Auditing & Attestation Mini Exam 4 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. What is required before issuing an unmodified audit opinion under GAAS?

   • No material scope limitations
   • Sufficient appropriate audit evidence obtained
   • Financial statements are presented in accordance with the applicable framework
   • All of the above

2. What is required to accept a compilation engagement for a nonpublic company?

   • Auditor independence
   • Understanding with management regarding responsibilities
   • Issuance of an audit opinion
   • Testing of internal controls

3. What distinguishes a review engagement from an audit?

   • A review provides reasonable assurance
   • A review uses inquiry and analytical procedures only
   • A review requires substantive testing
   • A review results in an audit opinion

4. What must a PCAOB audit report for a public company include?

   • Critical audit matters
   • Auditor tenure disclosure
   • Reference to PCAOB standards
   • All of the above

5. Which is a component of internal control over financial reporting?

   • Control environment
   • Information and communication
   • Monitoring activities
   • All of the above

6. Which of the following is NOT considered an audit procedure?

   • Inspection
   • Reperformance
   • Confirmation
   • Estimation

7. When auditing a company involved in significant litigation, what is the auditor’s primary focus?

   • Auditor independence
   • Contingent liabilities and disclosures
   • Fee arrangements
   • Internal audit structure

8. Which of the following is a principle of the AICPA Code of Professional Conduct?

   • Integrity
   • Objectivity and independence
   • Due care
   • All of the above

9. What is the auditor’s responsibility regarding noncompliance with laws and regulations?

   • Detect all instances of noncompliance
   • Design procedures to detect material noncompliance
   • Report all noncompliance to regulators
   • Prevent noncompliance

10. What helps ensure independence under PCAOB standards?

    • No direct financial interest in the client
    • Restrictions on certain non-audit services
    • Mandatory partner rotation
    • All of the above