Which of the following criteria is unique to the independent auditor's attest function? a. Independence. b. General competence. c. Due professional care. d. Familiarity with the particular industry of each client.

Which of the following criteria is unique to
the independent auditor's attest function?
a. Independence.
b. General competence.
c. Due professional care.
d. Familiarity with the particular industry of
each client.
by

1 Answer

Answer :

Independence.
by

Related questions

The principle professional competence and due care imposes which of the following obligations on professional accountants? a. To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service. b. To comply with relevant laws and regulations and avoid any action that discredits the profession. c. Not to override or compromise his professional or business judgment because of bias, conflict of interest or undue influence of others. d. To be fair and truthful.

Description : The principle professional competence and due care imposes which of the following obligations on professional accountants? a. To maintain professional knowledge and skill at the level required to ensure that a ... , conflict of interest or undue influence of others. d. To be fair and truthful.

Last Answer : To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service.

The following are fundamental principles that are mostly applied when performing procedures on acceptance of new clients except: a. Confidentiality. b. Professional competence. c. Independence. d. Professional competence and due care.

Description : The following are fundamental principles that are mostly applied when performing procedures on acceptance of new clients except: a. Confidentiality. b. Professional competence. c. Independence. d. Professional competence and due care.

Last Answer : Independence

The following procedures relate to Skills and Competence, except a. Identify criteria which will be considered in evaluating individual performance and expected proficiency. b. Provide procedures for maintaining the firm's standards of quality for the work performed. c. Establish qualifications and guidelines for evaluating potential hirees at each professional level. d. Provide, to the extent necessary, programs to fill the firm's needs for personnel with expertise in specialized and industries.

Description : The following procedures relate to Skills and Competence, except a. Identify criteria which will be considered in evaluating individual performance and expected proficiency. b. Provide procedures for ... to fill the firm's needs for personnel with expertise in specialized and industries.

Last Answer : Provide procedures for maintaining the firm's standards of quality for the work performed.

Similar to auditors in the CPA realm, internal auditors also strive to possess: a. Independence b. Competence c. Objectivity d. All of the above

Description : Similar to auditors in the CPA realm, internal auditors also strive to possess: a. Independence b. Competence c. Objectivity d. All of the above

Last Answer : All of the above

Similar to auditors in the CPA realm, internal auditors also strive to possess: a. Independence b. Competence c. Objectivity d. All of the above

Description : Similar to auditors in the CPA realm, internal auditors also strive to possess: a. Independence b. Competence c. Objectivity d. All of the above

Last Answer : All of the above

In determining whether the work of the internal auditors is likely to be adequate for purposes of the audit, the external auditor shall evaluate the internal auditor's a. Efficiency and experience b. Competence and objectivity c. Independence and review skills d. Training and supervisory skills

Description : In determining whether the work of the internal auditors is likely to be adequate for purposes of the audit, the external auditor shall evaluate the internal auditor's a. Efficiency and experience b. Competence and objectivity c. Independence and review skills d. Training and supervisory skills

Last Answer : Competence and objectivity

No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.

Description : No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.

Last Answer : Maintains his independence

A professional accountant is likened to a prudent father to his son. This relates to what fundamental principle? a. Professional competence and due care b. Confidentiality c. Integrity d. Objectivity

Description : A professional accountant is likened to a prudent father to his son. This relates to what fundamental principle? a. Professional competence and due care b. Confidentiality c. Integrity d. Objectivity

Last Answer : Professional competence and due care

This fundamental ethical principle prohibits association of professional accountants with reports, returns, communications and other information that contains materially false or misleading information or statements. a. Integrity b. Objectivity c. Professional competence and due care d. Professional behavior

Description : This fundamental ethical principle prohibits association of professional accountants with reports, returns, communications and other information that contains materially false or misleading information or statements ... b. Objectivity c. Professional competence and due care d. Professional behavior

Last Answer : Integrity

The firm is to be staffed by personnel who have attained and maintained the technical standards and professional competence required to enable them to fulfill their responsibilities with due care is the objective of what quality control policy? a. Ethical requirements b. Leadership responsibilities c. Assignment d. Monitoring

Description : The firm is to be staffed by personnel who have attained and maintained the technical standards and professional competence required to enable them to fulfill their responsibilities with due care ... control policy? a. Ethical requirements b. Leadership responsibilities c. Assignment d. Monitoring

Last Answer : b

The principle of Professional behavior requires a CPA to: a. Perform professional services with due care, competence and diligence. b. Be straightforward and honest in performing professional servicesc. Act in a manner consistent with thegood reputation of the professionand refrain from any conduct whichmight bring discredit to theprofession.d. Be fair and should not allow prejudice orbias, conflict of interest or influence ofothers to override objectivity or affecthis professional or business judgments.

