Problem 1: Which of the following best describes the relationship between assurance services and attest services?
a. While attest services involve financial data, assurance services involve nonfinancial data.
b. While attest services require objectivity, assurance servies do not.
c. Both attest and assurance services require independence.
d. Attest and assurance services are different terms referring to the same types of services.
Problem 2: Which of the following does teh fASB consider a source of nonauthoritative guidance for use when there is no authoritative guidance available?
a. The FASB Codification
b. FASB Concepts Statements
c. SEC rules
d SEC interpretive Releases
Problem 3: Financial statment audits performed under PCAOB requirements are designed to provide which types of assurance with respect to the detection of material misstatements due to errors or fraud?
a. Reasonable and Absolute
b. Reasonable
c Absolute
d Neither
Problem 4: Which of the following is not explicitly included in a standard report for a nonpublic company?
a. the CPA's opinion that the financial statements comply with generally accepted accounting practices
b. That generally accepted auditing standards were followed during the audit
c. That internal control of the client was satisfactory
d. An identification of the financial statements audited.
Problem 5: The general group of the 10 PCAOB Auditing Standards require that:
a. The auditors maintain an independent mental attitude
b. The audit be conducted in conformity with general accepted accounting principles
c. Assistants, if any he properly supervised
d. The auditors obtain an understanding of internal control.
Problem 6: Which AICPA quality contorl standard would most likely be satisfied when a CPA firm maintains records indicating which partners or employees of the firm were previously employed by the CPA firm's clients?
a. Profession relationship
b. Engagement prerformance
c. Relevant ethical requirments
d. Monitoring.
Problem 7: An audit provides resonable assurance of detecting materal:
a. Fraudulent Financial Reporting and Missappropriation of assets
b. Fraudulent Finanical Reporting
c. Missappropriation of assets
d. Neither