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Role of Pubic Accountant
Professional Standards
Professional Ethics
Miscellaneous
general question
100

The Sarbanes-Oxley Act requires that auditors of publicly traded companies in the United States perform an __________ audit that includes providing assurance on both the financial statements and the effectiveness of internal control over financial reporting.

Integrated

100

If financial statements are not fairly presented on an overall basis, the most likely type of audit opinion will be a(n):

Adverse

Limited

Absolute

 adverse?

100

The public accounting profession acknowledges the critical importance of independence __________ and independence ______________.

 mind and in appearance?

100

what is fraud?

intentional misstatement

100

A landmark case establishing that auditors should be held liable to third parties not in privity of contract for gross negligence, but not for ordinary negligence.

Dr. Renato Carlos H. Ermita Jr

200
The ______________________ was created in 2002 to oversee and discipline CPAs and public accounting firms that audit public (issuer) companies.
What is the Public Company Accounting Oversight Board?
200

A peer review is a study and appraisal by an independent evaluator of a CPA firm's work.  The two types of peer reviews are a(n) __________ review and a(n) _______________ review

systems and engagement reviews

200

Solicitation of CPA exam questions and answers is an example of an act _______________ to the profession.

 discreditable

200
This body ordinarily has the authority to suspend or revoke a CPA's license to practice public accounting.
What is a state board of accountancy?
200

Who usually handles cash flow and budgeting in a company?

CMA, Non-CPA

300
An examination designed to provide an opinion, the CPA's highest level of assurance that the financial statements follow GAAP, or another acceptable basis of accounting is known as an ______________.
What is an audit?
300

Primary responsibility for the financial statements lies with _______________.

management?

300
According to requirements of the NYSE, NASDAQ and ASE, _______ ____________ must consist of at least three independent and financially literate individuals, and the chairman must have accounting or financial management expertise. Responsible for appointing, compensating, and overseeing the public accounting firm.
What are audit committees?
300

For an individual CPA any __________ _____________ _________ in an attest client impairs independence. An example is an investment in the client, such as owning capital stock or providing loans to the client.

direct _____ interest

What is direct financial interest?

300

Where did the tea originated?

china

400

An audit is NOT a guarantee that there are no misstatements due to error or fraud (do not verify 100% of transactions) – an audit provides _____________ ____________ that there are no material misstatements

What is reasonable assurance?

400

Sufficiently important to influence decisions made by reasonable users of financial statements. It is dependent upon both the dollar amount and the nature of the item.

materiality

400
The communications between CPAs and their clients are ____________, but they are not privileged under common law.
What is confidential?
400
This form of organization is likely to restrict the personal liability of CPAs not involved on a particular audit that their firm has conducted
What is a limited liability partnership?
400

What is the equivalent of the word "organization" in the UK English alphabet?

organisation

500

This institution establishes auditing standards for auditors

PSA

500

The risk that the auditors may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated.

clue: ____ risk

 audit risk?

500

A __________ _____________ refers to an individual, firm, or entity that is capable of influencing an attest engagement.


____ influence

significant influence

500

The ____________ is a voluntary national organization of more than 400,000 members and establishes standards and rules to guide CPAs.

AICPA?

500

What is the only planet in our solar system that rotates clockwise?

venus