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Audit Final Exam Review Questions with 100% Correct Answers 2022/2023

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Audit Final Exam Review Questions with 100% Correct Answers 2022/2023 An unqualified (unmodified) audit opinion is a negative opinion regarding the financial statements indicating that the financia... l statements are not fairly stated. True/False - Ans-False The auditor's report on internal control quality can express which of the following opinions regarding the quality of internal control? Qualified or Adverse only Unqualified, Qualified, or Adverse Unqualified or Adverse only Unqualified or Qualified only - Ans-Unqualified or Adverse only The standards of independence, proficiency and training, and due professional care are included in the: General standards Standards of independence Standards of reporting Standards of fieldwork - Ans-General standards Which of the following is NOT a type of audit documentation that auditors should include in their files? The audit program The engagement letter Copies of the client's financial statements Each of the above is a type of audit documentation that the auditor should include in the file - Ans-Each of the above is a type of audit documentation that the auditor should include in the file If the auditor fails to obtain a management representation letter, she can still issue an unqualified audit opinion without modifications if she obtains adequate evidence through other sources. T/F - Ans-False Audit partners in the U.S. can serve a particular "Public Company" client for no more than _____ years consecutively. 3 years 5 years 7 yearsThere is no limit on the length of time an audit partner can consecutively serve an audit client as long as she is independent from the client. - Ans-5 Years Sampling risk exists when the auditor doesn't follow proscribed sampling procedures. T/F - Ans-False An audit partner of ACE Auditors who practices in the Salt Lake City, Utah office of the firm performs the audit of TCE Co. Partner B practices in the Boise, Idaho office of the firm. She is not in an oversight role in the firm, but provides around 5-7 hours of taxrelated services per year to TCE Co. Is Partner B considered a 'Covered Member' under AICPA rules? Yes, partner B is considered a covered member There is not enough information to answer this question No, partner B is not considered a covered member - Ans-No, partner B is not considered a covered member The Auditing Standards (AS's) are issued by which standard setter? Auditing Standards Board IAASB SEC PCAOB - Ans-PCAOB Audits of financial statements provide absolute assurance that the financial statements are free of material misstatements. True/False - Ans-False The Securities Exchange Act of 1934 requires that the AICPA set rigorous auditing standards. True/False - Ans-False Which of the following is true regarding the relationship of assurance, attest, and audit services? Audit and assurance services are a subset of attest services Audit and attest services are a subset of assurance services Assurance and attest services are a subset of audit services Assurance and audit services are a subset of attest services - Ans-Audit and attest services are a subset of assurance services The term 'sampling unit' refers to the items that make up a population True/False - Ans-True [Show More]

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