審計(jì)一種整合方法試題chapter4final

1、Chapter 4Multiple-Choice Questi ons1. easy dWhile perform ing services for their clie nts, professi on als have a duty to provide a level of care which is:a. free from judgme nt errors.b. superior.c. greater tha n average.d. reas on able.2. easy bAuditors who fail to exercise due care in their perfo

2、rma nee of professi onal services may be liable for:a. punitive liability.b. breach of con tract.c. excess liability.d. crim inal charges.3. easy bWhich of the followi ng may give rise to a bus in ess failure?a. An erron eous audit opinion is issued.b. Man ageme nt may make ill-advised bus in ess de

3、cisi ons.c. Auditors may fail to un cover employee fraud.d. Poorly trained auditors may perform a company s audit.4. easy bA(n)failure occurs whe n an auditor issues an erron eous opinion as the result of anunderlying failure to comply with auditing standards.a. bus in essb. auditc. ethicsd. process

4、5. easy aThe standard of due care to which the auditor is expected to adhere is referred to as the:a. prude nt pers on con cept.b. com mon law doctri ne.c. due care con cept.d. vigila nt pers on con cept.6.Auditors may be liable to their clie nts for:easy aPun itive damagesCompe nsatory damagesa. Ye

5、sYesb. NoNoc. YesNod. NoYes7. easy bUnder the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not in clude:a. employees of the CPA firm.b. employees of the audit clie nt.c. other CPA firms en gaged to do part of the audit work.d. specialists

6、employed by the CPA firm to provide tech ni cal advice on the audit.8.“ Absence of reasonable care that can be expected of a person in a set of circumstanceseasya.pecuniary negligence.db.gross negligence.c.extreme negligence.d.ordinary negligence.9.An example of a breach of contract would likely inc

7、lude:easya.an auditor refsusal to return the client gesneral ledger book until the client paid lastcb.year s audit fees.a bank sclaim that an auditor had a duty to uncover material errors in financial statements that had been relied on in making a loan.c.a CPA firm s failure to complete an audit on

8、the agree-dupon date because the firm had a backlog of other work which was more lucrative.d.an auditor claims that the client staff is unqualified.10.Privity of contract exists between:easya.auditor and the federal government.cb.auditor and third parties.c.auditor and client.d.auditor and client at

9、torney.11.Audit contracts (engagement letters):easya.may be either oral or written.bb.must be written.c.must be written and notarized.d.must be written if the client is regulated by the Securities and Exchange Commission.12.An individual who is not party to the contract between a CPA and the client,

10、 but who is knowneasyby both and is intended to receive certain benefits from the contract is known as:da.a third party.b.a common law inheritor.c.a tort.d.a third-party beneficiary.13.Laws that have been developed through court decisions rather than by passage througheasylegislative bodies are:da.s

11、tatutory laws.b.judicial laws.c.federal mon laws.14.Laws that have been passed through state legislatures are:easya.statutory laws.ab.judicial laws.c.federal mon laws.15.The assessment against a defendant of the full loss suffered by a plaintiff regardless of othereasyparties lia

12、bility in the wrongdoing is called:da.separate and proportionate liability.b.shared liability.c.unitary liability.d.joint and several liability.16. easy c risk represents the possibility that the auditor concludes after conducting an adequate audit that the financial statements were fairly stated wh

13、en they were actually misstated.a. Businessb. Processc. Auditd. Failure17. The assessment against a defendant of that portion of the damage caused by the defendant s easynegligence is called:aa.separate and proportionate liabilityb.joint and several liability.c.shared liability.d.unitary liability.1

14、8. easy as defenses contends lack of privity of contract?In third- party suits, which of the auditora. Lack of duty.b. Non-negligent performance.c. Contributory negligence.d. Absence of causal connections.19. Which of the following auditor desfenses usually means non-reliance on the financial easy s

15、tatements by the user?ca.Lack of duty.b.Non-negligent performance.c.Lack of causal connections.d.Contributory negligence.20. easy a21.easy bThere are a number of things that the AICPA, representing the profession as a whole, can do to reduce the CPA s exposure to lawsuits. One of them is to:a. sanct

16、ion members for improper conduct and performance.b. deal only with clients possessing integrity.c. hire qualified auditors and train and supervise them.d. perform quality audits.In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a

17、material fraud if:a. statistical sampling techniques were not used on the audit engagement.b. the auditor planned the audit in a negligent manner.c. accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.d. the fraud was perpe

18、trated by one employee who circumvented the existing internal controls.22. Which of the following most accurately describes constructive fraud?mediuma.Absence of reasonable care.bb.Lack of slight care.c.Knowledge and intent to deceive.d.Extreme or unusual negligence without the intent to deceive23.W

19、hich of the following most accurately describes fraud?mediuma.Absence of reasonable care.cb.Lack of slight care.c.Knowledge and intent to deceive.d.Extreme or unusual negligence without the intent to deceiveAren s/Elder/Beasley24. medium aWhich of the followi ng is an illustratio n of liability to c

