The Sarbanes-Oxley Act achieved all of the following except Select one: a. Limits the non-audit services an independent auditor may provide to a registrant. b. Requires regular inspection of audit engagements. c. Established the PCAOB. d. Identifies the FASB as the official source of GAAP for SEC filings.

The Sarbanes-Oxley Act achieved all of the following except Select one: a. Limits the non-audit services an independent auditor may provide to a registrant. b. Requires regular inspection of audit engagements. c. Established the PCAOB. d. Identifies the FASB as the official source of GAAP for SEC filings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program results audits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a list of the purposes or products of various audit engagements: Check the below image for list of purposes- Required:For each of the engagements listed, indicate (1) the type of audit (financial statement, compliance, economy and efficiency, or program results) and (2) the type of auditors you would expect to be involved.
If the auditor verifies a debtor’s account balance, which is comprised of a number of transactions, at the end of the financial period by sending a debtor’s confirmation request, this is an example of a Select one: A. substantive test of transactions B. test of controls C. substantive analytical procedure D. substantive test of balances
In the auditing process Select one: a. the criteria for evaluating information will not vary depending on the information being audited. b. the audit report communicates the auditor's findings to users. c. the types and amounts of evidence remain constant from audit to audit d. evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
Modified wording is added in the audit report when * There is a substantial doubt about an entity's ability to continue as a going concern. An auditor wants to emphasize a certain matter Reference to the report on the audit of internal control for public companies. Auditor's opinion is based in part on the report of another auditor
For each of the general audit procedures of (1) recalculation, (b) observation, (c) confirmation (accounts receivable, securities, or other assets),(d) inquiry, (e) inspection of internal documents, (f) recalculation, (g) reperformance, and (h) analytical procedures, Discuss one way the procedure could be misapplied or the auditorscould be misled in such a way as to render the work (audit evidence) misleading or irrelevant.
Under PCAOB standards (AS 3101) approved in 2017, all U.S. public companies will be required to disclose whether any critical audit matter (CAM) arose during the current period audit or state that there was none. True False
The auditors include an emphasis-of-matter paragraph in an otherwise unmodified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusifis considered a qualification of the opinion.on of this separate paragraph
Which of the following best describes the general contents of the introductory paragraph of the auditors’ report?a. A description of an audit examination, including the fact that the audit was conducted under standards established by the PCAOB.b. The auditors’ conclusion with respect to the fairness of the entity’s financial statements.c. Statements identifying the responsibility of auditors and management in the financial reporting process.d. The auditors’ conclusion with respect to the effectiveness of the entity’s internal control over financial reporting.
The AASC is an independent organization responsible for the creation and integration of the 10 Generally Accepted Auditing Standards (GAAS) A. True B. False Intended misstatement of amounts and disclosures on financial reports/statement A. Error B. Management Fraud
S1: After conducting an audit and release of the audit report, the primary responsibility on the fairness of the financial statements remains with the management and those charged with governance of the entity. S2: In recurring audits, the auditor may not send a new engagement letter unless warranted by the circumstances. S3: For financial reporting purposes, an entity's risk assessment process includes its identification, analysis, and management of risks relevant to the preparation of financial statements in accordance with applicable financial reporting framework. S4: The risk of material misstatement is broader in scope compared to business risks. S5: Analytical procedures used as substantive test focuses on detecting material misstatements. S6: The responsible party always prepare a representation that will be subjected to the validation of the practitioner. Identify which statements are correct
Which of the following statements about the auditor's responsibilities in public company audits is true as covered by the PCAOB? A. The auditor issues an opinion on the financial statements and management issues the opinion on internal control over financial reporting. B. The auditor issues an opinion on the financial statements only if internal control over financial reporting is found to be effective. C. The auditor issues an opinion on the financial statements; if those are found to be fairly stated, the auditor proceeds to issue an opinion on internal control over financial reporting. D. The auditor issues opinions on the financial statements and internal control over financial reporting.