Which of the following is NOT associated with increased security from using a VPN?

Which of the following is NOT associated with increased security from using a VPN? a. The tunneling protocol b. Remote access c. Required username...

Which of the following is NOT a benefit of using a VPN?

Which of the following is NOT a benefit of using a VPN? a. Security b. Vulnerable to hacking c. Mobile d. Scalable Answer: b. Vulnerable to...

What does VPN stand for?

What does VPN stand for? a. Virtual Proxy Network b. Virtual Private Network c. Virtual Public Network d. Verified Private Network Answer: b....

What is the Internet of Things?

What is the Internet of Things? A. It is in accounting firms. B. It is in factories. C. Most people have it in their homes. D. All of the above. E....

How can the internet of things help the accounting profession?

How can the internet of things help the accounting profession? A. It can provide an increase in efficiency via automation. B. It can increase awareness...

What is the internet of things?

What is the internet of things? A. A networks sales system like ebay or amazon. B. A from of networked communication to build communities like facebook...

What ways do Governments plan to replace lost tax revenue?

What ways do Governments plan to replace lost tax revenue?  a.Taxing digital blueprints? b.Taxing intellectual property? c.Niether A or B d.Both...

What aspect of 3D printing are governments most concerned with?

What aspect of 3D printing are governments most concerned with?  a. Taxation b. Flattening of Supply Chains c. Production of Counterfeits d....

What can you print?

What can you print?  a. Cars b. Food c. Organs d. All of the Above Answer: d. All of the Abo...

What best describes a Software-Defined Infrastructure?

What best describes a Software-Defined Infrastructure? a. Computing infrastructure entirely under the control of software with no operator or human...

What is the main function of a Software-Defined Infrastructure?

What is the main function of a Software-Defined Infrastructure? a. Cost effectiveness b. Efficiency c. Transparency d. Human Control Answer: b....

What are 3 benefits to a Software-Defined Infrastructure?

What are 3 benefits to a Software-Defined Infrastructure? a. Performs multiple, difficult tasks at once b. Saves time and effort c. Lower cost of...

What is described as the most crucial phase of the Project Management Process?

What is described as the most crucial phase of the Project Management Process?  A: Planning B: Controlling C: Executing D: Initiation Answer: D:...

What is the most common, effective scheduling resource?

What is the most common, effective scheduling resource?  A: Time Cards B: G-Mail Calendar C: Gantt Chart D: Memorization Answer: C: Gantt...

What are the five steps of project management?

What are the five steps of project management? A: Initiation, Review, Acquire Supplies, Execute, Done B: Initiation, Planning, Execution, Monitor...

The October 1, 2015, EMV Fraud Liability Shift:

The October 1, 2015, EMV Fraud Liability Shift: a. Forced the adoption of e-Wallet technology by merchants b. Increased the level of credit card fraud...

What is the difference between mobile banking and e-Wallets?

What is the difference between mobile banking and e-Wallets? a. Mobile banking is more widely accepted at merchant locations b. Mobile banking allows...

Mobile wallets can store which of the following:

Mobile wallets can store which of the following: a. Loyalty cards b. Gift cards c. Credit Cards d. Debit Cards e. All of the above Answer: e....

What is the impact of Bitcoin on accounting?

What is the impact of Bitcoin on accounting? A. The IRS ruled Bitcoin should be treated like property and the profit should be recognized as a capital...

Which of the following about Blockchain is false?

Which of the following about Blockchain is false? A. Blockchain is created through several computers on a peer to peer network B. Members of the...

Which of the following about Bitcoin is false?

Which of the following about Bitcoin is false? A. Bitcoin is a digital currency and a digital wallet stores the Bitcoin you own B. Open sourced software...

What is Project Loon?

What is Project Loon? a. A network of balloons designed to bring Internet to remote areas b. A way for Google to open up Internet markets to reach...

What is one advantage this project gives to Google?

What is one advantage this project gives to Google? Answer: New users and ability to use this data for advertisi...

Where are the balloons positioned in the atmosphere?

Where are the balloons positioned in the atmosphere? Answer: stratosphe...

What type of radio band does Project Loon use to connect?

What type of radio band does Project Loon use to connect? Answer: ISM ban...

