Case Study

Auditing, Attestation, and Assurance

1. The single feature that most clearly distinguishes auditing, attestation, and assurance is

a. Type of service.

b. Training required to perform the service.

c. Scope of services.

d. CPA’s approach to the service.

ANSWER: C

2. The primary goal of the CPA in performing the attest function is to

a. Detect fraud.

b. Examine individual transactions so that the auditor may certify as to their validity.

c. Determine whether the client's assertions are fairly stated.

d. Assure the consistent application of correct accounting procedures.

ANSWER: C

3. Internal auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency, effectiveness, and

a. Internal control.

b. Evaluation.

c. Accuracy.

d. Compliance.

ANSWER: D

4. Which of the following best describes the operational audit?

a. It requires the constant review by internal auditors of the administrative controls as they relate to operations of the company.

b. It concentrates on implementing financial and accounting control in a newly organized company.

c. It attempts and is designed to verify the fair presentation of a company's results of operations.

d. It concentrates on seeking out aspects of operations in which waste would be reduced by the introduction of controls.

ANSWER: D

5. The auditor's judgment concerning the overall fairness of

the presentation of financial position, results of

operations, and changes in financial position is applied

within the framework of

a. Generally accepted accounting principles.

b. Generally accepted auditing standards.

c. Internal control.

d. Information systems control....