Question

1. When researching the requirements to become a CPA, one should first look at

a) AICPA rules and regulations on professional careers

b) GAAP rules

c) PCBOA laws

d) State laws

2. When a new auditing standard is proposed it is:

a) immediately adopted

b) reviewed by the Committee on Audit Standards of the AICPA for adoption

c) sent to members for review and input

d) sent to the IRS for review and adoption by the Auditing Oversight Board

3. Auditing standards for non-public companies are set by

a)AICPA

b)PCAOB

c)FASB

d)the state where the auditor is licensed

4. Audit risk represents the risk that

a)Auditors will issue an adverse audit report, when in fact, they should have issued an unqualified opinion

b)Auditors will issue a disclaimer of opinion, when in fact, they should have issued an adverse opinion

c)Auditors will give an opinion that the financial statements are not fairly stated, when in fact, they were fairly stated

d)Auditors will give an opinion that the financial statements are fairly stated, when in fact, they were materially misstated

Answer 1

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1. When researching the requirements to become a CPA, one should first look at
State Laws.
2. When a new auditing standard is proposed it is:
a) immediately adopted.
3. Auditing standards for non-public companies are set by
a)AICPA
4. Audit risk represents the risk that
b)Auditors will issue a disclaimer of opinion, when in fact, they should have issued an adverse opinion