Which of the following is not an advantage of drones mentioned in class?

Which of the following is not an advantage of drones mentioned in class? a. They can help with inventory management b. They can film unethical decisions...

Which of the following is not a restriction of drones mentioned in class?

Which of the following is not a restriction of drones mentioned in class? a. Can't exceed 100 mph b. Can't be flown over people c. Have to be within...

What is a drone?

What is a drone? a. A database integrated by corporations b. An unmanned aircraft c. A wearable technology d. Cloud security device Answer: b....

What is one reason hashing algorithms are helpful in encryption?

What is one reason hashing algorithms are helpful in encryption? a. They allow the key to be longer so there are more possibilities for the key b....

Why do some companies, such as Google, choose not to encrypt their data?

Why do some companies, such as Google, choose not to encrypt their data? a. It is too time consuming b. Government compliance reasons c. It is too...

What are the two types of encryption?

What are the two types of encryption? a. Private and public b. Government and commercial c. Symmetric and public-key d. Symmetric and freeform Answer: c....

In an engagement to express an opinion on one or more specified elements, accounts, or items of a financial statement, the auditor can generally audit only those specified elements and not the entire set of financial statements. However, the auditor is required to audit the entire set of financial statements if the elements specified include

In an engagement to express an opinion on one or more specified elements, accounts, or items of a financial statement, the auditor can generally audit...

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse...

A scope limitation sufficient to preclude an unqualified opinion always will result when management

A scope limitation sufficient to preclude an unqualified opinion always will result when management  A. Prevents the auditor from reviewing the...

In the first audit of an entity, because of the entity's record retention policies, an auditor was not able to gather sufficient evidence about the consistent application of accounting principles between the current and the prior year, as well as the amounts of assets or liabilities at the beginning of the current year. If the amounts in question could materially affect current operating results, the auditor would

In the first audit of an entity, because of the entity's record retention policies, an auditor was not able to gather sufficient evidence about the...

When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change, the auditor should

When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for...

Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current inventory but has not observed the physical inventory at the previous year-end date and concludes that the opening inventory balance, which is not auditable, is a material factor in the determination of cost of goods sold for the current year. Cravens will probably

Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current...

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision, but the entity refuses to revise or eliminate the material inconsistency, the auditor may

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial...

A special report related to compliance with contractual provisions provides

A special report related to compliance with contractual provisions provides  A. Positive assurance. B. Negative assurance. C. No assurance. D....

When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item. However, the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's

When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item. However,...

An engagement to express an opinion on a system of internal control will generally

An engagement to express an opinion on a system of internal control will generally  A. Only require those procedures already applied in assessing...

Which of the generally accepted auditing standards of reporting would not normally apply to special reports such as cash basis statements?

Which of the generally accepted auditing standards of reporting would not normally apply to special reports such as cash basis statements?  A....

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include all of the following except:

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should...

When an auditor reports on financial statements prepared on an entity's income tax basis, the auditor's report should

When an auditor reports on financial statements prepared on an entity's income tax basis, the auditor's report should  A. Be titled so that the...

All of the following are true with respect to the auditor's consideration of information other than the audited financial statements that are included in an entity's annual report except:

All of the following are true with respect to the auditor's consideration of information other than the audited financial statements that are included...

What is an auditor's responsibility for supplementary information, such as segment information, that is outside the basic financial statements, but required by the FASB?

What is an auditor's responsibility for supplementary information, such as segment information, that is outside the basic financial statements, but...

When audited financial statements are presented in an entity's document containing other information, the auditor should

When audited financial statements are presented in an entity's document containing other information, the auditor should  A. Perform inquiry...

When audited financial statements are presented in a document containing other information, the auditor

When audited financial statements are presented in a document containing other information, the auditor  A. Has an obligation to perform auditing...

The auditor's best course of action with respect to "other financial information" included in an annual report containing the auditor's report is to

The auditor's best course of action with respect to "other financial information" included in an annual report containing the auditor's report is to  A....

An auditor may reasonably issue an "except for" qualified opinion for

An auditor may reasonably issue an "except for" qualified opinion for  A. A scope limitation or an unjustified accounting change. B. A scope...

