ACC 403 quiz 3

To succeed in an action against the auditor, the client must be able to show that:

A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):

The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

The principal issue to be resolved in cases involving alleged negligence is usually:

In the performance of an audit, a CPA:

Laws that have been passed by the U.S. Congress and other governmental units are:

An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

A CPA is subject to criminal liability if the CPA:

Which of the following most accurately describes fraud?

The assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:

In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

"Absence of reasonable care that can be expected of a person in a set of circumstances" defines:

The assessment against a defendant of that portion of the damage caused by the defendant's negligence is called:

Fraudulent financial reporting is most likely to be committed by whom?

"The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:

If a client has violated federal tax laws:

Which of the following statements is the most correct regarding errors and fraud?

The essence of the attest function is to:

The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:

The concept of reasonable assurance indicates that the auditor is:

Management assertions are:

The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

Which of the following is the auditor least likely to do when aware of an illegal act?

Auditors accumulate evidence to:

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

When an auditor believes that an illegal act may have occurred, the auditor should first:

An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and: