ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
1. Audit Services services by an independent CPA that provide financial
statement users with (1) an opinion on whether the fi-
nancial statements are presented fairly, in all material
respects, in accordance with an applicable financial re-
porting framework and (2) an opinion on the effectiveness
of ICFR, which enhance the degree of confidence that
intended users can place in the financial statements
2. Attestation Ser- Services performed when an independent practitioner, or
vices CPA, is engaged to issue a report on subject matter that
is the responsibility of another party
3. Relationship of Audit - highest quality/reasonable assurance (i.e., histor-
assurance, attes- ical financial statements)
tation, and audit- Attestation - mid quality/limited assurance (i.e., review
ing services from of historical financial statements, examination of internal
most to least im- controls, review of financial forecast)
proved of quality Assurance - lowest quality (i.e., compilation of histori-
(i.e., assurance) cal financial statements, website security, IT operations,
non-financial information)
4. Assurance Ser- independent professional services that improve the qual-
vices ity of information, or its context, for decision makers
5. Applicable finan- the set of standards used in preparing the historical finan-
cial reporting cial statements (i.e., GAAP, IFRS, or federal income tax
framework refers basis of accounting)
to
6. Independent im- someone who was not involved with the creation of the
plies that the ser- information and who is objective in the evaluation of the
vice is performed information
by
7. Quality refers to the relevance and realiability of the information
8. Information
refers to
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
subject matter that can be financial or nonfinancial, his-
torical or prospective, standalone data or entire systems
of data, internal or external to a company
9. CPAs are the Licensed accounting professionals in the US.
only _________ Licenses are issued at the state level, not federal
accounting
professionals in
the US and the
________ are
issued at the
____________
level
10. A state board of a licence to practice after all three Es have been earned
accountancy will
only issue
11. CPA Es Education, Exam, and Experience
12. Public compa- an annual financial statement audit and an ICFR audit
nies, or issuers,
in the US are re-
quired by feder-
al government to
have
13. Private compa- Not required by law, other interested users may request
nies, or non-is- audited financial statements (i.e., lenders)
suers, are
_______ to have
an annual audit
by federal gov-
ernment, but
14. ICFR Internal Control over Financial Reporting
15. Integrated Audit
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
An audit that combines the financial statement audit with
an audit of the effectiveness of ICFR
16. The limitations 1. the nature of financial reporting
of an audit are 2. the nature of audit procedures
cause by 3. the need for the audit to be conducted within a reason-
able period of time at a reasonable cost
17. The nature of fi- the use of judgment when preparing financial statements
nancial reporting due to the subjectivity required when arriving at account-
refers to ing estimates and judgment required when selecting and
applying accounting methods
18. The nature of Reliance on evidence provided by the client and its man-
audit procedures agements, as well as the concept of materiality
refers to
19. Materiality the ability of information to influence decisions that users
make on the basis of the financial information of a specific
reporting entity
20. Compliance Au- an audit to determine whether the entity has conformed
dit with regulations, rules, or processes
21. Operational (Per- An assessment of the economy, efficiency, and effective-
formance) Audit ness of an organization's operations
22. Operational Au- Economy refers to the cost of inputs
dit economy, effi- Efficiency refers to the relationship between inputs and
ciency, and effec- outputs
tiveness refer to Effectiveness refers to the achievement of certain goals
or the production of a certain level of outputs
23. Internal Audit A function within an entity which generally evaluates and
improves risk management, internal control procedures,
and elements of the governance process
24. Those charged
with governance
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
Persons with responsibility for overseeing the strategic
direction of the entity and the obligations related to the
accountability of the entity
25. The external au- Internal auditors when evaluating the evidence needed to
ditor may rely on form an opinion on the financial statements or on ICFR
the work done by
26. Financial State- Investors, suppliers, customers, lenders, employees, gov-
ment Users in- ernments, and the general public
clude
27. Sources of de- Remoteness (users do not have access to the company)
mand for au- Complexity (amounts affected by significant estimates
dit and assur- requiring knowledge and experience to evaluate)
ance services Competing incentives (determine biased information)
Reliability
28. Management is 1. Ensuring the information included in the financial state-
responsible for ments is presented fairly and complies with the applicable
financial reporting frameowrk
2. Designing, implementing, and maintaining internal con-
trol relevant to the preparation and fair presentation of the
financial statements
3. Providing the auditor with access to all records, doc-
umentation, and personnel relevant to the preparation
and fair presentation of the financial statements, and any
additional information the auditors may consider relevant
to complete the audit
Also, mgmt is responsible for making estimates for some
f/s items and selecting appropriate accounting policies
within the applicable financial reporting framework
29. Auditors are re- 1. Conducting the audit in accordance with the appropri-
sponsible for ate auditing standards
2. Planning and performing the audit with professional
skepticism
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
