Which of the following is a responsibility of the public Accounting Oversight Board?

1
The Public Company Accounting Oversight Board [PCAOB] derives its authority to set and enforce auditing standards for public company audits from A) The American Institute of Certified Public Accountants [AICPA]. B) The Securities and Exchange Commission [SEC]. C) An Act of Congress. D) A Presidential executive order. 2
Which of the following is generally not considered one of the five business processes or cycles? A) Information technology. B) Revenue [or sales]. C) Financing. D) Inventory management. 3
Which of the following is NOT a typical responsibility for an associate/staff level auditor? A) Assisting in the development of the audit plan. B) Performing the audit procedures assigned to them. C) Preparing adequate and appropriate documentation of completed work. D) Informing the senior about any auditing or accounting problems encountered. 4
Prior to the Sarbanes-Oxley Act of 2002, the _________was responsible for creating all new auditing standards in the United States. Today, for publicly held companies, that responsibility rests with the _____________. A) Financial Accounting Standards Board [FASB]; Public Company Accounting Oversight Board [PCAOB]. B) AICPA Auditing Standards Board [ASB]; Securities and Exchange Commission [SEC]. C) AICPA Auditing Standards Board [ASB]; Public Company Accounting Oversight Board [PCAOB]. D) Financial Accounting Standards Board [FASB]; Securities and Exchange Commission [SEC]. 5
To exercise due professional care, an auditor should A) Attain the proper balance of professional experience and formal education. B) Critically review the work performed and judgment exercised by those assisting in the audit. B) Examine all available corroborating evidence supporting management's assertions. C) Design the audit to detect all instances of illegal acts. 6
What is the essential meaning of the generally accepted auditing standard that requires the auditor to be independent? A) The auditor must be without bias with respect to the auditee. B) The auditor must adopt a critical attitude during the audit. C) The auditor's sole obligation is to third parties. D) The auditor may have a direct ownership interest in his auditee's business if it is not material. 7
The principles underlying an audit conducted in accordance with GAAS as developed by the ASB and the IAASB include all of the following except A) The auditor should maintain professional skepticism and exercise professional judgment throughout the planning and performance of the audit. B) The auditor should obtain sufficient appropriate audit evidence about whether material misstatements exist in the financial statements. C) The auditor should plan and conduct the audit to obtain assurance that the financial statements are free of any misstatement. D) The auditor should have appropriate competence and capability to perform the audit. 8
The responsibility for implementing sound accounting practices and principles, maintaining an adequate internal control structure, and making fair representations in the financial statements rests primarily with the A) Senior management. B) External auditors. C) Internal audit department. D) Shareholders. 9
Which of the following is considered an example of a compliance audit? A) The examination a company's claims that its product is superior to that of a competitor on specific dimensions. B) The examination of a school district networked computer system. C) The examination of a company's adherence to government-mandated safety provisions. D) The examination of a company's financial statements. 10
Which of the following best describes the relationship between management and the board of directors? A) Management reports to the board of directors. B) The board of directors reports to management. C) Neither group is accountable to the other. D) Both groups report directly to the shareholders. 11
Which of the following best describes the roles of the American Institute of Certified Public Accountants [AICPA] and the Public Company Accounting Oversight Board [PCAOB] in establishing auditing standards? A) Auditing standards issued by the AICPA and the PCAOB are considered minimum standards of performance for auditors. B) The AICPA sets auditing standards for use in audits of nonpublic entities. C) The PCAOB sets auditing standards for use in audits of publicly held companies. D) All of the above. 12
"Mid-tier" firms A) Audit about 80% of publicly traded companies in the United States. B) Are national in their practices and have international affiliates. C) Are generally regional in their practices (such as the west coast). D) Are generally local in their practices (such as large metropolitan areas). 13
Which of the following organizations affect the environment that CPAs work in? A) The American Institute of Certified Public Accountants [AICPA]. B) The Securities and Exchange Commission [SEC]. C) The Public Company Accounting Oversight Board [PCAOB]. D) All of the above. 14
Which of the following primarily shapes the context in which auditing takes place? The American Institute of Certified Public Accountants [AICPA]. A) The Securities and Exchange Commission [SEC]. B) The entity's business environment. C) Legislation passed by Congress. 15
An "integrated audit" includes A) A special audit related to management fraud. B) A financial statement audit and an audit of internal control over financial reporting. C) A financial statement audit and a special audit related to management fraud. D) A special audit related to management fraud and an audit of internal control over financial reporting.

What is the responsibility of a public oversight board?

What are the four primary responsibilities of the PCAOB?

Which of the following is true of the Public Company Accounting Oversight Board?

What is the role of the Sarbanes