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements. The disclaimer should

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements. The...

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the entity's financial statement?

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the entity's...

Which of the following would not require an explanatory/emphasis-of-matter paragraph in the auditor's report?

Which of the following would not require an explanatory/emphasis-of-matter paragraph in the auditor's report?  A. Additional emphasis. B. Lack...

When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose report is not presented, the successor auditor should make

When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose...

Auditing standards define special purpose financial statements as including those prepared under the following base(s)

Auditing standards define special purpose financial statements as including those prepared under the following base(s)  A. Regulatory basis. B....

If a public company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows, the auditor ordinarily will express a(an)

If a public company issues financial statements that purport to present its financial position and results of operations but omits the statement of...

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, the auditor's...

Comparative financial statements include the financial statements of a prior period that were examined by a predecessor auditor whose report is not presented. If the predecessor auditor's report was qualified, the successor auditor must

Comparative financial statements include the financial statements of a prior period that were examined by a predecessor auditor whose report is not...

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's financial statements adequately disclose its financial difficulties, the auditor's report is required to include an explanatory/emphasis-of-matter paragraph that specifically uses the phrase(s)

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the...

In the auditor's report, the principal auditor decides not to make reference to another CPA who audited an entity's subsidiary. The principal auditor could justify this decision if, among other requirements, the principal auditor

In the auditor's report, the principal auditor decides not to make reference to another CPA who audited an entity's subsidiary. The principal auditor...

The predecessor auditor, after properly communicating with the successor auditor, has reissued a report because the entity desires comparative financial statements. The predecessor auditor's report should make

The predecessor auditor, after properly communicating with the successor auditor, has reissued a report because the entity desires comparative financial...

Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidated financial statements and Abbot is willing to accept responsibility for the work of the other auditor. What recognition, if any, must Abbot make in his report to the report of the other audit?

Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the...

Which of the following would be considered a change that does not affect consistency?

Which of the following would be considered a change that does not affect consistency?  A. Change expected to have a material future effect. B....

An auditor is reporting on cash basis financial statements. These statements are best referred to in his or her report by which one of the following descriptions?

An auditor is reporting on cash basis financial statements. These statements are best referred to in his or her report by which one of the following...

Other bases of accounting (special purpose frameworks) include all of the following except:

Other bases of accounting (special purpose frameworks) include all of the following except:  A. Tax basis. B. Non-GAAP methods used for internal...

An auditor would issue an adverse opinion if

An auditor would issue an adverse opinion if  A. The audit was begun by other independent auditors who withdrew from the engagement. B. A qualified...

When an auditor expresses an adverse opinion, the opinion paragraph should include

When an auditor expresses an adverse opinion, the opinion paragraph should include  A. The principal effects of the departure from generally...

When the entity fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the related footnotes, it is the responsibility of the auditor to present the information, if practicable, in the auditor's report and express a(n)

When the entity fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in...

Which of the following circumstances should be recognized as a consistency modification in the auditor's report, whether or not the item is fully disclosed in the financial statements?

Which of the following circumstances should be recognized as a consistency modification in the auditor's report, whether or not the item is fully disclosed...

Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report?

Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report?  A. A change in accounting...

When the auditor is unable to determine the amounts associated with the illegal acts of entity personnel because of an inability to obtain adequate evidence, the auditor should issue a(n)

When the auditor is unable to determine the amounts associated with the illegal acts of entity personnel because of an inability to obtain adequate...

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties. The inclusion of this separate paragraph

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions...

An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a large foreign subsidiary. Between which of the following reports should the auditor choose?

An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a large foreign subsidiary. Between...

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a...

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a...

Which of the following would be considered a change that affects consistency?

Which of the following would be considered a change that affects consistency?  A. Change in accounting estimate. B. Change in accounting principle. C....

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt...

The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the

The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would...

When a question arises about an entity's continued existence, the auditor should consider factors tending to mitigate the significance of negative information concerning the entity's means for maintaining adequate cash flow. An example of such a factor is the

When a question arises about an entity's continued existence, the auditor should consider factors tending to mitigate the significance of negative information...

