ACC 409 EXAM 1 QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
When and how was the AICPA formed?
In 1936 after the merging of "American Society of CPA's" and "The Institute of Public
Accountants"
AICPA responsibilities include:
- Standards for entry into the practice of public accounting
- A code of conduct that provides general guidance and conceptual framework for
standards for professional services provided by CPA's
- Detailed standards to help guide CPA's who perform professional services in areas
such as audit or tax
What are the seven characteristics of a profession?
- A body of specialized knowledge
- A formal Education Process
- Standards governing admission
- A code of ethics
- Recognized status by license or special designation
- A public Interest in the work performed by practitioners
- Recognition by members of their social obligation6
The CPA is obligated to three distinct constituencies:
,- Clients
- The profession
- Society
What are attestation services?
Attestation services are a special type of assurance service where the service provider
is evaluating or testing specific assertions or claims made by individuals or
organizations.
Do you need a CPA to provide a attestation service?
No
For the attestor's opinion about the assertion to be credible, the service provider
must have:
- required expertise
- objectivity
- ability to collect evidence
The AICPA has five major sections, which are:
- Audit Standards
- Attestation Standards
- Compilation and Review Standards
- Tax Standards
- Consulting Standards
In the global standard environment, the CPA will look to ________, _______ , or
________ for guidance
IAASB, ASB, PCAOB
, The auditor enhances the confidence of financial statement users by
expressing an opinion as to whether the financial statements are presented fairly in
accordance with the appropriate financial reporting framework.
The Auditor must obtain __________ __________ to make sure that the financial
statements as a whole are free from material misstatement to conclude that
financial statements are presented fairly
reasonable assurance
The Materiality Concept
must be applied in planning and performing the audit and in evaluating the effect of
identified misstatements on the financial statements
Auditors are responsible for:
- having appropriate competence and capabilities to perform the audit
- complying with relevant ethical requirements
- maintaining professional skepticism throughout the planning and performance of the
audit
The order of the audit decision process is:
1. Preliminary Engagement activities
2. Risk assessment
3. Control Testing
4. Substantive Testing
5. Final report and review
Preliminary Engagement Activities
COMPLETE SOLUTIONS GRADED A++
When and how was the AICPA formed?
In 1936 after the merging of "American Society of CPA's" and "The Institute of Public
Accountants"
AICPA responsibilities include:
- Standards for entry into the practice of public accounting
- A code of conduct that provides general guidance and conceptual framework for
standards for professional services provided by CPA's
- Detailed standards to help guide CPA's who perform professional services in areas
such as audit or tax
What are the seven characteristics of a profession?
- A body of specialized knowledge
- A formal Education Process
- Standards governing admission
- A code of ethics
- Recognized status by license or special designation
- A public Interest in the work performed by practitioners
- Recognition by members of their social obligation6
The CPA is obligated to three distinct constituencies:
,- Clients
- The profession
- Society
What are attestation services?
Attestation services are a special type of assurance service where the service provider
is evaluating or testing specific assertions or claims made by individuals or
organizations.
Do you need a CPA to provide a attestation service?
No
For the attestor's opinion about the assertion to be credible, the service provider
must have:
- required expertise
- objectivity
- ability to collect evidence
The AICPA has five major sections, which are:
- Audit Standards
- Attestation Standards
- Compilation and Review Standards
- Tax Standards
- Consulting Standards
In the global standard environment, the CPA will look to ________, _______ , or
________ for guidance
IAASB, ASB, PCAOB
, The auditor enhances the confidence of financial statement users by
expressing an opinion as to whether the financial statements are presented fairly in
accordance with the appropriate financial reporting framework.
The Auditor must obtain __________ __________ to make sure that the financial
statements as a whole are free from material misstatement to conclude that
financial statements are presented fairly
reasonable assurance
The Materiality Concept
must be applied in planning and performing the audit and in evaluating the effect of
identified misstatements on the financial statements
Auditors are responsible for:
- having appropriate competence and capabilities to perform the audit
- complying with relevant ethical requirements
- maintaining professional skepticism throughout the planning and performance of the
audit
The order of the audit decision process is:
1. Preliminary Engagement activities
2. Risk assessment
3. Control Testing
4. Substantive Testing
5. Final report and review
Preliminary Engagement Activities
