Auditing and Assurance

Ch2

Student: ___________________________________________________________________________

1.

The generally accepted auditing standards of field work include a requirement that the auditors obtain sufficient appropriate audit evidence. True False

2.

The auditors' report on a corporation's financial statements usually is addressed to the president of the company. True False

3.

The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. True False

4.

Partners in CPA firms usually have the responsibility for signing the audit report. True False

5.

An audit is more likely to detect tax evasion than violations of antitrust laws. True False

6.

The attestation standards do not supersede any of the generally accepted auditing standards. True False

7.

A peer review is generally performed by employees of the AICPA. True False

8.

If the auditors discover illegal acts by a client, they ordinarily must immediately resign from the engagement. True False

9.

An audit should be designed to provide reasonable assurance of detecting all illegal acts. True False

10. The pronouncements of the International Auditing Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company. True False

11. Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due

to: A. B. C. D. Option A Option B Option C Option D

12. Which of the following has the highest level of accounting authority within the "GAAP Hierarchy"? A. B. C. D. Authoritative body pronouncements. Pronouncements of bodies composed of expert accountants exposed for public comment. Pronouncements of bodies composed of expert accountants, not exposed for public comment. Pronouncements of the Federal Accounting Reserve Board....