STRAYER ACC403 QUIZ 3

2 out of 2 points

Correct

If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

Question 2

2 out of 2 points

Correct

Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

Question 3

2 out of 2 points

Correct

Which of the following most accurately describes constructive fraud?

Question 4

2 out of 2 points

Correct

The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

Question 5

2 out of 2 points

Correct

A(n) ________ failure occurs when an auditor issues an erroneous opinion because it failed to comply with requirements of auditing standards.

Question 6

2 out of 2 points

Correct

"Absence of reasonable care that can be expected of a person in a set of circumstances" defines:

Question 7

2 out of 2 points

Correct

In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

Question 8

2 out of 2 points

Correct

Which of the following most accurately describes fraud?

Question 9

2 out of 2 points

Correct

The principal issue in cases involving alleged negligence is usually:

Question 10

2 out of 2 points

Correct

Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:

Question 11

2 out of 2 points

Correct

The Foreign Corrupt Practices Act (FCPA) of 1977:

Question 12

2 out of 2 points

Correct

In the auditing environment, failure to meet auditing standards is often:

Question 13

2 out of 2 points

Correct

In the performance of an audit, a CPA:

Question 14

2 out of 2 points

Correct

A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):

Question 15

0 out of 2 points

Incorrect

Which of the following auditor's defenses usually means nonreliance on the financial statements by the user?

Question 16

2 out of 2 points

Correct

The objective of an audit of the financial statements is an expression of an opinion on:

Question 17

2 out of 2 points

Correct

When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:

Question 18

2 out of 2 points

Correct

Which of the following assertions is described as "this assertion addresses whether all transactions that should be included in the financial statements are in fact included"?

Question 19

2 out of 2 points

Correct

An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:

Answer

Question 20

2 out of 2 points

Correct

A questioning mindset:

Question 21

2 out of 2 points

Correct

The cycle approach to auditing:

Question 22

2 out of 2 points

Correct

If a client has violated federal tax laws:

Question 23

2 out of 2 points

Correct

Which of the following would most likely be deemed a direct-effect illegal act?

Question 24

2 out of 2 points

Correct

In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

Question 25

2 out of 2 points

Correct

In testing for cutoff, the objective is to determine:

Question 26

2 out of 2 points

Correct

When an auditor knows that an illegal act has occurred, she must:

Question 27

2 out of 2 points

Correct

Which of the following statements is the most correct regarding errors and fraud?

Question 28

2 out of 2 points

Correct

The most important general ledger account included in and affecting several cycles is the:

Answer

Question 29

2 out of 2 points

Correct

The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:

Question 30

2 out of 2 points

Correct

Management assertions are: