ACC 562 Advance Auditing
MIDTERM EXAM (CH 1 – 3)
CPAs are licensed by the
state's board of accountancy.
The Certified Internal Auditor program is administered by the
The objective of an operational audit is to
evaluate the effectiveness and efficiency with which resources are employed.
As it relates to an audit, materiality is
determined based upon the importance to a user of the financial statements.
Independent professional services that are provided on financial or other information that improve the quality of decision making are known as
An expectation of the public is that the auditor will recognize that the primary users of audit assurance are
The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the
An audit which has as its purpose the evaluation of the economy and efficiency with which resources are employed is known as a(n)
Management of a company is responsible for
preparing the financial statements.
The audit agency for the U. S. Congress is the
An audit committee must be comprised of outside directors and at least one outside financial expert. Which of the following is considered an outside director?
A director who is not a member of management and has no other relationship to the organization.
A proper system of corporate governance is one that demands
accountability back through the system to the shareholders.
Section 304 of the Sarbanes-Oxley Act requires executives to forfeit any bonus or incentive-based pay or profits (including stock options) from the sale of stock received in the twelve months prior to an earnings restatement. This is often referred to as:
claw back provision
Which one of the following will provide auditing standards of public companies?
The responsibility for operating an enterprise is delegated to the:
The Sarbanes-Oxley Act of 2002 requires which of the following?
All publicly held companies will provide a report on internal control over financial reporting.
The audit client of the CPA firm is:
the audit committee.
The Public Company Accounting Oversight Board was established by:
an act of Congress.
Audit committees are required to have what person in its composition?
A financial expert
Corporate governance is a process by which the owners and creditors of an organization
exert control and require accountability.
In determining the types of activities, engagements and interactions an auditor should have with a client, the CPA and the audit firm must do which of the following?
assess all of their relationships with every client to ensure that independence is intact.
Independence is not required for which of the following types of services?
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