UTS Audit 1 - April 2023

Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called

• Finance

• Auditing

• Accounting

• Economics

In the audit of historical financial statements, which of the following accounting bases is the most common?

• Regulatory accounting principles

• Cash basis of accounting

• Generally accepted accounting principles

• Liquidation basis of accounting

Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

• Accounting and bookkeeping service

• Attestation service

• Assurance service

• Tax service

Three common types of attestation services are:

• Audits, reviews, and “other” attestation services

• Audits, verifications, and “other” attestation services

• Reviews, verifications, and “other” attestation services

• Audits, reviews, and verifications

The organization that is responsible for providing oversight for auditors of public companies is called the ________.

• Auditing Standards Board

• American Institute of Certified Public Accountants

• Public Oversight Board

• Public Company Accounting Oversight Board

Which one of the following is not one of the three General Standards?

• Proper planning and supervision

• Independence of mental attitude

• Adequate training and proficiency

• Due professional care

Which one of the following is not a Field Work Standard?

• Adequate planning and supervision

• Due professional care

• Understand the entity and its environment including internal control

• Sufficient appropriate audit evidence

The General Standards stress the importance of

• Evidence accumulation

• Personal qualities the auditor should possess

• Communicating the auditor’s findings to the reader

• General supervision of the audit

The generally accepted auditing standard that requires “Adequate technical training and proficiency” is normally interpreted as requiring the auditor to have

• Formal education in auditing and accounting

• Worked for an entity similar to the entity being audited

• Independence in mental attitude

• A graduate degree in a business field

Which of the following statements most accurately captures the intent of the standards of field work?

• Field work standards are primarily concerned with personal attributes necessary during the conduct of the audit

• Field work standards provide extensive guidance regarding the conduct of an audit

• Field work standards are primarily directed at the auditor’s planning, understanding of internal control, and evidence accumulation

• Field work standards are primarily concerned with the conduct of substantive testing as opposed to testing of internal controls