ACCT 591 DeVry Complete Quiz Package

Question 10.10. (TCOs B and C) (CPA-02585.B) An auditor established a $60,000 tolerable misstatement for
an asset with an account balance of $1,000,000. The auditor selected a sample of every twentieth item from the
population that represented the asset account balance and discovered overstatements of $3,700 and understatements
of $200. Under these circumstances, the auditor most likely would conclude that: (Points : 10)
o
o
o
o
There is an unacceptably high risk that the actual misstatements in the population exceed the tolerable
misstatement because the total projected misstatement is more than the tolerable misstatement.
There is an unacceptably high risk that the tolerable misstatement exceeds the sum of actual overstatements
and understatements.
The asset account is fairly stated because the total projected misstatement is less than the tolerable
misstatement.
The asset account is fairly stated because the tolerable misstatement exceeds the net of projected actual
overstatements and understatements.
ACCT 591 DeVry Week 6 Quiz Latest
Question 1.1. (TCO D) (CPA-06736.B) In which of the following situations is there a violation of client confidentiality
under the AICPA Code of Professional Conduct? (Points : 10)
o
o
o
o
A member discloses confidential client information to a court in connection with arbitration proceedings relating
to the client.
A member discloses confidential client information to a professional liability insurance carrier after learning of
a potential claim against the member.
A member whose practice is primarily bankruptcy discloses a client's name.
A member uses a records retention agency to store clients' records that contain confidential client information.
Question 2.2. (CPA-02429) The primary purpose of establishing quality control policies and procedures for deciding
whether to accept a new client is to: (Points : 10)
o
o
o
o
Enable the CPA firm to attest to the reliability of the client.
Satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
Minimize the likelihood of association with clients whose management lacks integrity.
Anticipate before performing any fieldwork whether an unmodified opinion can be expressed.
Question 3.3. (TCO D) (CPA-01502.B) According to the profession's ethical standards, which of the following
events may justify a departure from GAAP?
Evolution of
a new form
New of business
legislation transaction (Points : 10)
o
o
o
o
No Yes
Yes No
Yes Yes
No No
Question 4.4. (TCO D) (CPA-06038.B) Detection risk of noncompliance is inversely related to: (Points : 10)
o
o
o
o
Audit risk of noncompliance.
Risk of material noncompliance.
Inherent risk of noncompliance.
Control risk of noncompliance.