If the principal auditor decides to make reference to the other auditor's examination, the introductory paragraph must specifically indicate the

If the principal auditor decides to make reference to the other auditor's examination, the introductory paragraph must specifically indicate the  A....

In connection with the examination of the consolidated financial statements of Mott Industries, Frazier, CPA, plans to refer to another CPA's examination of the financial statements of a subsidiary company. Under these circumstances, Frazier's report must disclose

In connection with the examination of the consolidated financial statements of Mott Industries, Frazier, CPA, plans to refer to another CPA's examination...

A predecessor auditor should complete the following before reissuing a report on statements presented on a comparative basis:

A predecessor auditor should complete the following before reissuing a report on statements presented on a comparative basis:  A. Read the financial...

When comparative financial statements are presented, the fourth standard of reporting, which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the

When comparative financial statements are presented, the fourth standard of reporting, which refers to financial statements "taken as a whole," should...

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial statements, the auditor would issue a(n)

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial statements,...

For which of the following events would an auditor issue a report that does not include any reference to consistency?

For which of the following events would an auditor issue a report that does not include any reference to consistency?  A. A change in the method...

Management believes and the auditor is satisfied, that a material loss probably will occur when pending litigation is resolved. Management is unable to make a reasonable estimate of the amount or range of the potential loss, but fully discloses the situation in the notes to the financial statements. If the auditor wishes to call attention to the matter and management does not make an accrual in the financial statements, the auditor should issue a(an)

Management believes and the auditor is satisfied, that a material loss probably will occur when pending litigation is resolved. Management is unable...

When the audited financial statements of the prior year are presented together with those of the current year, the continuing auditor's report should cover

When the audited financial statements of the prior year are presented together with those of the current year, the continuing auditor's report should...

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?  A. Restriction imposed...

Which of the following parties is responsible for the fairness of the representations made in financial statements?

Which of the following parties is responsible for the fairness of the representations made in financial statements?  A. Entity's management. B....

Who generally signs the legal letter?

Who generally signs the legal letter?  A. The board of directors. B. The audit partner. C. The CEO of the entity being audited. D. The entity's...

After issuance of the auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by that report unless

After issuance of the auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered...

After an auditor has issued an audit report on a nonpublic entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless

After an auditor has issued an audit report on a nonpublic entity, there is no obligation to make any further audit tests or inquiries with respect...

After issuance of the auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor's report unless

After issuance of the auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered...

Key Co. plans to present comparative financial statements for the years ended December 31, 2012 and 2013, respectively. Smith, CPA, audited Key's financial statements for both years and plans to report on the comparative financial statements on May 1, 2014. Key's current management team was not present until January 1, 2013. What period of time should be covered by Key's management representation letter?

Key Co. plans to present comparative financial statements for the years ended December 31, 2012 and 2013, respectively. Smith, CPA, audited Key's financial...

For which of the following matters should an auditor obtain written management representations?

For which of the following matters should an auditor obtain written management representations?  A. Management's cost-benefit justifications...

Which of the following statements is correct concerning an auditor's required communication with those charged with governance?

Which of the following statements is correct concerning an auditor's required communication with those charged with governance?  A. This communication...

Which of the following statements is correct about an auditor's required communication with management and those charged with governance?

Which of the following statements is correct about an auditor's required communication with management and those charged with governance?  A....

Which of the following statements ordinarily is included among the written management representations obtained by the auditor?

Which of the following statements ordinarily is included among the written management representations obtained by the auditor?  A. Compensating...

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when  A. The outcome of...

A Type I subsequent event usually requires

A Type I subsequent event usually requires  A. An adjustment to the financial statements. B. No adjustment to the financial statements. C. Withdrawal...

An auditor's decision concerning whether or not to "dual date" the audit report is based upon the auditor's willingness to

An auditor's decision concerning whether or not to "dual date" the audit report is based upon the auditor's willingness to  A. Extend auditing...

Which of the following statements extracted from an entity's lawyer's letter concerning litigation, claims, and assessments most likely would cause the auditor to request clarification?

Which of the following statements extracted from an entity's lawyer's letter concerning litigation, claims, and assessments most likely would cause...

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with  A. A description and...

