sample：

1. The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Demand for Assurances


2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


3. Auditors should conduct their work with an attitude of professional skepticism.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


6. In all states, a CPA must have completed at least 150 hours of college semester hours to receive their license.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Professional and Regulatory Organizations


7. The Center for Audit Quality was started by the International Federation of Accountants.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Professional and Regulatory Organizations


8. The Center for Audit Quality has the primary authority to set auditing standards.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Professional and Regulatory Organizations


9. In an audit, management is considered the “client”.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


10. Auditing is the process of attesting to assertions about economic actions and events.
        a.         True
        b.         False
ANSWER:          True
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


11. Auditing is the process of verifying the accuracy of the financial statements.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


12. Management may have incentive to bias financial information, but the various users of the statements are not likely to have conflicting interests in the financial information.
        a.         True
        b.         False
ANSWER:          False
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Overview of the External Auditing Profession




46. Which the following is not a reason for a public company to receive an audit?
        a.         Potential bias in providing information.
        b.         Closeness between a user and the organization.
        c.         Complexity of the processing systems.
        d.         Remoteness between a user and the organization.
ANSWER:          b
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Demand for Assurances


47. What is the term used to describe a systematic process of objectively obtaining evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users?
        a.         Internal audit.
        b.         Financial statement audit.
        c.         External audit.
        d.         Program audit
ANSWER:          b
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Overview of the External Auditing Profession


48. An Integrated Audit Report provides opinion(s) on which of the following?
        a.         The financial statements.
        b.         Internal controls.
        c.         Both financial statements and internal controls.
        d.         Neither financial statements or internal controls.
ANSWER:          c
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Scope of Services


49. Which one of the following organizations is recognized for providing guidance on a framework for internal control ?
        a.         AICPA.
        b.         PCAOB.
        c.         IAASB.
        d.         COSO..
ANSWER:          d
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-04 - LO: 01-04
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Organizations Affecting the External Auditing Profession


50. Which phase of the audit opinion formulation process is most commonly thought of as auditing by the general public?
        a.         Performing risk assessment.
        b.         Obtaining evidence about internal controls.
        c.         Obtaining substantive evidence about accounts.
        d.         Making reporting decisions..
ANSWER:          c
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Overview of the External Auditing Profession


51. Which one of the following is not a primary driver of audit quality?
        a.         Skills and personal qualities of audit staff.
        b.         Reasonable audit fees.
        c.         Effective audit processes..
        d.         Audit firm culture.
ANSWER:          b
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-05 - LO: 01-05
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Audit Quality


52. Who are the users of the financial statements?
        a.         Management.
        b.         Auditors.
        c.         Taxing Authorities.
        d.         Both A and C.
ANSWER:          d
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


53. Which one of the following is a factor that creates a need for an independent auditor's assessment of the financial statement presentation?
        a.         Complexity of transactions affecting the financial statements.
        b.         Lack of criteria on which to base information.
        c.         Remoteness of the user from the organization.
        d.         Both A and C.
        e.         Both A and B.
ANSWER:          d
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Overview of the External Auditing Profession


54. What can users of the audit report reasonably expect from the audited financial statements?
        a.         The financial statements are complete and contain many of the important financial disclosures.
        b.         The financial statements are presented fairly according to the substance of GAAP.
        c.         The financial statements are free from all errors.
        d.         All of the above.
        e.         None of the above.
ANSWER:          b
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


55. Which one of the following is not a management expectation for independent auditors?
        a.         An outside source of expertise on accounting matters.
        b.         Individuals who perform tests and draw conclusions on assertions.
        c.         A participant in management decision making.
        d.         A provider of a written communication.
ANSWER:          c
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


56. According to the FRC which of the following attributes contributes to the reliability and usefulness of audit reporting?
        a.         The audit methodology is well structured.
        b.         Quality technical support is available when auditors require guidance.
        c.         Auditors appropriately conclude as to the truth and fairness of the financial statements.
        d.         The audit work is effectively reviewed.
ANSWER:          c
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-05 - LO: 01-05
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Audit Quality


57. To conduct an audit, what must an auditor do?
        a.         Comply with relevant ethical standards.
        b.         Exercise perfect judgment.
        c.         Obtain sufficient appropriate evidence to provide absolute assurance.
        d.         All of the above.
ANSWER:          a
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


58. An “integrated audit” expresses an opinion on which of the following?
        a.         The company’s internal controls.
        b.         The company’s financial statements.
        c.         The company’s compliance with its rules and policies.
        d.         Both A and B.
ANSWER:          d
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


59. What is the first phase in an audit?
        a.         Client acceptance or client continuance.
        b.         Understanding the client.
        c.         Understanding internal controls.
        d.         Testing of account balances.
ANSWER:          a
POINTS:          1
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Auditing Defined


60. How is the audit report referred to when the auditor has no reservations about management’s financial statements?
        a.         An unqualified report.
        b.         A qualified report.
        c.         An adverse report.
        d.         An integrated report.
ANSWER:          a
POINTS:          1
LEARNING OBJECTIVES:          AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS:          United States - BUSPORG: Analytic
STATE STANDARDS:          United States - AK - AICPA BB-Critical thinking
TOPICS:          Overview of the External Auditing Profession