Auditing Mock Exam
Course Introduction
Auditing is a comprehensive course that explores the principles, procedures, and ethical standards of the auditing profession. It covers the audit process from planning and risk assessment to evidence collection, evaluation, and reporting. Students learn about internal and external auditing, legal and regulatory frameworks, professional standards, and the role of auditors in detecting and preventing fraud. The course emphasizes critical thinking and analytical skills, preparing students to assess financial statements and internal controls, and to communicate audit findings effectively to stakeholders.
Recommended Textbook
Ethical Obligations and Decision Making in Accounting Text and Cases 2nd Edition by Mintz
Available Study Resources on Quizplus
8 Chapters
609 Verified Questions
609 Flashcards
Source URL: https://quizplus.com/study-set/2571 Page 2
Chapter 1: Ethical Reasoning Implications for Accounting
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/51177
Sample Questions
Q1) Greatest good for the greatest number of people is the theory of __________.
A)Rights
B)Deontology
C)Utilitarianism
D)Justice Answer: C
Q2) If one's reputation is tainted it may create a:
A)Conflict of interests
B)Loss of independence
C)Lack of trust
D)All of the above
Answer: C
Q3) The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over harms is:
A)Act Utilitarianism
B)Rule Utilitarianism
C)Rights Theory
D)Justice
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Accountants Ethical Decision Process and Professional Judgment
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/51176
Sample Questions
Q1) The main accounting issue in the Juggyfroot case is:
A)How to account for prepaid capacity
B)How to account for and report special purpose entities
C)How to account for inventory declines
D)How to account for investments in marketable securities
Answer: D
Q2) The failure of Andersen's audit of Enron can be attributed to all of the following except for:
A)Failure to approach the audit with professional skepticism
B)Lack of audit independence
C)Failure to assign a sufficient number of staff to the audit
D)Having a conflict of interests
Answer: C
Q3) At which stage of Kohlberg's view on ethical development is an individual's actions influenced by group norms?
A)Stage 1
B)Stage 2
C)Stage 3
D)Stage 4
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Corporate Governance and Ethical Management
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/51175
Sample Questions
Q1) Section 404 of the Sarbanes-Oxley Act requires that management:
A)Assess the company's internal controls
B)Certify the financial statements
C)Disclose all executive compensation
D)All of the above
Answer: A
Q2) An Internet Company has a chance to expand its business into a developing country.This chance would make money for its shareholders, as it would be the first Internet Company allowed in the country.However, the conditions demanded by the country is that the Internet Company must turn over to the government the history of Internet sites visited by its citizens.Additionally the Internet Company must also censor Internet sites requested through the search engine.In the United States and other countries, the Internet Company would not monitor, censor, or turn over a history of Internet sites to any government. What should the Internet Company do? Use ethical theories and ethical decision making model to back up your decision.
Answer: Answers will vary
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Aicpa Code of Professional Conduct
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/51174
Sample Questions
Q1) The committee that first recommended that the profession institute a voluntary program for peer review was:
A)Metcalf committee
B)Cohen committee
C)The House Subcommittee on Oversight and Investigations
D)Mintz and Morris committee
Q2) Which would not have to follow the independence of a CPA, according to Interpretation 101-1?
A)CPA's spouse
B)CPA's spousal equivalent
C)CPA's distant cousin
D)CPA's dependents
Q3) The Federal Trade Commission has been responsible for loosening which of the following rules of conduct in the accounting profession?
A)Commissions
B)Contingent Fees
C)Advertising and solicitation
D)All of the above
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Audit Responsibilities and Accounting Fraud
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/51173
Sample Questions
Q1) Which of the following is not correct about materiality?
A)The concept of materiality recognizes that some matters are more important for fair presentation of financial statements
B)Materiality judgments are made in light of surrounding circumstances and necessarily involve quantitative and qualitative judgments
C)Materiality should be predictable from audit to audit so that the readers of financial statements know what constitutes materiality
D)An auditor's consideration of materiality is influenced by the auditor's perception of the need of the readers of the financial statements
Q2) The Marcus Yamabuto case deals with issues related to:
A)Premature revenue recognition
B)Franchise revenue accounting
C)Special purpose entities
D)All of the above
Q3) What are the audit committee's responsibilities with respect to fraud and risk assessment?
Q4) Explain the auditors' responsibilities to assess fraud including the role of professional judgment.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Legal and Regulatory Obligations in an Ethical Framework
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/51172
Sample Questions
Q1) In the case of SEC v.Halliburton & KBR, the commission charged Halliburton & KBR with:
A)Bribing Nigerian government officials to look the other way while the companies developed and presented fraudulent financial statements
B)Bribing Nigerian government officials in order to obtain construction contracts
C)Bribing Nigerian government officials to off-load merchandise at the country's piers
D)All of the above
Q2) Which two organizations were formed to deal with the accounting profession's credibility?
A)AICPA and Macdonald
B)Treadway and SEC
C)Treadway and AICPA
D)Treadway and Macdonald
Q3) Explain the duty of care of managers and directors.Include in your explanation the role of ethics in making decisions that support such a level of care.
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Earnings Management and the Quality of Financial Reporting
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/51171
Sample Questions
Q1) The expression, "Too many corporate managers, auditors, and analysts are participants in a game of nods and winks" is attributable to:
A)Barry Minkow
B)Jerry Seinfeld
C)Bernie Ebbers
D)Arthur Levitt
Q2) Which of the following authors(s) focus(es) on "management's intent to deceive the stakeholders by using accounting devices to positively influence reported earnings."?
A)Dechow and Skinner
B)Healy and Wahlen
C)Schipper
D)Thomas
E)McKee
Q3) Discuss all the factors an auditor should consider in making a materiality judgment.
Q4) The quality of financial reporting is an important issue in the chapter.Explain how and why the quality of financial reporting is an underlying issue in the frauds discussed in the chapter.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Financial Reporting: Ethics and Corporate Governance Considerations
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/51170
Sample Questions
Q1) A member body of the International Federation of Accountants (IFAC) should follow the provisions in the Code of Ethics for Professional Accountants (IFAC Code) when each of the following exists except for:
A)A member body of IFAC applies less stringent standards than those stated in the IFAC Code
B)The member body is prohibited by law or regulation from complying with certain parts of the Code and complies with all other parts of the code
C)The member body is prohibited by law or regulation from complying with certain parts of the Code and does not comply with all other parts of the code
D)All of the above
Q2) The trigger event that led to the disclosure of the scandal at Parmalat was:
A)Almost 4 billion of company funds that were supposed to be held in an account at Bank of America did not exist.
B)The company stuffed the channels with product that it eventually was not purchased by customers.
C)Parmalat officers violated the Foreign Corrupt Practices Act.
D)The company sold sour milk.
To view all questions and flashcards with answers, click on the resource link above.
Page 10