The Role of the Public Accountant in the American Economy
True / False Questions
1. Independent audits of today place more emphasis on sampling than did the audits of the 19th century.
2. The American Institute of Certified Public Accountants issues CPA certificates and permits CPAs to practice.
3. A company is either audited by the GAO or internal auditors, but not both.
4. The SEC does not pass on the merits of the securities that are registered with the agency.
5. The American Institute of Certified Public Accountants has the primary authority to establish accounting standards.
6. An annual peer review is a requirement of the AICPA.
7. Many small companies elect to have their financial statements reviewed by a CPA firm, rather than incur the cost of an audit.
8. Staff assistants in CPA firms generally are responsible for planning and coordinating audit engagements.
9. The Sarbanes-Oxley Act requires that auditors of publicly traded companies in the United States perform an integrated audit that includes providing assurance on both the financial statements and on compliance with laws and regulations.
10. Auditing is frequently only a small part of the practice of local CPA firms.
Multiple Choice Questions
11. A summary of findings rather than assurance is most likely to be included in a(n):
A. Agreed-upon procedures report.
B. Compilation report.
C. Examination report.
D. Review report.
12. The Statements on Auditing Standards have been issued by the:
A. Auditing Standards Board.
B. Financial Accounting Standards Board.
C. Securities and Exchange Commission.
D. Federal Bureau of Investigation.
13. The risk associated with a company's survival and... [continues]
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