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    Strayer ACC403 week 2 quiz 1 Strayer ACC403 week 2 quiz 1 Question 1 In “auditing” financial accounting data, the primary concern is with: Answer determining whether recorded information properly reflects the economic events that occurred during the accounting period determining if fraud has occurred.. determining if taxable income has been calculated correctly. analyzing the financial information to be sure that it complies with government requirements. Question 2 The Sarbanes-Oxley Act applies to which of the following companies? Answer All companies Privately held companies Public companies All public companies and privately held companies with assets greater than $500 million Question 3 Which of the following isnotaSysTrustServices principle as defined by the AICPA? Answer Online privacy Availability Processing integrity Operational integrity Question 4 Which of the following services provides the lowest level of assurance on a financial statement? Answer A review An audit Neither service provides assurance on financial statements. Each service provides the same level of assurance on financial statements. Question 5 An accountant: Answer must possess expertise in the accumulation of audit evidence. must decide the number and types of items to test. must have an understanding of the principles and rules that provide the basis for preparing the accounting information. must be a CPA. Question 6 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: Answer finance. auditing. accounting. economics. Question 7 Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n): Answer accounting and bookkeeping service. attestation service. assurance service. tax service. Question 8 The use of the Certified Public Accountant title is regulated by: Answer the federal government. state law through a licensing department or agency of each state. the American Institute of Certified Public Accountants through the licensing departments of the tax and auditing committees. the Securities and Exchange Commission. Question 9 The most common way for users to obtain reliable information is to: Answer have an internal audit. have an independent audit. verify all information individually. verify the information with management. Question 10 An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit? Answer Operational audit Compliance audit Financial statement audit Production audit Question 11 One objective of an operational audit is to: Answer determine whether the financial statements fairly present the entity’s operations. determine if the auditee is in compliance with GAAP. make recommendations for improving performance. report on the entity’s relative success in attaining profit maximization. Question 12 Which of the following is considered audit evidence? Answer Oral statements made by management Written Communications Auditor Observation Y N N Oral statements made by management Written Communications Auditor Observation N Y Y Oral statements made by management Written Communications Auditor Observation Y Y Y Oral statements made by management Written Communications Auditor Observation N N Y Question 13 An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n): Answer audit of financial statements. compliance audit. operational audit. production audit. Question 14 A correct relationship among the auditor, the client, and the external users is: Answer management of a public company hires the independent auditor. the audit committee of a private company h

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    Strayer ACC403 week 2 quiz 1 Strayer ACC403 week 2 quiz 1 Question 1 In “auditing” financial accounting data, the primary concern is with: Answer determining whether recorded information properly reflects the economic events that occurred during the accounting period determining if fraud has occurred.. determining if taxable income has been calculated correctly. analyzing the financial information to be sure that it complies with government requirements. Question 2 The Sarbanes-Oxley Act applies to which of the following companies? Answer All companies Privately held companies Public companies All public companies and privately held companies with assets greater than $500 million Question 3 Which of the following isnotaSysTrustServices principle as defined by the AICPA? Answer Online privacy Availability Processing integrity Operational integrity Question 4 Which of the following services provides the lowest level of assurance on a financial statement? Answer A review An audit Neither service provides assurance on financial statements. Each service provides the same level of assurance on financial statements. Question 5 An accountant: Answer must possess expertise in the accumulation of audit evidence. must decide the number and types of items to test. must have an understanding of the principles and rules that provide the basis for preparing the accounting information. must be a CPA. Question 6 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: Answer finance. auditing. accounting. economics. Question 7 Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n): Answer accounting and bookkeeping service. attestation service. assurance service. tax service. Question 8 The use of the Certified Public Accountant title is regulated by: Answer the federal government. state law through a licensing department or agency of each state. the American Institute of Certified Public Accountants through the licensing departments of the tax and auditing committees. the Securities and Exchange Commission. Question 9 The most common way for users to obtain reliable information is to: Answer have an internal audit. have an independent audit. verify all information individually. verify the information with management. Question 10 An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit? Answer Operational audit Compliance audit Financial statement audit Production audit Question 11 One objective of an operational audit is to: Answer determine whether the financial statements fairly present the entity’s operations. determine if the auditee is in compliance with GAAP. make recommendations for improving performance. report on the entity’s relative success in attaining profit maximization. Question 12 Which of the following is considered audit evidence? Answer Oral statements made by management Written Communications Auditor Observation Y N N Oral statements made by management Written Communications Auditor Observation N Y Y Oral statements made by management Written Communications Auditor Observation Y Y Y Oral statements made by management Written Communications Auditor Observation N N Y Question 13 An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n): Answer audit of financial statements. compliance audit. operational audit. production audit. Question 14 A correct relationship among the auditor, the client, and the external users is: Answer management of a public company hires the independent auditor. the audit committee of a private company h

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    37 views5 pages

    Strayer ACC403 Week 2 Quiz 1

    Uploaded by

    teacher.theacestud
    Strayer ACC403 week 2 quiz 1 Strayer ACC403 week 2 quiz 1 Question 1 In “auditing” financial accounting data, the primary concern is with: Answer determining whether recorded information properly reflects the economic events that occurred during the accounting period determining if fraud has occurred.. determining if taxable income has been calculated correctly. analyzing the financial information to be sure that it complies with government requirements. Question 2 The Sarbanes-Oxley Act applies to which of the following companies? Answer All companies Privately held companies Public companies All public companies and privately held companies with assets greater than $500 million Question 3 Which of the following isnotaSysTrustServices principle as defined by the AICPA? Answer Online privacy Availability Processing integrity Operational integrity Question 4 Which of the following services provides the lowest level of assurance on a financial statement? Answer A review An audit Neither service provides assurance on financial statements. Each service provides the same level of assurance on financial statements. Question 5 An accountant: Answer must possess expertise in the accumulation of audit evidence. must decide the number and types of items to test. must have an understanding of the principles and rules that provide the basis for preparing the accounting information. must be a CPA. Question 6 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: Answer finance. auditing. accounting. economics. Question 7 Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n): Answer accounting and bookkeeping service. attestation service. assurance service. tax service. Question 8 The use of the Certified Public Accountant title is regulated by: Answer the federal government. state law through a licensing department or agency of each state. the American Institute of Certified Public Accountants through the licensing departments of the tax and auditing committees. the Securities and Exchange Commission. Question 9 The most common way for users to obtain reliable information is to: Answer have an internal audit. have an independent audit. verify all information individually. verify the information with management. Question 10 An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit? Answer Operational audit Compliance audit Financial statement audit Production audit Question 11 One objective of an operational audit is to: Answer determine whether the financial statements fairly present the entity’s operations. determine if the auditee is in compliance with GAAP. make recommendations for improving performance. report on the entity’s relative success in attaining profit maximization. Question 12 Which of the following is considered audit evidence? Answer Oral statements made by management Written Communications Auditor Observation Y N N Oral statements made by management Written Communications Auditor Observation N Y Y Oral statements made by management Written Communications Auditor Observation Y Y Y Oral statements made by management Written Communications Auditor Observation N N Y Question 13 An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n): Answer audit of financial statements. compliance audit. operational audit. production audit. Question 14 A correct relationship among the auditor, the client, and the external users is: Answer management of a public company hires the independent auditor. the audit committee of a private company h

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