Mock test

Question 1

The basic definition of auditing essentially indicates that, overall, auditing is a process to:

Answer 1

objectively obtain and evaluate evidence regarding assertions made by another party

Question 2

Which of the following best describes the concept of audit risk?

Answer 2

The risk that the auditor will provide an inappropriate opinion on financial statements that are in fact materially misstated

Question 3

The public company accounting oversight board’s role is to:

Answer 3

oversee the auditors of public companies in order to protect the interests of investors

Question 4

Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of:

Answer 4

professional skepticism

Question 5

Evaluating a perspective client requires which of the following steps?

Answer 5

Communication with the predecessor auditor

Question 6

An auditor who discovers that a client’s employees paid small bribes to municipal officials most likely would withdraw from the engagement if:

Answer 6

management fails to take the appropriate remedial action

Question 7

Which of the following is not a principle of professional conduct as defined by the code of professional conduct?

Answer 7

reporting

Question 8

Which of the following bodies ordinarily would have the authority to suspend or revoke a CPA’s license to practice public accounting?

Answer 8

A state board of accountancy