Auditors often request that the entity send a letter of inquiry to those attorneys who have been consulted with respect to litigation, claims, and/or assessments. The primary reason for this request is to provide the auditor with

Auditors often request that the entity send a letter of inquiry to those attorneys who have been consulted with respect to litigation, claims, and/or...

An entity has violated a minor requirement of its bond indenture that could result in the trustee requiring immediate payment of the principal amount due. The entity refuses to seek a waiver from the bond trustee. Request for immediate payment is not considered likely. Under these circumstances, the auditor must

An entity has violated a minor requirement of its bond indenture that could result in the trustee requiring immediate payment of the principal amount...

After an audit report containing an unqualified opinion on a nonpublic entity's financial statements is issued, the auditor learns that the entity has decided to sell the shares of a subsidiary that accounts for 30 percent of its revenue and 25 percent of its net income. The auditor should

After an audit report containing an unqualified opinion on a nonpublic entity's financial statements is issued, the auditor learns that the entity has...

On February 25, a CPA issued an auditor's report expressing an unqualified opinion on financial statements for the year ended January 31. On March 2, the CPA learned that, on February 11, the entity incurred a material loss on an uncollectible trade receivable as a result of the ongoing deterioration of the financial condition of the entity's principal customer, which finally led to the customer's bankruptcy. Management then refused to adjust the financial statements for this subsequent event. The CPA determined that the information is reliable and that there are creditors currently relying on the financial statements. The CPA's next course of action most likely would be to

On February 25, a CPA issued an auditor's report expressing an unqualified opinion on financial statements for the year ended January 31. On March 2,...

Which of the following events occurring after the issuance of an entity's financial statements and the auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?

Which of the following events occurring after the issuance of an entity's financial statements and the auditor's report most likely would cause the...

Communications between the auditor and those charged with governance should include all of the following except:

Communications between the auditor and those charged with governance should include all of the following except:  A. A summary of specific audit...

A written representation from an entity's management that, among other matters, acknowledges responsibility for the fair presentation of financial statements should normally be signed by the

A written representation from an entity's management that, among other matters, acknowledges responsibility for the fair presentation of financial statements...

When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representations

When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that...

"There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in, financial reporting practices that could have a material effect on the financial statements." The foregoing passage is most likely from a

"There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in, financial reporting practices that could...

Which of the following matters is an auditor required to communicate to those charged with governance?

Which of the following matters is an auditor required to communicate to those charged with governance?  A. The basis for assessing control risk...

There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an)

There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements...

Which of the following expressions is least likely to be included in a management representation letter?

Which of the following expressions is least likely to be included in a management representation letter?  A. No events have occurred subsequent...

As part of an audit, a CPA often requests a representation letter from the entity. Which one of the following is not a valid purpose of such a letter?

As part of an audit, a CPA often requests a representation letter from the entity. Which one of the following is not a valid purpose of such a letter?  A....

Which of the following ratios is least likely to assist the auditor in determining whether the entity is experiencing financial difficulties?

Which of the following ratios is least likely to assist the auditor in determining whether the entity is experiencing financial difficulties?  A....

In the course of the examination of financial statements for the purpose of expressing an opinion, the auditor normally prepares a schedule of unadjusted differences for which the auditor did not propose adjustments when they were discovered. What is the primary purpose of this schedule?

In the course of the examination of financial statements for the purpose of expressing an opinion, the auditor normally prepares a schedule of unadjusted...

After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review of the working papers. This second review usually focuses on

After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review...

A Type II subsequent event usually requires

A Type II subsequent event usually requires  A. An adjustment to the financial statements and the footnotes. B. An adjustment to the financial...

Harvey, CPA is preparing an audit program for the purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure essential to a fair presentation of the financial statements in conformity with generally accepted accounting principles. Which one of the following procedures would be least appropriate for this purpose?

Harvey, CPA is preparing an audit program for the purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure...

If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as to which the date is March 3, 2014, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of

If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as...

A major customer of an entity suffers a fire after year-end, but just prior to completion of audit fieldwork. The entity believes that this event could have a significant direct effect on the financial statements. The auditor should

A major customer of an entity suffers a fire after year-end, but just prior to completion of audit fieldwork. The entity believes that this event could...

