Course Auditing ITest Quiz 2Instructions This quiz consists of 30 multiple choice questions. The first 15 questions cover the material in Chapter 3. The second 15 questions cover the material in Chapter 4. Be sure you are in the correct Chapter when you take the quiz.Question 1 Wh

Course Auditing I
Test Quiz 2
Instructions This quiz consists of 30 multiple choice questions. The first 15 questions cover the material in Chapter 3. The second 15 questions cover the material in Chapter 4. Be sure you are in the correct Chapter when you take the quiz.
Question 1 When there is a justified departure from GAAP which is considered material, the auditor should issue a(n):
Question 2 Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:
Question 3 The auditor's responsibility section of the standard audit report states that the auditor is:
Question 4 The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:
Question 5 When a qualified or adverse opinion is issued, the qualifying paragraph is inserted:
Question 6 An audit of historical financial statements most commonly includes the:
Question 7 After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:
Question 9 Auditing standards for public companies are established by the:
Question 10 The standard unqualified audit report for a non-public entity must:
Question 11 The auditor's responsibility section of the standard unqualified audit report states that the audit is designed to:
Question 12 An adverse opinion is issued when the auditor believes:
Question 13 When dealing with materiality and scope limitation conditions:
Question 14 Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:
Question 15 The standard unqualified audit report:
Question 16 The underlying reason for a code of professional conduct for any profession is:
Question 17 Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.
Question 18 A CPA firm may charge a contingent fee for:
Question 19 When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:
Question 20 A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:
Question 21 An auditor's independence is considered impaired if the auditor has:
Question 22 Interpretations of the rules regarding independence allow an auditor to serve as:
Question 23 ________ means that a person acts according to conscience, regardless of the situation.
Question 24 The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a “direct financial interest” of the CPA?
Question 25 The AICPA's Code of Professional Conduct requires independence for all:
Question 26 The members of a client's “audit committee” should be:
Question 27 “Independence” in auditing means:
Question 28 Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client's CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?
Question 29 In determining independence with respect to any audit engagement, the ultimate decision as to whether or not the auditor is independent must be made by the:
Question 30 Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client's consent as a result of a:

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