8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
Chapterm0
2mProfessional m Standa
rds
Truem/mFalsemQuestions
1. Auditors mmaymbe mindependentminmfactmbutmnotmin depen dentminmappearance.
True m m False
2. AuditingmStandardsmissuedmbymthe mPCAOBmare mthe msolemsource mof mguidance mf
ormaudits m of mpublicmentities.
True m m False
3. Attestationmstandards mprovide mguidance mforma mwide mvarietymof mengage
ments m differentminmscope mthanmanmaudit.
True m m False
4. Generallymacceptedmauditingmstandards mmustmbe mfollowedmonmall
mauditm engagements.
True m m False
about:blank 1/151
,8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
5. The mreportingmprinciple mrelates mtoma mfirm's msystem mof mqualitymcontrolmcrit
eria mform conductingmanmaudit.
True m m False
6. Auditors mcannotmeffectivelymsatisfymthe mresponsibilities mprinciple mrequ irin gmdue m
care mif m theymhave mnotmalsomsatisfiedmthe mperformance mprinciple.
True m m False
7. Substantive mprocedures mperformedmbymthe mauditmteam mare mmostmcloselymrel
atedmtom the mriskmof mmaterialmmisstatement.
True m m False
8. Auditingmprocedures mare mthe msame mas mauditingmstandards.
True m m False
9. The mconceptmof mdue mcare mreflects mthe mneedmtomplanmandmperform mthe maudi
tmwithmanm appropriate mlevelmof mprofessionalmskepticism.
True m m False
about:blank 2/151
,8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
10. Undermthe mperformance mprinciple,mauditors mare mrequiredmt omprovi de mab
solute m assurance mthatmthe mclient's mfinancialmstatements mdomnotmcontain
mmaterialm misstatements.
True m m False
11. The mperformance mprinciple msets mforthmthe mqualitymcriteria mform con duct ingmanmaudit.
True m m False
12. Auditors mof mpublicmentities mregisteredmwithmthe mSecurities mandmExchange mCom
missionm are mrequiredmtomregistermwithmthe mPublicmCompanymAccountin gmOvers
ightmBoard.
True m m False
13. Controlmriskmis mthe mprobabilitymthatma mmaterialmmisstatementm(errormormfrau
d) mcouldm occurmandmnotmbe mpreventedmormdetectedm onma mtimelymbasis mby
mthe mauditors'm substantive mprocedures.
True m m False
14. The mwordmappropriatenessmrefers mtomthe mnumbermof mtransactions mormcompon
ents mof m anmaccountmbalance mexaminedmbymauditors.
True m m False
about:blank 3/151
, 8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
15. Tombe mconsideredmmaterial,manmitem mmustmbe mone mthatmwouldminfluence mthe
mdecisionm of mfinancialmstatementmusers.
True m m False
16. The mcontents mof mthe mauditors'mreportmare mguidedmbymthe mperformance mprin
ciple mof m GAAS.
True m m False
17. Anmunqualifiedmopinionmindicates mthatmthe mfinancialmstatements mpresentmthe me
ntity's m financialmcondition,mresults mof moperations,mandmcashmflows minmconf ormi
tymwithmGAAP.
True m m False
18. The mauditors'mreportmshouldmeithermcontainmanmexpressionmof mopi nionm onmthe mf
inancialm statements mtakenmas ma mwhole mormanmassertionmtomthe meffectmthatmanm
opinionmcannotmbe m expressed.
True m m False
19. Evidence mis mconsideredmappropriate mwhe nmitmis mbot hmvalidman dmrelevant.
True m m False
about:blank 4/151
M ank
Chapterm0
2mProfessional m Standa
rds
Truem/mFalsemQuestions
1. Auditors mmaymbe mindependentminmfactmbutmnotmin depen dentminmappearance.
True m m False
2. AuditingmStandardsmissuedmbymthe mPCAOBmare mthe msolemsource mof mguidance mf
ormaudits m of mpublicmentities.
True m m False
3. Attestationmstandards mprovide mguidance mforma mwide mvarietymof mengage
ments m differentminmscope mthanmanmaudit.
True m m False
4. Generallymacceptedmauditingmstandards mmustmbe mfollowedmonmall
mauditm engagements.
True m m False
about:blank 1/151
,8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
5. The mreportingmprinciple mrelates mtoma mfirm's msystem mof mqualitymcontrolmcrit
eria mform conductingmanmaudit.
True m m False
6. Auditors mcannotmeffectivelymsatisfymthe mresponsibilities mprinciple mrequ irin gmdue m
care mif m theymhave mnotmalsomsatisfiedmthe mperformance mprinciple.
True m m False
7. Substantive mprocedures mperformedmbymthe mauditmteam mare mmostmcloselymrel
atedmtom the mriskmof mmaterialmmisstatement.
True m m False
8. Auditingmprocedures mare mthe msame mas mauditingmstandards.
True m m False
9. The mconceptmof mdue mcare mreflects mthe mneedmtomplanmandmperform mthe maudi
tmwithmanm appropriate mlevelmof mprofessionalmskepticism.
True m m False
about:blank 2/151
,8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
10. Undermthe mperformance mprinciple,mauditors mare mrequiredmt omprovi de mab
solute m assurance mthatmthe mclient's mfinancialmstatements mdomnotmcontain
mmaterialm misstatements.
True m m False
11. The mperformance mprinciple msets mforthmthe mqualitymcriteria mform con duct ingmanmaudit.
True m m False
12. Auditors mof mpublicmentities mregisteredmwithmthe mSecurities mandmExchange mCom
missionm are mrequiredmtomregistermwithmthe mPublicmCompanymAccountin gmOvers
ightmBoard.
True m m False
13. Controlmriskmis mthe mprobabilitymthatma mmaterialmmisstatementm(errormormfrau
d) mcouldm occurmandmnotmbe mpreventedmormdetectedm onma mtimelymbasis mby
mthe mauditors'm substantive mprocedures.
True m m False
14. The mwordmappropriatenessmrefers mtomthe mnumbermof mtransactions mormcompon
ents mof m anmaccountmbalance mexaminedmbymauditors.
True m m False
about:blank 3/151
, 8/31/23,m12:38mP Auditingmassurancemservicesm5thmeditionmlouwers mtestmb
M ank
15. Tombe mconsideredmmaterial,manmitem mmustmbe mone mthatmwouldminfluence mthe
mdecisionm of mfinancialmstatementmusers.
True m m False
16. The mcontents mof mthe mauditors'mreportmare mguidedmbymthe mperformance mprin
ciple mof m GAAS.
True m m False
17. Anmunqualifiedmopinionmindicates mthatmthe mfinancialmstatements mpresentmthe me
ntity's m financialmcondition,mresults mof moperations,mandmcashmflows minmconf ormi
tymwithmGAAP.
True m m False
18. The mauditors'mreportmshouldmeithermcontainmanmexpressionmof mopi nionm onmthe mf
inancialm statements mtakenmas ma mwhole mormanmassertionmtomthe meffectmthatmanm
opinionmcannotmbe m expressed.
True m m False
19. Evidence mis mconsideredmappropriate mwhe nmitmis mbot hmvalidman dmrelevant.
True m m False
about:blank 4/151