Description : The principle of Professional behavior requires a CPA to: a. Perform professional services with due care, competence and diligence. b. Be straightforward and honest in performing professional ... or influence of others to override objectivity or affect his professional or business judgments.

Last Answer : Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

This fundamental principle requires a CPA not to use or disclose information acquired during the course of performing professional services without proper and specific authority. a. Objectivity. b. Professional Behavior. c. Professional Competence and Due care. d. Confidentiality

Description : This fundamental principle requires a CPA not to use or disclose information acquired during the course of performing professional services without proper and specific authority. a. Objectivity. b. Professional Behavior. c. Professional Competence and Due care. d. Confidentiality

Last Answer : Confidentiality

The principle of professional behavior requires a CPA to a. Be straightforward and honest in performing professional services. b. Perform professional services with due care, competence and diligence.c. Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity. d. Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

Description : The principle of professional behavior requires a CPA to a. Be straightforward and honest in performing professional services. b. Perform professional services with due care, competence and diligence. ... of the profession and refrain from any conduct which might bring discredit to the profession

Last Answer : Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

There are fundamental principles that the professional accountant has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance engagement in ensuring that the conclusion of the professional accountant has value to the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity

Description : There are fundamental principles that the professional accountant has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance ... the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity

Last Answer : Objectivity

Which one of the following is not a part of the attest process? a. Evaluating evidence against objective criteria b. Gathering evidence about assertions c. Proving the accuracy of the books and records d. Communicating the conclusions reached

Description : Which one of the following is not a part of the attest process? a. Evaluating evidence against objective criteria b. Gathering evidence about assertions c. Proving the accuracy of the books and records d. Communicating the conclusions reached

Last Answer : Proving the accuracy of the books and records

Which of the following statements is correct? a. Sufficiency refers to the quality of evidence, while appropriateness refers to the quantity of evidence. b. The reliability of evidence is influenced not by its nature but by its source. c. The performance of consulting services for audit clients does not, in and of itself, impair the auditor’s independence. d. A belief that management and those charged with governance are honest and have integrity relieves the auditor of the need to maintain professional scepticism.

Description : Which of the following statements is correct? a. Sufficiency refers to the quality of evidence, while appropriateness refers to the quantity of evidence. b. The reliability of evidence is ... are honest and have integrity relieves the auditor of the need to maintain professional scepticism.

Last Answer : The performance of consulting services for audit clients does not, in and of itself, impair the auditor’s independence

The generally accepted auditing standards of fieldwork pertain most directly to: a. Improving internal control as a result of the audit. b. Due professional care in the performance of the audit. c. The required training and proficiency of the auditors. d. The planning of the audit

Description : The generally accepted auditing standards of fieldwork pertain most directly to: a. Improving internal control as a result of the audit. b. Due professional care in the performance of the audit. c. The required training and proficiency of the auditors. d. The planning of the audit

Last Answer : The planning of the audit

A CPA is conducting the first audit of a client’s financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. This procedure is a. Acceptable if the CPA refers in the audit report to reliance upon the predecessor auditor's work. b. Required if the CPA is to render an unqualified opinion. c. Unacceptable because the CPA should bring an independent viewpoint to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Description : A CPA is conducting the first audit of a client's financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. ... to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Last Answer : Acceptable if the client and the predecessor auditor agree to it.

The independent auditor lends credibility to client financial statements by a. Stating in the auditor’s management letter that the examination was made in accordance with PSAs b. Attaching an auditor’s opinion to the client’s financial statements. c. Testifying under oath about client financial statements. d. Maintaining clear-cut distinctions between management representations and auditor’s representations.

Description : The independent auditor lends credibility to client financial statements by a. Stating in the auditor's management letter that the examination was made in accordance with PSAs b. ... statements. d. Maintaining clear-cut distinctions between management representations and auditor's representations.

Last Answer : Attaching an auditor’s opinion to the client’s financial statements.

