AU1- Chap 2
1. The organization that is responsible for providing oversight for auditors of public
companies is called the
A) Auditing Standards Board.
B) American Institute of Certified Public Accountants.
C) Public Oversight Board.
D) Public Company Accounting Oversight Board.
2. The Public Company Accounting Oversight Board
A) performs inspections of the quality controls of firms that audit public companies.
B) establishes auditing standards that must be followed by CPAs on all audits.
C) oversees auditors of private companies.
D) performs all of the above functions.
3. The American Institute of Certified Public Accountants (AICPA)
A) is responsible for issuing licenses to new CPAs.
B) restricts its membership to CPAs who are independent auditors.
C) sets auditing standards for both public and private companies.
D) sets rules of conduct that CPAs are required to meet.
4.
Who is responsible for establishing auditing standards for privately held
companies?
A) Securities and Exchange Commission
B) Public Company Accounting Oversight Board
C) Auditing Standards Board
D) National Association of Accounting
5.
________ are referred to as U.S. generally accepted auditing standards (GAAS).
A) AICPA auditing standards
B) SEC auditing standards
C) PCAOB auditing standards
D) Sarbanes-Oxley standards
6. Which of the following is
not
one of the responsibilities of an auditor under the
principles underlying an audit?
A) possess appropriate competence and capabilities
B) comply with ethical requirements
C) plan work and supervise assistants
D) maintain professional skepticism and exercise professional judgment
7. The AICPA principles underlying an audit are organized around four principles.
Which of the following is
not
one of those principles?