applicable to a current audit - answer-(b)
Assessment of internal control.
(d)
Emphasis upon use of sampling techniques.
(e)
,Determination of fairness of financial
statements.
(g)
Registration statement.
(h)
Fairness of reported earnings per share.
(i)
Influence of stock exchanges and the
investing public upon the use of independent
auditors.
(j)
Concern about fraudulent financial reporting.
(k)
Generally accepted auditing standards.
(m)
Pressure for more disclosure.
(n)
, Auditing for compliance with laws and
regulations.
The form of attestation that provides the
highest form of assurance is - answer-
examination
audits of financial statements include an
expression of a conclusion about which
financial statement characteristic? - answer-
reliability
A review of a company's financial statements
by a CPA firm - answer-is designed to provide
limited assurance
The Sarbanes Oxley Act included provisions
establishing the - answer-PCAOB
public company accounting oversight board
WITH QUESTIONS AND ANSWERS
if an auditor had a substantial stock
investment in a client they would - answer-
lack independence
the attest function - answer-includes the
preparation of written report of the CPA's
findings
GAAP are distinguicshed from GAAS in that -
answer-GAAP are principles for presentation
of financial statements and underlying
transactions, while GAAS are the standards
auditors should follow ehn conducting an
audit
applicable to a 1900 audit: - answer-(a)
,Complete review of all transactions.
(c)
attention concentrated on balance sheet.
(f)
Auditing procedures to prevent or detect
fraud on the part of all employees and
managers.
(l)
Bankers and short-term creditors
as principal users of audit reports.
applicable to a current audit - answer-(b)
Assessment of internal control.
(d)
Emphasis upon use of sampling techniques.
(e)
,Determination of fairness of financial
statements.
(g)
Registration statement.
(h)
Fairness of reported earnings per share.
(i)
Influence of stock exchanges and the
investing public upon the use of independent
auditors.
(j)
Concern about fraudulent financial reporting.
(k)
Generally accepted auditing standards.
(m)
Pressure for more disclosure.
(n)
, Auditing for compliance with laws and
regulations.
The form of attestation that provides the
highest form of assurance is - answer-
examination
audits of financial statements include an
expression of a conclusion about which
financial statement characteristic? - answer-
reliability
A review of a company's financial statements
by a CPA firm - answer-is designed to provide
limited assurance
The Sarbanes Oxley Act included provisions
establishing the - answer-PCAOB
public company accounting oversight board