Which of the following statements about independent financial statement audit is correct? a. The audit of financial statements relieves management of its responsibilities for die financial statements. b. An audit is designed to provide limited assurance that the financial statements taken as a whole are free from material misstatement. c. The auditor's opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency withwhich management has conductedthe affairs of the entity.d. The procedures required to conduct anaudit in accordance with PSAs shouldbe determined by the client whoengaged the services of the auditor

Description : Which of the following statements about independent financial statement audit is correct? a. The audit of financial statements relieves management of its responsibilities for die financial statements. b. An ... with PSAs should be determined by the client who engaged the services of the auditor

Last Answer : The auditor's opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency withwhich management has conducted the affairs of the entity.

Which of the following best describes why publicly-traded corporations follow the practice of having the outside auditor appointed by the board of directors or elected by the stockholders? a. To comply with the regulations of the Accounting Standards Council. b. To emphasize auditor independence from the management of the corporation. c. To encourage a policy of rotation of the independent auditors. d. To provide the corporate owners with an opportunity to voice their opinion concerning the quality of the auditing firm selected by the director

Description : Which of the following best describes why publicly-traded corporations follow the practice of having the outside auditor appointed by the board of directors or elected by the stockholders? a. ... opportunity to voice their opinion concerning the quality of the auditing firm selected by the director

Last Answer : To emphasize auditor independence from the management of the corporation

A CPA establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose for establishing such policies and procedures is a. To enable the auditor to attest to the integrity or reliability of a client. b. To comply with the quality control standards established by regulatory bodies. c. To minimize the likelihood of association with clients whosemanagement lacks integrity.d. To lessen the exposure to litigationresulting from failure to detectirregularities in client financialstatements

Description : A CPA establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose ... resulting from failure to detect irregularities in client financial statements association with clients whose

Last Answer : To minimize the likelihood of association with clients whose management lacks integrity

A former officer, director or employee of the assurance client serves as a member of the assurance team. This situation will least likely createa. Self-interest threat.b. Self-review threat.c. Intimidation threat.d. Familiarity threa

Description : A former officer, director or employee of the assurance client serves as a member of the assurance team. This situation will least likely create a. Self-interest threat. b. Self-review threat. c. Intimidation threat. d. Familiarity threa

Last Answer : Intimidation threat

Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of the assurance team becomes too sympathetic to the client's interests. a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threat

Description : Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of the assurance team becomes too sympathetic to the client's interests. a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threat

Last Answer : Familiarity threat

A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Description : A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Last Answer : Advocacy threat

It occurs when a firm or a member of the assurance team could benefit from a financial interest in, or other self-interest conflict with, an assurance client. a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Description : It occurs when a firm or a member of the assurance team could benefit from a financial interest in, or other self-interest conflict with, an assurance client. a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Last Answer : Self-interest threat

The provision of services by a firm or network firm to an audit client that involve the design and implementation of financial information technology systems that are used to generate information forming part of a client's financial statements may most likely create a. Self-interest threat. b. Self-review threat. c. Intimidation threat. d. Familiarity threat

Description : The provision of services by a firm or network firm to an audit client that involve the design and implementation of financial information technology systems that are used to generate information forming ... Self-interest threat. b. Self-review threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Self-review threat

A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Advocacy threat b. Familiarity threac. Self-interest threat d. Self-review threatt

Description : A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Advocacy threat b. Familiarity threat c. Self-interest threat d. Self-review threat

Last Answer : Advocacy threa

A former officer, director or employee of the assurance client serves as a member of the assurance team. This situation will least likely create a. Self-interest threat. b. Self-review threat. c. Familiarity threat. d. Intimidation threat.

Description : A former officer, director or employee of the assurance client serves as a member of the assurance team. This situation will least likely create a. Self-interest threat. b. Self-review threat. c. Familiarity threat. d. Intimidation threat.

Last Answer : Intimidation threat.

A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the assurance team or partner of the firm. This situation least likely create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

Description : A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the ... create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Advocacy threat.

Family and personal relationships between a member of the assurance team and a director, an officer or certain employees, depending on their role, of the assurance client, least likely create a. Self-review threat. b. Self-interest threat. c. Intimidation threat. d. Familiarity threat

Description : Family and personal relationships between a member of the assurance team and a director, an officer or certain employees, depending on their role, of the assurance client, least likely create a. Self-review threat. b. Self-interest threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Self-review threat.

