strayer ACC403 week 4 quiz 3

Question 1

2 out of 2 points

Correct

The principal issue to be resolved in cases involving alleged negligence is usually:

Question 2

2 out of 2 points

Correct

The laws that have been developed through court decisions are called:

Answer

Question 3

2 out of 2 points

Correct

The preferred defense in third party suits is:

Question 4

2 out of 2 points

Correct

To succeed in an action against the auditor, the client must be able to show that:

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

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 7

2 out of 2 points

Correct

The principal issue in cases involving alleged negligence is usually:

Answer

Question 8

2 out of 2 points

Correct

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

Question 9

2 out of 2 points

Correct

The Foreign Corrupt Practices Act (FCPA) of 1977:

Answer

Question 10

2 out of 2 points

Correct

Which of the following most accurately describes fraud?

Answer

Question 11

2 out of 2 points

Correct

In an action against a CPA in a jurisdiction that follows the Ultramares doctrine, lack of privity is a viable defense provided the plaintiff:

Answer

Question 12

2 out of 2 points

Correct

Fraud occurs when:

Answer

Question 13

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:

Answer

Question 14

2 out of 2 points

Correct

The expectation gap:

Answer

Question 15

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):

Answer

Question 16

2 out of 2 points

Correct

When an auditor believes that an illegal act may have occurred, the auditor should first:

Answer

Question 17

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"?

Answer

Question 18

2 out of 2 points

Correct

"The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:

Answer

Question 19

2 out of 2 points

Correct

In testing for cutoff, the objective is to determine:

Answer

Question 20

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:

Answer

Question 21

2 out of 2 points

Correct

If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:

Answer

Question 22

2 out of 2 points

Correct

Fraudulent financial reporting is most likely to be committed by whom?

Answer

Question 23

2 out of 2 points

Correct

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

Answer

Question 24

2 out of 2 points

Correct

A questioning mindset:

Answer

Question 25

2 out of 2 points

Correct

Which of the following is the auditor least likely to do when aware of an illegal act?

Answer

Question 26

2 out of 2 points

Correct

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

Answer

Question 27

2 out of 2 points

Correct

The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

Answer

Question 28

2 out of 2 points

Correct

Auditors accumulate evidence to:

Answer

Question 29

2 out of 2 points

Correct

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

Question 30

2 out of 2 points

Correct

The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the: