TOP AUDITING ISSUES FOR 2013 - CCH

QUIZZER QUESTIONS — Module 4
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82. All of the following statements apply to the new Codification except:
a. The new Codification contains a preface that sets forth broad
philosophical principles underlying an audit conducted in
accordance with GAAS.
b. AU-C Section 200, Overall Objectives of the Independent Auditor
and the Conduct of an Audit in Accordance With Generally Accepted
Auditing Standards, contains conceptual principles that shape the
overall objectives of an audit and broad, overarching requirements
that govern the conduct of an audit.
c. The new Codification moves U.S. GAAS toward a more specifically
rules-based system.
d. The new Codification contains a master glossary that gives
definitions of terms used throughout GAAS.
83. All of the following statements apply to the clarified standards except:
a. The clarified standards adopt a uniform format for each standard
that is similar to that of the International Auditing Standards.
b. The clarified standards adopt substantially all of the substantive
requirements of International Auditing Standards for each applicable
standard.
c. Each clarified standard contains a separate section that lists all of
its requirements.
d. Auditors should read and understand the entire text of the
Application and Other Explanatory Material section of each clarified
standard, and should be prepared to justify departures from it in
their work.
84. Each of the following represents a significant change from previous
audit practice that is effective with the new Codification except:
a. The clarified standards no longer require written confirmations.
b. The clarified standard for compliance with laws and regulations
requires auditors to perform procedures to identify instances of
noncompliance with laws and regulations that may materially affect
the financial statements, including inspection of correspondence
with regulators.
c. Special purpose frameworks are limited to cash, tax, regulatory, or
contractual bases of accounting.
d. Direct written communication with the client’s legal counsel
is required only when the auditor assesses a risk of material
misstatement concerning litigation or claims, or when audit
procedures indicate that material litigation or claims may exist.