A basic objective of a CPA firm is to provide professional services to conform with professional standards. Reasonable assurance of achieving this basic objective is provided through
a. Continuing professional education.
b. A system of quality control.
c. Compliance with Auditing Standards Board reporting requirements.
d. A system of peer review.
Answer: B
CPA Exam
- Under which of the following circumstances would an auditor be most likely to intensify an examination of a $500 imprest petty cash fund?
- A typical objective of an operational audit is for the auditor to
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- Which of the following would detect an understatement of a purchase discount?
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- Which of the following procedures most likely could assist an auditor in identifying related-party transactions?
- Which of the following steps should an auditor perform first to determine the existence of related parties?
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- Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement audit?
- Which of the audit procedures listed below would be least likely to disclose the existence of related-party transactions of a client during the period under audit?
- Which of the following is generally included or shown in the auditor's working papers for the audit of a nonpublic company?
- During the first part of the current fiscal year, the client company began dealing with certain customers on a consignment basis. Which of the following audit procedures is least likely to bring this new fact to the auditor's attention?
- An auditor who is engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to
- An example of a transaction which may be indicative of the existence of related parties is
- Which of the following items would most likely require an adjustment to the financial statements for the year ended December 31, year 1?
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- Which of the following management assertions is an auditor most likely testing if the audit objective states that all inventory on hand is reflected in the ending inventory balance?
- "In connection with an audit of our financial statements, management has prepared, and furnished to our auditors a description and evaluation of certain contingencies." The forgoing passage most likely is from a(n)
- Which of the following analyses appearing in a predecessor's working papers is the successor auditor least likely to be interested in reviewing?
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