In assessing the technical competence of an internal auditor, an external auditor most likely would obtain information about the a. Organizational level to which the internal auditor reports. b. Quality of working paper documentation, reports, and recommendations. c. Influence of management on the internal auditor's duties. d. Entity's commitment to integrity and ethical values.

Description : In assessing the technical competence of an internal auditor, an external auditor most likely would obtain information about the a. Organizational level to which the internal auditor reports. b. Quality of ... on the internal auditor's duties. d. Entity's commitment to integrity and ethical values.

Last Answer : Quality of working paper documentation, reports, and recommendations

Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid certificate issued by the Board of Accountancy. c. A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client. d. A sole proprietor, or each partner or person occupying a position similar to that of a partner and each staff in a practice providing professional services

Description : Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid ... a position similar to that of a partner and each staff in a practice providing professional services

Last Answer : A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client.

Intimidation threat a. Is not a threat to independence. b. Occurs when a member of the assurance team may be deterred from acting objectively and exercising professional skepticism by threats, actual or perceived, from the directors, officers or employees of an assurance clienc. Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of the assurance team becomes too sympathetic to the client's interests. d. Occurs when a firm, or a member of the assurance team, promotes, or may be perceived to promote, an assurance client's position or opinion to the point that objectivity may, or may be perceived to be, compromised.t

Description : Intimidation threat a. Is not a threat to independence. b. Occurs when a member of the assurance team may be deterred from acting objectively and exercising professional skepticism by threats, actual or ... or opinion to the point that objectivity may, or may be perceived to be, compromised.

Last Answer : Occurs when a member of the assurance team may be deterred from acting objectively and exercising professional skepticism by threats, actual or perceived, from the directors, officers or employees of an assurance client.

Which of the following most completely describes how independence has been defined by the CPA profession? a. Performing an audit from the viewpoint of the public. b. Avoiding the appearance of significant interests in the affairs of an audit client. c. Possessing the ability to act with integrity and objectivity. d. Possessing the ability to act professionally and accordance with a professional code of ethics.

Description : Which of the following most completely describes how independence has been defined by the CPA profession? a. Performing an audit from the viewpoint of the public. b. Avoiding the appearance of ... . d. Possessing the ability to act professionally and accordance with a professional code of ethics.

Last Answer : Possessing the ability to act with integrity and objectivity.

.If a professional accountant is billing an audit client a number of hours greater than those actually worked, which of the following fundamental principles is likely violated? a. Objectivity b. Integrity c. Professional due care d. Confidentiality

Description : If a professional accountant is billing an audit client a number of hours greater than those actually worked, which of the following fundamental principles is likely violated? a. Objectivity b. Integrity c. Professional due care d. Confidentiality

Last Answer : Integrity

In determining independence with respect to any audit engagement, the ultimate decision as to whether or not the auditor is independent must be made by the a. Auditor. b. Client. c. Audit committee. d. Public.

Description : In determining independence with respect to any audit engagement, the ultimate decision as to whether or not the auditor is independent must be made by the a. Auditor. b. Client. c. Audit committee. d. Public.

Last Answer : Auditor

Which of the following best describes the purpose of the engagement letter? a. The engagement letter conveys to management the detailed steps to be applied in the audit process. b. The engagement letter relieves the auditor of some responsibility for the exercise of due care. c. By clearly defining the nature of the engagement, the engagement letter helps avoid and resolve misunderstandings between CPA andclient regarding the precise nature of the work to be performed and the type of report to be issued. d. The engagement letter should be signed by both the client and the CPA and should be used only for independent audits

Description : Which of the following best describes the purpose of the engagement letter? a. The engagement letter conveys to management the detailed steps to be applied in the audit process. b. The engagement letter ... be signed by both the client and the CPA and should be used only for independent audits

Last Answer : By clearly defining the nature of the engagement, the engagement letter helps avoid and resolve misunderstandings between CPA and client regarding the precise nature of the work to be performed and the type of report to be issued

A CPA who has been retained by a client that operates in an industry totally new to him a. May not accept such an engagement. b. May accept the engagement only if the accounting firm specializes in the audit of commercial banks. c. May accept the engagement after attaining a suitable level of understanding of the transactions and accounting practices unique to commercial banking. d. May accept the engagement because training as a CPA transcends unique industry characteristics

Description : A CPA who has been retained by a client that operates in an industry totally new to him a. May not accept such an engagement. b. May accept the engagement only if the ... to commercial banking. d. May accept the engagement because training as a CPA transcends unique industry characteristics

Last Answer : May accept the engagement after attaining a suitable level of understanding of the transactions and accounting practices unique to commercial banking.

