Question

nal auditing profession because of its continuing involvement in which of the following activities? a. The audit standard setting process for audits of publicly traded companies. b. Regulation and enforcement of the internal auditing c. Educatin and administration of the CPA exam. profession. d. Promulgation of financial accounting standards. 1-22 L0 4 Which of the following organizations is the primary organization that performs inspections of registered external audit firms that audit public companies? a. PCAOB b. CAQ c. AICPA d. FASB 1-23 LO 5 Audit quality involves which of the following? Performing an audit in accordance with GAAS to provide rea- sonable assurance that the audited financial statements and related disclosures are presented in accordance with GAAP and providing assurance that those financial statements are not materially misstated whether due to errors or fraud. a. b. Performing an audit in accordance with GAAP to provide rea- sonable assurance that the audited financial statements and related disclosures are presented in accordance with GAAS and providing assurance that those financial statements are not materially misstated whether due to errors or fraud. Performing an audit in accordance with GAAS to provide absolute assurance that the audited financial statements and related disclosures are presented in accordance with GA and providing assurance that those financial statements are not materially misstated whether due to errors or fraud c. AP 904 PM

Answer 1

Option-(a): PCAOB Reason PCAOB stands for Public Company Accounting Oversight Board. Auditing and related professional practice standards are established by PCAOB for registered public accounting firms with PCAOB to follow in the preparation and issuance of audit reports Therefore, PCAOB is the primary organization that performs inspections of registered external audit firms that audit public companies