TOP AUDITING ISSUES FOR 2013 - CCH

QUIZZER QUESTIONS — Module 1
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14. Which of the following is a requirement related to reporting under
GAGAS?
a. Auditors should cite compliance with GAAS in a GAGAS report.
b. When auditors report separately on internal control over financial
reporting and on compliance, they should state that the additional
reports are an integral part of a GAGAS audit.
c. Public accounting firms engaged to perform GAGAS audits should
not assume report distribution responsibilities.
d. Auditors should obtain the views of responsible officials of the
audited entity concerning findings, conclusions, recommendations
and corrective actions in writing.
15. Auditors should report instances of known or likely fraud,
noncompliance or abuse directly to outside parties under which of the
following circumstances?
a. After the auditors have been dismissed or have resigned, unless
otherwise prohibited by law or regulation.
b. When the audited entity’s management fails to make communications
to external parties that are required by law or regulation, and prior
to the auditor communicating the failure to those charged with
governance.
c. When the audited entity’s management fails to take timely and
appropriate action to respond to known noncompliance, and the
auditors have first communicated the failure to those charged with
governance.
d. After they have received confirmation from external parties that
the audited entity’s management has properly reported the fraud,
noncompliance or abuse.
16. Which of the following statements best applies to the term validity, as
it relates to evidence in a performance audit?
a. It is comparable to the term “materiality” as it applies to financial
audits.
b. It is the extent to which the evidence provides a reasonable or
meaningful basis for measuring what is being evaluated.
c. It is the relative importance of the evidence within the context in
which it is being considered.
d. It is the extent to which evidence has importance to the issue being
addressed.