Audit Paper 2

1

Auditing standards require a public accountant to issue a report on the financial statements when the public accountant’s name is associated with the financial statements. Which of the following is an example of being associated with the financial statements?






2

A reservation in an audit report refers to which of the following?






3

Superstar auditor meets the management of XYZ public company for the first time. XYZ would like to engage Superstar as their auditor for the upcoming yearend. Superstar knows that he/she is a member of the board of directors of XYZ Company. What should Superstar do?






4

An emphasis of a matter paragraph is an extra paragraph in what type of audit report?






5

An auditor discovers that ABC Company is not following GAAP in the accounting for their capital assets. The amount is material however, not extremely material. They find that everything else in the statements is in accordance with GAAP. The auditor should give which type of report?






6

Which of the following is not considered an accounting cycle?






7

Which of the following would you not consider to be a strong source for learning and obtaining an understanding of a new clients business?






8

Which of the following is not considered to be a principal management assertion?






9

ABC Co.’s yearend is December 31st which falls on a Wednesday. Which of the following is not an example of a cutoff problem?






10

Which of the following types of audit evidence is considered to be the most relevant and reliable i.e. the strongest form of evidence?






Result

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