20、lie nts un der com mon law?a. Clie nt sues auditor for not discoveri ng a theft of assets by an employee.b. Bank sues auditor for not discovering that borrower s fsianEimissaaete nc. Combined group of stockholders sue auditor for not discovering materially misstated finan cial stateme nts.d. Federal

21、 gover nment prosecutes auditor for knowin gly issu ing an in correct audit report.25. medium cWhich of the following is an illustration of liability under the federal securities acts?a. Clie nt sues auditor for not discoveri ng a theft of assets by an employee.b. Bank sues auditor for not discoveri

22、ng that borrower s financial statements are misstatec. Comb ined group of stockholders sue auditor for not discoveri ng materially misstatedfinan cial stateme nts.d. auditor sues clie nt for not cooperati ng duri ng en gageme nt.26. medium cA third-party beneficiary is one which:a. has failed to est

23、ablish legal sta nding before the court.b. does not have privity of con tract and is unknown to the con tract ing parties.c. does not have privity of con tract, but is known to the con tract ing parties and inten ded to ben efit un der the con tract.d. may establish legal sta nding before the court

24、after a con tract has bee n con summated.s tax return, the CFca.the penalties the client owes the IRS.b.the pen alties and in terest the clie nt owes.c.the pen alties and in terest the clie nt owes, plus the tax preparati on fee the CPA chargedd.the pen alties and in terest, the tax preparati on fee

25、, and the amou nt of tax that was un derpaid.27.If the CPA n eglige ntly failed to properly prepare and file a clie ntmediumliable for:28.Historically, most major lawsuits against CPA firms have dealt with:medium da. disputes over in come tax preparati on services.b. disputes aris ing in the perform

26、a nee of MAS con tracts.c. disputes over the accuracy of bookkeep ing services.d. audited and un audited finan cial stateme nts.29. medium cPrivilegedcommu ni cati onbetwee n clie nt and auditor is:a. available in all federal courts.b. not available in any court.c. available in several states.d. ava

27、ilable for matters in volvi ng in come taxes on ly.Gross n eglige nee may con stitute con structive fraudFraud requires the intent to deceiveAll fraud should be detected during audita.YesYesNob.NoYesYesc.YesNoYesd.NoNoNo30.Which of the follow ing stateme nts is true?medium31.Failure of a party to me

28、et its obligati ons, thereby caus ing injury to ano ther party to whom a dutymediumwas owed, is:ba.breach of con tract.b.tort acti on for n eglige nce.c.con structive fraud.d.fraud.32.Tort acti ons aga inst CPAs are more com mon tha n breach of con tract acti ons because:mediuma.there are more torts

29、 tha n con tracts.db.the burde n of proof is on the auditor rather tha n on the pers on suing.c.the pers on suing n eed prove only n eglige nce.d.the amou nts recoverable are n ormally larger.33.The prin cipal issue to be resolved in cases in volv ing alleged n eglige nce is usually:mediuma.the amou

30、 nt of the damages suffered by pla in tiff.cb.whether to impose pun itive damages on defe ndant.c.the level of care exercised by the CPA.d.whether defe ndant was in volved in fraud.34.In the auditing environment, failure to meet auditing standards is often:mediuma.an accepted practice.cb.a suggesti

31、on of n eglige nce.c.con clusive evide nce of n eglige nce.d.tan tamou nt to crim inal behavior.35.A com mon way for a CPA firm to dem on strate its lack of duty to perform is by use of a(n):mediuma.expert wit ness testim ony.bb.audit con tract, or en gageme nt letter.c.man ageme nt represe ntati on

32、 letter.d.confirmation letter.36.The prude nt pers on con cept establishes that:medium aa. the CPA firm is n ot expected to make only perfect judgme nts.b. an audit in accordance with GAAS is subject to limitations and cannot be relied upon for complete assurance that all errors and irregularities w

33、ill be found.c. the courts do not require that the auditor become the in surer or guara ntor of the accuracy of the stateme nts.d. all CPAs are con sidered prude nt.mediuma.the auditor was fraudule nt.db.the auditor was grossly n eglige nt.c.there was a writte n con tract.d.there is a close causal c

34、onn ecti on betwee n the auditorsuffered by the clie nt.37.To succeed in an acti on aga inst the auditor, the clie nt must be able to show that:s behavior and the damagesActual and pote ntial stockholdersa.Yesb.Noc.Yesd.Nothird partiesin com mon law is:38.A group typically in cluded asmediumEmployee

35、s of clie nt Yes No No Yes39. mediumThe major conclusion of the 1931 Ultramares case was that:a. ordinary negligenee is insufficient for liability to third parties.b. ordinary negligence is sufficient for liability to third-party beneficiaries.c. fraud or gross negligence is sufficient for liability

36、 to third parties.d. auditors have no liabilities to third parties.aA primary ben eficiaryA known third partya.YesYesb.NoNoc.YesNod.NoYes40.Un der com mon law, a foresee n user would be treated the same as:medium41. medium bA broad interpretation of the rights of third-party beneficiaries holds that

