acc 403 midterm exam answers

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ACC 403 Midterm Exam Answers Purchase From here: http://www.homeworkarena.com/acc-403-midterm-exam-homework- ACC 403 Midterm Exam Homework Set 1,2 • Question 1 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: • Question 2 ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate. • Question 3 The use of the Certified Public Accountant title is regulated by: • Question 4 The Sarbanes-Oxley Act applies to which of the following companies? • Question 5 Three common types of attestation services are: • Question 6 The three requirements for becoming a CPA include all but which of the following? • Question 7 Members of the Public Company Accounting Oversight Board are appointed and overseen by: • Question 8 Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

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ACC 403 Midterm Exam Answers

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ACC 403 Midterm Exam Answers

Purchase From here:http://www.homeworkarena.com/acc-403-midterm-exam-homework-

ACC 403 Midterm Exam Homework Set 1,2 Question 1Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: Question 2________ risk reflects the possibility that the information upon which the business decision was made was inaccurate. Question 3The use of the Certified Public Accountant title is regulated by: Question 4The Sarbanes-Oxley Act applies to which of the following companies? Question 5Three common types of attestation services are: Question 6The three requirements for becoming a CPA include all but which of the following? Question 7Members of the Public Company Accounting Oversight Board are appointed and overseen by: Question 8Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB: Question 9Hansen Corporations stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansens management hires a CPA to perform an independent audit of Hansens financial statements. The primary objective of this audit is to provide assurance to the: Question 10Which of the following are audit standards used in professional practice by audit firms? Question 11Statements on Auditing Standards issued by the AICPAs Auditing Standards Board are: Question 12In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that: Question 13The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to: Question 14As a result of managements refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because: Question 15If the phrase except for is present in the opinion paragraph of the audit report, the auditor has issued a(n): Question 16Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the: Question 17Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a: Question 18Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern? Question 19The members of a clients audit committee should be: Question 20Which of the following services are allowed by the SEC whenever a CPA also audits the company? Question 21A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to: Question 22Under the AICPA independence rules, the auditor: Question 23Independence is required of a CPA when performing: Question 24When CPAs are able to maintain their actual independence, it is referred to as independence in: Question 25The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.ACC 403 Midterm Exam Part 2 Question 1The principal issue in cases involving alleged negligence is usually: Question 2Absence of reasonable care that can be expected of a person in a set of circumstances defines: Question 3While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following? Question 4The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the: Question 5 Question 6The laws that have been developed through court decisions are called: Question 7The auditors best defense when material misstatements are not uncovered is to have conducted the audit: Question 8The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to: Question 9A questioning mindset: Question 10The posting and summarization audit objective is the auditors counterpart to managements assertion of: Question 11The concept of reasonable assurance indicates that the auditor is: Question 12If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the: Question 13The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is the definition of: Question 14Appropriateness of evidence is a measure of the: Question 15The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient evidence must: Question 16When auditors use documentation to support recorded transactions and amounts, the process is usually called: Question 17A benefit obtained from using industry averages is that it provides a(n): Question 18When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective? Question 19Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence? Question 20Business risk: Question 21In making client acceptance decisions, the audit firm will consider: Question 22If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm? Question 23The auditor is likely to accumulate more evidence when the audit is for a company: Question 24Most auditors assess inherent risk as high for related parties and related-party transactions because: Question 25The two major factors affecting acceptable audit risk are: