Audit 456 - Spring 2009 - Chapter 2 Quiz

1. Which one of the following is not one of the three General

Standards?
a. Proper planning and supervision.
b. Independence of mental attitude.
c. Adequate training and profcienc.
d. !ue professional care.
2. "he generall accepted auditing standard that requires
#Adequate technical training and profcienc$ is normall
interpreted as requiring the auditor to have%
a. formal education in auditing and accounting.
b. adequate practical e&perience for the wor' being
performed.
c. continuing professional education.
d. all of the above.
3. In an case in which the (PA or the (PA)s assistants are not
qualifed to perform the wor'* a professional obligation e&ists
to%
a. acquire the requisite 'nowledge and s'ills.
b. suggest someone else who is qualifed to perform the wor'.
c. decline the engagement.
d. an of the above.
4. Statements on Auditing Standards provide auditors of
privatel held companies with ++++++ guidance regarding
the conduct of fnancial statement audits.
a. fairl e&tensive
b. some limited
c. practicall no
d. specifc and detailed
5. Prior to the passage of the Sarbanes,-&le Act* which of the
following was responsible for establishing auditing
standards?
a. Securities and .&change (ommission
b. American Institute of (ertifed Public Accountants
c. Auditing Standards /oard
d. 0ational Association of Accounting
6. Standards issued b the Public (ompan Accounting
-versight /oard must be followed b (PAs who audit%
a. all companies in the 1nited States.
b. public companies onl.
c. private and public partnerships onl.
d. private companies onl.
7. Which of the following is the least li'el form of business for
a (PA frm?
a. General partnership
b. General corporation
c. 2imited liabilit compan
d. 2imited liabilit partnership
8. "he Statements on Auditing Standards issued b the
Auditing Standards /oard%
a. are interpretations of generall accepted auditing
standards.
b. are the equivalent of laws for audit practitioners.
c. must be followed in all situations.
d. are optional guidelines which an auditor ma choose to
follow or not follow when conducting an audit.
9. Which one of the following is not one of the Standards of
3ield Wor'?
a. Adequate planning and supervision
b. 1nderstanding the entit and its environment* including its
internal controls
c. Appropriate audit evidence
d. !ue professional care
10. Which of the following best describes General Accepted Auditing
Standards?
a. 4inimum standards of performance
b. 5ules ac'nowledged b the accounting profession because
of their universal importance
c. Procedures to be used to gather evidence to support
fnancial statements
d. Pronouncements issued b the Auditing Standards /oard