Which of the following is incorrect regarding professional competence? a. Professional accountants may portray themselves as having expertise or experience they do not possess. b. Professional competence may be divided into two separate phases. c. The attainment of professional competence requires initially a high standard of general education. d. The maintenance of professional competence requires a continuing awareness of development in the accountancy profession

Description : Which of the following is incorrect regarding professional competence? a. Professional accountants may portray themselves as having expertise or experience they do not possess. b. ... maintenance of professional competence requires a continuing awareness of development in the accountancy profession

Last Answer : Professional accountants may portray themselves as having expertise or experience they do not possess

A time budget is an estimate of the total hours an audit is expected to take. The following are among the factors to be considered in developing this budget, except a. Client's size as indicated by its gross assets, sales, number of employees. b. Location of client facilities. c. The competence and experience of available staff. d. Whether the audit is performed during the interim or at year-end.

Description : A time budget is an estimate of the total hours an audit is expected to take. The following are among the factors to be considered in developing this budget, except a. Client's size as indicated ... experience of available staff. d. Whether the audit is performed during the interim or at year-end.

Last Answer : Whether the audit is performed during the interim or at year-end.

Which of the following statements concerning consulting services is incorrect? a. The performance of consulting services for audit clients does not, in and of itself, impair the auditor's independence. b. Consulting services differ fundamentally from the CPA's function of attesting to the assertions of other parties. c. Consulting services ordinarily involve external reporting. d. Most CPAs, including those who provide audit and tax services, also provide consulting services to their clients

Description : Which of the following statements concerning consulting services is incorrect? a. The performance of consulting services for audit clients does not, in and of itself, impair the auditor's ... including those who provide audit and tax services, also provide consulting services to their clients

Last Answer : Consulting services ordinarily involve external reporting

When an auditor believes that an understanding with the client has not been established, he or she should ordinarily a. Perform the audit with increased professional skepticism. b. Decline to accept or perform the audit. c. Review the client’s financial reports. d. Obtain information about the client’s business and the industry where it operates

Description : When an auditor believes that an understanding with the client has not been established, he or she should ordinarily a. Perform the audit with increased professional skepticism. b. Decline to accept ... reports. d. Obtain information about the client's business and the industry where it operates

Last Answer : Decline to accept or perform the audit.

In all cases, audit reports must a. Communicate the auditor’s finding to the general public. b. Be signed by the individual who performed the audit procedures. c. Certify the accuracy of the quantitative information which was audited. d. Inform readers of the degree of correspondence between the quantifiable information and the established criteria

Description : In all cases, audit reports must a. Communicate the auditor's finding to the general public. b. Be signed by the individual who performed the audit procedures. c. Certify the ... . Inform readers of the degree of correspondence between the quantifiable information and the established criteria

Last Answer : Inform readers of the degree of correspondence between the quantifiable information and the established criteria

Which of the following is prohibited by the Code of Professional Ethics for CPAs? a. Use of a firm name which includes the name of a retired partner. b. Accepting an engagement or employment which one cannot reasonably expect to complete or discharge with professional competence. c. Announcement in a newspaper of the opening of a public accounting office. d. Engaging in civic activities during business hours

Description : Which of the following is prohibited by the Code of Professional Ethics for CPAs? a. Use of a firm name which includes the name of a retired partner. b. Accepting an engagement or ... newspaper of the opening of a public accounting office. d. Engaging in civic activities during business hours

Last Answer : Accepting an engagement or employment which one cannot reasonably expect to complete or discharge with professional competence

The following methods are most likely to develop capabilities and competence, except: a. Professional education. b. Continuing professional development, including training. c. Work experience and coaching by less experienced staff d. Self-study modules on professional accounting and auditing literature

Description : The following methods are most likely to develop capabilities and competence, except: a. Professional education. b. Continuing professional development, including training. c. Work experience and ... by less experienced staff d. Self-study modules on professional accounting and auditing literature

Last Answer : Work experience and coaching by less experienced staf