AUD

AUD practice questions, page 36 of 41, with answer review and explanations.

Question 176

Would the following factors ordinarily be considered in planning an audit engagement's personnel requirements?

  1. Option A
  2. Option B
  3. Option C
  4. Option D

Question 177

After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review of the audit documentation. This second review usually focuses on:

  1. The fair presentation of the financial statements in conformity with GAAP.
  2. Fraud involving the client's management and its employees.
  3. The materiality of the adjusting entries proposed by the audit staff.
  4. The communication of internal control weaknesses to those charged with governance.

Question 178

The primary purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to:

  1. Enable the CPA firm to attest to the reliability of the client.
  2. Satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
  3. Minimize the likelihood of association with clients whose management lacks integrity.
  4. Anticipate before performing any fieldwork whether an unqualified opinion can be expressed.

Question 179

A CPA firm evaluates its personnel advancement experience to ascertain whether individuals meeting stated criteria are assigned increased degrees of responsibility. This is evidence of the firm's adherence to which of the following prescribed standards:

  1. Professional ethics.
  2. Supervision and review.
  3. Accounting and review services.
  4. Quality control.

Question 180

The primary purpose of establishing quality control policies and procedures for deciding whether to accept new clients is to:

  1. Minimize the likelihood of association with clients whose management lacks integrity.
  2. Monitor significant deficiencies in the design and operation of the client's internal control.
  3. Identify noncompliance with aspects of contractual agreements that affect the financial statements.
  4. Provide reasonable assurance that personnel will be adequately trained to fulfill their assigned responsibilities.