37、 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 con tract. This is known as the con cept of:a. foresee n users.b. foreseeable users.c. expected users.d. four-party con tracts.42.Which of the auditor

38、desenses is ordinarily not available when lawsuits are filed by a thirdmediumparty?ba.Abse nce of causal conn ecti ons.b.Con tributory n eglige nce.c.Non-n eglige nt performa nce.d.Lack of duty.ca.any pote ntial user group.b.a legally protected class.c.a reas on ably limited and ide ntifiable user g

39、roup.d.a reas on ably limited and established user group.43.According to the principle established by the Restatement of Torts case, foreseen users must bemediummembers of:44.The in creased litigati on un der the federal securities laws has resulted from:mediumcThe strict liabilitysta ndards imposed

40、 onThe availability ofCPAs by the securitiesclass-acti on litigati on laws An excess of attor neysa.YesYesYesb.YesNoNoc.YesYesNod.NoNoNo45. medium aWhich of the follow ing stateme nts about the Securities Act of 1933 is not true?a. The amou nt of the pote ntial recovery is the orig inal purchase pri

41、ce plus pun itive damages.b. It deals with the in formati on in registrati on stateme nts and prospectuses.c. It con cer ns only the report ing requireme nts for compa nies issu ing new securities.d. The only parties that can recover from auditors are origi nal purchasers of securities.ba.the date o

42、f the financial statements.b.the date the registration statement becomes effective.c.the date of the audit report.d.one year beyond the date of the financial statements.46. Under the Securities Act of 1933, the auditor responsibility for making sure the financial mediumstatements were fairly stated

43、extends to:aa. b. c. d.Every company with securities traded on national and over-the-counter exchanges.Every corporation.Every company issuing new securities.Every corporation which is chartered by a state government.48.The Securities and Exchange Commission can impose all but which of the following

44、 sanctions?mediuma.Suspend a CPA from auditing SEC clients.db.Prohibit a CPA from accepting new SEC clients for a period of time.c.Require a CPA to participate in continuing-education programs and make changes in their practice.d.Revoke a CPA license.47. Under the Securities Exchange Act of 1934, wh

45、ich type of organizations is required to submit medium audited financial statements to the SEC?49. medium bThe Foreign Corrupt Practices Act (FCPA) of 1977:a.requires auditors to review and evaluate systems of internal control as a part of an audit.b.requires SEC registrants to maintain a reasonably

46、 complete and accurate set of recordsand an adequate system of internal control.c.requires auditors to review client s internal control system in a manner which is thoroughenough to judge whether client meets the requirements of the FCPA.d.requires auditors to file a report with the S EC if client s

47、 internal control system isinadequate.50. (SOX) medium aWhile the Foreign Corrupt Practices Act of 1977 remains in effect, it has been largely superseded by which of the following?a. The Sarbanes-Oxley Act of 2002.b. The Racketeer Influenced and Corrupt Organization Act.c. The Federal False Statemen

48、ts Statute. d. The Federal Mail Fraud Statute.51. mediumWhich of the following is not likely a factor in the increase in the number of lawsuits and sizes of awards to plaintiffs related to auditor behavior?ca. Increased awareness of auditor responsibilities by users of financial statements.b. CPA fi

49、rms are more willing to settle lawsuits.c. Difficulty judges and jurors have in understanding legal matters.d. Increased consciousness on the part of the SEC for its responsibility to protect investors.52. medium bHistorically, one of the leading case of criminal action against CPAs is the: a. 1136

50、Tenants case.b. United States v. Simon case.c. Escott et al. v. Bar Chris case, aka Bar Chris.d. Ultramares Corporation v. Touche case.53.A major purpose of federal securities regulations is to:medium vide sufficient reliable information to the investing public who purchases securities ina the

51、marketplace.b.establish the qualifications for accountants who are members of the profession.c.eliminate incompetent attorneys and accountants who participate in the registration of54.medium c55.medium c56. medium asecurities to be offered to the public.d. provide a set of uniform sta ndards and tes

52、ts for accou ntan ts, attor neys, and others who practice before the Securities and Excha nge Commissio n.A CPA is subject to crimi nal liability if the CPA:a. refuses to tur n over requested audit docume ntati on to a clie nt.b. performs an audit in a n eglige nt mann er.c. willfully omits a materi

53、al fact from a set of finan cial stateme nts.d. willfully breaches a con tract with a clie nt.Which of the following best describes a trend in litigation involving CPAs?a. A CPA cannot render an opinion unless the CPA has audited all affiliates of a company.b. A CPA may not successfully assert that

54、the CPA had no motive to be part of a fraud.c. A CPA may be exposed to crim inal as well as civil liability.d. A CPA is primarily resp on sible for a clie ntes filed wfoothetSEC.Ordinary negligenceGross n eglige ncea.YesYesb.NoNoc.YesNod.NoYesTort acti ons can be based on which of the follow ing?57.The preferred defe nse in third-party suits is:mediuma.lack of duty to perform.bb.non-n eglige nt performa nce.c.abse nce of causal conn ecti on.d.clie nt fraud.58.