An auditor is concerned with completing various phases of the examination after the balance sheet date. This "subsequent period" involving formal audit procedures extends to the date of the

An auditor is concerned with completing various phases of the examination after the balance sheet date. This "subsequent period" involving formal audit...

Subsequent events for which the auditor has a responsibility to actively search are defined as events that occur subsequent to the

Subsequent events for which the auditor has a responsibility to actively search are defined as events that occur subsequent to the  A. Balance...

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?  A. Culmination of events...

Which of the following is generally requested in a legal letter?

Which of the following is generally requested in a legal letter?  A. A request that the attorney comment on unasserted claims where his or her...

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response to

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response...

Which of the following is not an audit procedure that the independent auditor would perform with respect to litigation, claims, and assessments?

Which of the following is not an audit procedure that the independent auditor would perform with respect to litigation, claims, and assessments?  A....

Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?

Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?  A. An analysis of related party...

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?  A. Reconcile...

Generally, loss contingencies that are judged to be remote

Generally, loss contingencies that are judged to be remote  A. Should be disclosed in the footnotes. B. Should be recorded in the financial statements. C....

Ajax, Inc., is an affiliate of Borax, Inc. and is audited by another audit firm. Which of the following is most likely to be used by the auditor of Borax to obtain assurance that all guarantees by Borax of Ajax's indebtedness have been detected?

Ajax, Inc., is an affiliate of Borax, Inc. and is audited by another audit firm. Which of the following is most likely to be used by the auditor of...

The management letter is used

The management letter is used  A. To allow management to corroborate oral representations to the auditor. B. To confirm the terms of the audit...

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?  A. Significant audit...

The date of the management representation letter should coincide with the

The date of the management representation letter should coincide with the  A. Date of the latest subsequent event referred to in the notes to...

Which of the following auditing procedures is ordinarily performed last?

Which of the following auditing procedures is ordinarily performed last?  A. Confirming accounts payable. B. Testing the purchasing function. C....

The purpose of analytical procedures at the completion of the audit includes all of the following except:

The purpose of analytical procedures at the completion of the audit includes all of the following except:  A. Revising the audit plan. B. Considering...

Which of the following procedures should an auditor generally perform regarding subsequent events?

Which of the following procedures should an auditor generally perform regarding subsequent events?  A. Compare the latest available interim financial...

An auditor issued an audit report that was dual dated for a subsequent event that occurred after the completion of fieldwork but before issuance of the auditor's report. The auditor's responsibility for events occurring subsequent to the completion of fieldwork was

An auditor issued an audit report that was dual dated for a subsequent event that occurred after the completion of fieldwork but before issuance of...

An example of a Type I subsequent event is

An example of a Type I subsequent event is  A. A tornado that destroys an entity's factory after the balance sheet date. B. An event after the...

Which of the following situations would require adjustment to or disclosure in the financial statements?

Which of the following situations would require adjustment to or disclosure in the financial statements?  A. A merger discussion. B. The application...

Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?

Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before...

The refusal of an entity's attorney to provide a representation on the legality of a particular act committed by the entity is generally

The refusal of an entity's attorney to provide a representation on the legality of a particular act committed by the entity is generally  A....

If a lawyer refuses to furnish corroborating information regarding litigation, claims, and assessments, the auditor should

If a lawyer refuses to furnish corroborating information regarding litigation, claims, and assessments, the auditor should  A. Honor the confidentiality...

An auditor will ordinarily examine invoices from lawyers primarily in order to

An auditor will ordinarily examine invoices from lawyers primarily in order to  A. Substantiate accruals. B. Assess the legal ramifications of...

An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against an entity except the:

An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against an entity except the:  A....

The auditor's primary means of obtaining corroboration of management's information concerning litigation is a

The auditor's primary means of obtaining corroboration of management's information concerning litigation is a  A. Letter of audit inquiry to...

When obtaining evidence regarding litigation against an entity, the CPA would be least interested in determining

When obtaining evidence regarding litigation against an entity, the CPA would be least interested in determining  A. An estimate of when the...

When auditing contingent liabilities, which of the following procedures would be least effective?

When auditing contingent liabilities, which of the following procedures would be least effective?  A. Reading the minutes of the board of directors. B....