ACP AUDITING - RISK BASED APPROACH
10th Edition
ISBN: 9780357195079
Author: JOHNSTONE
Publisher: CENGAGE C
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Question
Chapter 1, Problem 22MCQ
To determine
Concept introduction: Auditing standards are made to guide the auditors to perform audits efficiently and effectively. These standards are issued by the American Institute of Certified Public Accountants (AICPA). Public company accounting oversight board (PCAOB) performs inspections of the registered external audit firms that audit public companies.
To choose:The option that correctly states the organization that performs inspections of the registered external audit firms responsible for auditing public companies.
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Firms auditing public entities are required to have periodic inspections conducted by the PCAOB.Required:a. What are the major characteristics of PCAOB inspections?b. What types of firms typically have PCAOB inspections? How frequently are these evaluations conducted?
Under AICPA rules, which of the following services would generally be permitted to be provided to an audit client provided the
general requirements are met?
Firm accepting responsibility for monitoring client's IT controls (e.g., through automated tool)
Providing advice and recommendations related to the application of an accounting standard
Staff augmentation services
Leading or supervising the audit client's accounting standards implementation team
AU-C 500 Audit Evidence, in the AICPA auditing standards refers to information produced by the entity. What must the auditor do to evaluate whether information provided by the client is sufficiently reliable?
Chapter 1 Solutions
ACP AUDITING - RISK BASED APPROACH
Ch. 1 - Prob. 1TFQCh. 1 - Prob. 2TFQCh. 1 - Prob. 3TFQCh. 1 - Prob. 4TFQCh. 1 - Prob. 5TFQCh. 1 - Prob. 6TFQCh. 1 - Prob. 7TFQCh. 1 - Prob. 8TFQCh. 1 - Prob. 9TFQCh. 1 - Prob. 10TFQ
Ch. 1 - Prob. 11TFQCh. 1 - Prob. 12TFQCh. 1 - Prob. 13TFQCh. 1 - Prob. 14TFQCh. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Prob. 17MCQCh. 1 - Prob. 18MCQCh. 1 - Prob. 19MCQCh. 1 - Prob. 20MCQCh. 1 - Prob. 21MCQCh. 1 - Prob. 22MCQCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - Prob. 26MCQCh. 1 - Prob. 27MCQCh. 1 - Which of the following factors is an example of a...Ch. 1 - Prob. 29RSCQCh. 1 - Prob. 30RSCQCh. 1 - Prob. 31RSCQCh. 1 - Prob. 32RSCQCh. 1 - Prob. 33RSCQCh. 1 - Prob. 34RSCQCh. 1 - Prob. 35RSCQCh. 1 - Prob. 36RSCQCh. 1 - Prob. 37RSCQCh. 1 - Prob. 38RSCQCh. 1 - Prob. 39RSCQCh. 1 - Prob. 40RSCQCh. 1 - Prob. 41RSCQCh. 1 - Prob. 42RSCQCh. 1 - Prob. 43RSCQCh. 1 - Prob. 44RSCQCh. 1 - Prob. 45RSCQCh. 1 - Prob. 46RSCQCh. 1 - Prob. 47RSCQCh. 1 - Prob. 48RSCQCh. 1 - Prob. 49RSCQCh. 1 - Prob. 50RSCQCh. 1 - Prob. 51RSCQCh. 1 - Prob. 52RSCQCh. 1 - Prob. 53RSCQCh. 1 - Prob. 54FFCh. 1 - Prob. 55FFCh. 1 - Enron and Arthur Andersen UP Enron was an energy...
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Similar questions
- Various organizations develop standards for audits and regulate CPA firms. Compare and contrast the roles of the AICPA, the PCAOB, and the state boards of accountancy along the following dimensions: a. Standard setting. b. Regulation of CPA firms. c. Source of authority.arrow_forwardThe AICPA has issued several audit and accounting guides for specialized industries. Do auditors have a responsibility to refer to these guidelines when auditing clients to those industries?arrow_forwardWhich of the following is not a purpose of the Center for Audit Quality which is affiliated with the AICPA? a. to serve investors b. to serve the International Accounting Standards Board (IASB) c. to serve the capital markets d. to serve public company auditorsarrow_forward
- Which of the following are reasons for the audit profession issuing auditing standards? (i) To ensure consistency of audits across different firms (ii) To provide bureaucracy for auditors to deal with (iii) To ensure quality in the standard of audits performed i, ii, iii i, ii i, iii ii, iiiarrow_forwardWhich of the following is an authoritative body that the AICPA Code of Professional Conduct authorizes to promulgate auditing and attestion?arrow_forwardWhich of the following groups is responsible for developing auditing standards for public firms in the U.S.? A. American Institution of Certified Public Accountant (AICPA)B. Public Company Accounting Oversight Board (PCAOB)C. Organizations for Economic Cooperation and Development (OECD)D. Center for Audit Quality (CAQ)arrow_forward
- Which regulatory body sets auditing standards for private companies, and also established the Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards? FASB O PCAOB AICPA SEC ASBarrow_forwardBriefly describe the key requirements included in professional auditing standards regarding the preparation and retention of audit workpapers. Which party "owns" audit workpapers: the client or the audit firm?arrow_forwardWhich section of the regulations require a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards? If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?arrow_forward
- AICPA and PCAOB Responsibilities. The creation of the PCAOB by the Sarbanes–OxleyAct has affected both the standards-setting process and the periodic review of the quality ofan audit firm’s work.Required:a. Identify the responsibilities of the AICPA, PCAOB, and SEC in the auditing standardssetting process.b. Which standard(s) provide guidance for the audits of public entities? Which standard(s)provide guidance for the audits of nonpublic entities?c. What role do the AICPA and PCAOB play in the periodic review of the quality of auditfirms’ work?arrow_forwardDistinguish between auditing standards and generally accepted accounting principles, and give two examples of each. Auditing standards: A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies and broker dealers, and by the Auditing Standards Board of the AICPA for other entities. B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment. C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections. D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.arrow_forward
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