Auditing Chapter 2 and 3
Auditing Chapter 2 and 3
Chapter MC 2 2.26 - 2.29 Q 65, 70(I)
2.26) Which of the following categories of principles is most closely related to gathering audit evidence? A. Performance
2.27) Which of the following is not related to ethical requirements of auditors? D. professional judgment
2.28) One of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of the achieving this objective can be obtained by the following B. Standards within a system of quality control
2.29) Which of the following best demonstrates the concepts of professional skepticism? C. Critically assessing verbal evidence received from the entity's management.
2.30) The primary purpose for obtaining an understanding of the entry’s environment (including its internal control) in a financial statement audit is A. To determine the nature, timing, and extent of substantive procedures to be performed
2.65) A. An entity has contacted you about performing their audit engagement. You have not previously served a client in the entity's industry, which has many industry-specific accounting issues that are both technical and complex. Competence and Capabilities element responsibilities principle B. An entity has entered into a number of lease agreements. Based on the requirements of GAAP, you believe that these obligations meet the criteria for being classified as capital leases; however, the entity has elected to treat these leases as operating leases, providing full and complete disclosure of this treatment in the footnotes to the financial statements Reporting
C. Because of a disagreement with its current auditors, an entity has contacted you about conducting its current-year audit. However, because the previous auditors have just recently resigned the engagement, you have some questions as to whether an audit can be completed in time to meet the entity's deadlines for providing audited financial
Chapter MC 2 2.26 - 2.29 Q 65, 70(I)
2.26) Which of the following categories of principles is most closely related to gathering audit evidence? A. Performance
2.27) Which of the following is not related to ethical requirements of auditors? D. professional judgment
2.28) One of an accounting firm’s basic objectives is to provide professional services that conform to professional standards. Reasonable assurance of the achieving this objective can be obtained by the following B. Standards within a system of quality control
2.29) Which of the following best demonstrates the concepts of professional skepticism? C. Critically assessing verbal evidence received from the entity's management.
2.30) The primary purpose for obtaining an understanding of the entry’s environment (including its internal control) in a financial statement audit is A. To determine the nature, timing, and extent of substantive procedures to be performed
2.65) A. An entity has contacted you about performing their audit engagement. You have not previously served a client in the entity's industry, which has many industry-specific accounting issues that are both technical and complex. Competence and Capabilities element responsibilities principle B. An entity has entered into a number of lease agreements. Based on the requirements of GAAP, you believe that these obligations meet the criteria for being classified as capital leases; however, the entity has elected to treat these leases as operating leases, providing full and complete disclosure of this treatment in the footnotes to the financial statements Reporting
C. Because of a disagreement with its current auditors, an entity has contacted you about conducting its current-year audit. However, because the previous auditors have just recently resigned the engagement, you have some questions as to whether an audit can be completed in time to meet the entity's deadlines for providing audited financial