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Audit Overview

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

The single feature that most clearly distinguishes auditing, attestation, and assurance is

a)

Type of service.

b)

Training required to perform the service.

c)

Scope of services.

d)

CPA’s approach to the service.

2.

The subject matter of auditing consists of:

a)

Assertions.

b)

Established criteria.

c)

Evidence.

d)

Written reports.

3.

Which of the following represents a procedure the auditor may use because plausible relationships among financial

statement balances are expected to exist?

a)

Attributes testing

b)

Enterprise risk assessment

c)

Inherent tests of control

d)

Analytical review

4.

A summary of findings rather than assurance is most likely to be issued on which engagement?

a)

Agreed-upon procedures

b)

Compilation

c)

Examination

d)

Review

5.

Which one of the following is not a provider of assurance services?

a)

CPAs

b)

Internal auditors

c)

Governmental auditors

d)

PICPA

6.

Which of the following types of auditing is performed most commonly by CPAs for more than one client and on a

contractual basis?

a)

Internal auditing

b)

Income tax auditing

c)

External auditing

d)

Government auditing

7.

To maximize independence, the director of internal auditing should report to the

a)

Audit committee.

b)

Controller.

c)

Chief financial officer.

d)

Director of information systems.

8.

Which of the following criteria is unique to the independent auditor's attest function?

a)

General competence.

b)

Familiarity with the particular industry of each client.

c)

Due professional care.

d)

Independence.

9.

Which of the following is least likely to be comparable between similar corporations in the same industry line of business?

a)

Accounts receivable turnover

b)

Earnings per share

c)

Gross profit percent

d)

Return on assets before interest and taxes

10.

The auditor communicates the results of his or her work

through the medium of the

a)

Engagement letter

b)

Management letter

c)

Audit report

d)

Financial statements