Question

22) As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because: A) the financial statements have not been prepared in accordance with GAAP. B) the scope of the audit has been restricted by circumstances beyond either the client's or auditor's control. C) the financial statements have not been audited in accordance with GAAS. D) the scope of the audit has been restricted. Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing (23 financial information for decision making is commonly called A) finance B) auditing C) accounting D) economics An accountant (24 A) must possess expertise in the accumulation of audit evidence B) must decide the number and types of items to test C) must have an understanding of the principles and rules that provide the basis for preparing the accounting information D) must be a CPA a 25) In "auditing" financial accounting data, the primary concern is with: A) determining whether recorded information properly reflects the economic events that occurred during the ccounting period, B) determining if fraud has occurred. C) determining if taxable income has been calculated correctly. D) analyzing the financial information to be sure that it complies with government requirements. The trait that distinguishes auditors from accountants is the (26 A) auditor's ability to interpret accounting principles generally accepted in the United States B) auditor's education beyond the Bachelor's degree C) auditor's ability to interpret FASB Statements . .D) auditor's accumulation and interpretation of evidence related to a company's financial statements The most common way for users to obtain reliable information is to (27 A) have an internal audit B) have an independent audit C) verify all information individually .D) verify the information with management ? In the audit of historical financial statements, what accounting criteria is most common (28 A) Regulatory accounting principles B) Applicable interational accounting standards C) Applicable U.S. accounting standards D) B and C ? Which of the following services provides the lowest level of assurance on a financial statement (29 61 Page

Answer 1

22) As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because the scope of the audit has been restricted.

23) Recording, classifying, and summarising economic events in a logical manner for the purpose of providing financial information for decision making is commonly called accounting.

24) An accountant must have an understanding of the principles and rules that provide the basis for preparing the accounting information.

25) In "auditing" financial accounting data, the primary concern is with determining whether recorded information properly reflects the economic events that It occurred during the accounting period.

26) The trait that distinguishes auditors from accountants is the auditor's accumulation and interpretation of evidence related to a company's financial statements.

27) The most common way for users to obtain reliable information is to have an independent audit.

28) In the audit of historical financial statements, Applicable international accounting standards is most commonly used.