Auditing Essay

4331 WordsApr 13, 201518 Pages
Chapter 1: Auditing: Integral to the Economy 1. The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. TRUE 2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence. TRUE 3. Auditors should conduct their work with an attitude of professional skepticism. TRUE 4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting. TRUE 5. An integrated audit requires the auditor to assess the effectiveness of internal controls. TRUE 6. In all states, a CPA must have completed at least 150 hours of college semester hours to receive their license. FALSE 7. The Center for Audit Quality was started by the International Federation of Accountants. FALSE 8. The Center for Audit Quality has the primary authority to set auditing standards. FALSE 9. In an audit, management is considered the "client". FALSE 10. Auditing is the process of attesting to assertions about economic actions and events. TRUE 11. Auditing is the process of verifying the accuracy of the financial statements. FALSE 12. Internal auditing only provides assurance about internal control effectiveness. FALSE 13. Auditing exists because users need unbiased information on which to assess management performance and make economic decisions. TRUE 14. A free market can only exist if there is sharing of perfectly reliable information. FALSE 15. Users rely on the auditors' independent assessment of financial statement presentation because few users have direct knowledge of the company's operations. TRUE 16. The PCAOB is a

More about Auditing Essay

Open Document