Auditing & Attestation Mini Exam 6 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. Which is part of internal control over financial reporting?

   • Control environment
   • Risk assessment
   • Control activities
   • All of the above

2. Which of the following is NOT an audit procedure?

   • Inquiry
   • Observation
   • Confirmation
   • Assumption

3. When auditing a company involved in litigation, what is the auditor’s primary concern?

   • Client reputation
   • Auditor expertise
   • Contingent liabilities
   • Fee arrangements

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

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

5. What is the auditor’s responsibility regarding illegal acts?

   • Detect all illegal acts
   • Design procedures to detect material illegal acts
   • Report all illegal acts to authorities
   • Prevent illegal acts

6. What is required to maintain independence under PCAOB rules?

   • No financial interest in the client
   • Restrictions on certain non-audit services
   • Partner rotation requirements
   • All of the above

7. After identifying a significant risk related to estimates, what should the auditor do?

   • Increase testing sample size only
   • Perform risk-specific audit procedures
   • Rely solely on internal controls
   • Issue a modified opinion immediately

8. How do AICPA and PCAOB standards differ?

   • PCAOB requires more detailed documentation
   • AICPA requires longer retention periods
   • PCAOB applies only to nonpublic entities
   • No differences exist

9. What is the auditor’s responsibility for subsequent events?

   • Adjust financial statements for all events
   • Identify events requiring adjustment or disclosure
   • Disclose all events
   • Ignore immaterial events

10. Which of the following is a control activity?

    • Risk assessment
    • Monitoring
    • Authorization of transactions
    • Information systems