Which of the following best characterizes an auditors exercise of professional skepticism?

An internal auditor is likely to be more concerned with _________________ than the external auditor. 

The efficiency of operations.

Forensic audits include all of the following except 

Manufacturers' assertions about product quality.

Governmental auditing often extends beyond examinations leading to the expression of an opinion on the fairness of financial presentation and includes audits of efficiency, effectiveness, and 

A typical objective of an operational audit is for the auditor to 

Make recommendations for improving performance.

What is the general character of the work conducted in performing a forensic audit for a company?

Detecting or deterring fraudulent activity.

Which of the following best describes the concept of risk assessment on which auditors can provide independent assurance?

Whether management has systems in place to evaluate and effectively manage the entity's business risks.

The largest public accounting firms typically are structured as

Limited liability partnerships.

Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of 

Due professional care requires auditors to 

Exercise professional skepticism during the audit.

Due professional care requires 

Auditors to plan and perform their duties with the skill and care that is commonly expected of accounting professionals.

The accuracy of information included in footnotes accompanying the audited financial statements issued by a company whose shares are traded on a stock exchange is the primary responsibility of 

The company's management.

The primary responsibility for the adequacy of disclosures in the financial statements of a publicly held company rests with the

Management of the company.

The Audit Committee consists of 

Members of the Board of Directors.

Which of the following best describes the role of corporate governance?

Holding the management team accountable to shareholders and other constituents for the utilization of the entity's resources.

The Public Company Accounting Oversight Board's role is to 

Oversee the auditors of public companies in order to protect the interests of investors.

Which of the following describes the PCAOB generally accepted auditing standard requiring a critical review of the work done and the judgment exercised by those assisting in an audit at every level of supervision? 

Which of the following best describes what is meant by generally accepted auditing standards?

Standards of quality for the auditor's performance.

Who bears ultimate responsibility for the financial statements? 

Management of the organization.

The AICPA's Statements on Auditing Standards can be described as 

Defining the minimum standards of performance for an auditor.

The auditor must be independent of the audit client unless 

A. The lack of independence does not influence his or her professional judgment. B. Both parties agree that the independence issue is not a problem. C. The lack of independence is insignificant. D. None of the above—the auditor cannot lack independence.

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IR Quiz 3 Final Answer Key

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IR Quiz 3 Final Answer Key (1)

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Which of the following best defines professional skepticism?

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