1. Audit Services services by an independent CPA that provide financial
statement users with (1) an opinion on whether the fi-
nancial statements are presented fairly, in all material
respects, in accordance with an applicable financial re-
porting framework and (2) an opinion on the effectiveness
of ICFR, which enhance the degree of confidence that
intended users can place in the financial statements
2. Attestation Ser- Services performed when an independent practitioner, or
vices CPA, is engaged to issue a report on subject matter that
is the responsibility of another party
3. Relationship of Audit - highest quality/reasonable assurance (i.e., histor-
assurance, attes- ical financial statements)
tation, and audit- Attestation - mid quality/limited assurance (i.e., review
ing services from of historical financial statements, examination of internal
most to least im- controls, review of financial forecast)
proved of quality Assurance - lowest quality (i.e., compilation of histori-
(i.e., assurance) cal financial statements, website security, IT operations,
non-financial information)
4. Assurance Ser- independent professional services that improve the qual-
vices ity of information, or its context, for decision makers
5. Applicable finan- the set of standards used in preparing the historical finan-
cial reporting cial statements (i.e., GAAP, IFRS, or federal income tax
framework refers basis of accounting)
to
6. Independent im- someone who was not involved with the creation of the
plies that the ser- information and who is objective in the evaluation of the
vice is performed information
by
7. Quality refers to the relevance and realiability of the information
8. Information
refers to
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
subject matter that can be financial or nonfinancial, his-
torical or prospective, standalone data or entire systems
of data, internal or external to a company
9. CPAs are the Licensed accounting professionals in the US.
only _________ Licenses are issued at the state level, not federal
accounting
professionals in
the US and the
________ are
issued at the
____________
level
10. A state board of a licence to practice after all three Es have been earned
accountancy will
only issue
11. CPA Es Education, Exam, and Experience
12. Public compa- an annual financial statement audit and an ICFR audit
nies, or issuers,
in the US are re-
quired by feder-
al government to
have
13. Private compa- Not required by law, other interested users may request
nies, or non-is- audited financial statements (i.e., lenders)
suers, are
_______ to have
an annual audit
by federal gov-
ernment, but
14. ICFR Internal Control over Financial Reporting
15. Integrated Audit
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
An audit that combines the financial statement audit with
an audit of the effectiveness of ICFR
16. The limitations 1. the nature of financial reporting
of an audit are 2. the nature of audit procedures
cause by 3. the need for the audit to be conducted within a reason-
able period of time at a reasonable cost
17. The nature of fi- the use of judgment when preparing financial statements
nancial reporting due to the subjectivity required when arriving at account-
refers to ing estimates and judgment required when selecting and
applying accounting methods
18. The nature of Reliance on evidence provided by the client and its man-
audit procedures agements, as well as the concept of materiality
refers to
19. Materiality the ability of information to influence decisions that users
make on the basis of the financial information of a specific
reporting entity
20. Compliance Au- an audit to determine whether the entity has conformed
dit with regulations, rules, or processes
21. Operational (Per- An assessment of the economy, efficiency, and effective-
formance) Audit ness of an organization's operations
22. Operational Au- Economy refers to the cost of inputs
dit economy, effi- Efficiency refers to the relationship between inputs and
ciency, and effec- outputs
tiveness refer to Effectiveness refers to the achievement of certain goals
or the production of a certain level of outputs
23. Internal Audit A function within an entity which generally evaluates and
improves risk management, internal control procedures,
and elements of the governance process
24. Those charged
with governance
, ACCT 3222-3, EXAM 1 NEWEST 2024 ACTUAL EXAM 270 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREAD
GRADED A+
Study online at https://quizlet.com/_fw0saw
Persons with responsibility for overseeing the strategic
direction of the entity and the obligations related to the
accountability of the entity
25. The external au- Internal auditors when evaluating the evidence needed to
ditor may rely on form an opinion on the financial statements or on ICFR
the work done by
26. Financial State- Investors, suppliers, customers, lenders, employees, gov-
ment Users in- ernments, and the general public
clude
27. Sources of de- Remoteness (users do not have access to the company)
mand for au- Complexity (amounts affected by significant estimates
dit and assur- requiring knowledge and experience to evaluate)
ance services Competing incentives (determine biased information)
Reliability
28. Management is 1. Ensuring the information included in the financial state-
responsible for ments is presented fairly and complies with the applicable
financial reporting frameowrk
2. Designing, implementing, and maintaining internal con-
trol relevant to the preparation and fair presentation of the
financial statements
3. Providing the auditor with access to all records, doc-
umentation, and personnel relevant to the preparation
and fair presentation of the financial statements, and any
additional information the auditors may consider relevant
to complete the audit
Also, mgmt is responsible for making estimates for some
f/s items and selecting appropriate accounting policies
within the applicable financial reporting framework
29. Auditors are re- 1. Conducting the audit in accordance with the appropri-
sponsible for ate auditing standards
2. Planning and performing the audit with professional
skepticism
