8/31/23, 12:38 PMAuditing assurance services 5th edition louwers test bank
about:blank1/151
Chapter 02 Professional Standards
True / FTrue / FTrue / FTrue / FTrue / False Questionsalse Questionsalse Questionsalse Questionsalse Questions
- Auditors may be independent in fact but not independent in appearance.
True False
- Auditing Standards issued by the PCAOB are the sole source of guidance for audits
of public entities.
True False
- Attestation standards provide guidance for a wide variety of engagements
different in scope than an audit.
True False
- Generally accepted auditing standards must be followed on all audit
engagements.
True False
- / 4
8/31/23, 12:38 PMAuditing assurance services 5th edition louwers test bank
about:blank2/151
- The reporting principle relates to a firm's system of quality control criteria for
conducting an audit.
True False
- Auditors cannot effectively satisfy the responsibilities principle requiring due care if
they have not also satisfied the performance principle.
True False
- Substantive procedures performed by the audit team are most closely related to
the risk of material misstatement.
True False
- Auditing procedures are the same as auditing standards.
True False
- The concept of due care reflects the need to plan and perform the audit with an
appropriate level of professional skepticism.
True False
- / 4
8/31/23, 12:38 PMAuditing assurance services 5th edition louwers test bank
about:blank3/151
- Under the performance principle, auditors are required to provide absolute
assurance that the client's financial statements do not contain material misstatements.
True False
- The performance principle sets forth the quality criteria for conducting an audit.
True False
- Auditors of public entities registered with the Securities and Exchange Commission
are required to register with the Public Company Accounting Oversight Board.
True False
- Control risk is the probability that a material misstatement (error or fraud) could
occur and not be prevented or detected on a timely basis by the auditors' substantive procedures.
True False
- The word appropriateness refers to the number of transactions or components of
an account balance examined by auditors.
True False
- / 4
8/31/23, 12:38 PMAuditing assurance services 5th edition louwers test bank
about:blank4/151
- To be considered material, an item must be one that would influence the decision
of financial statement users.
True False
- The contents of the auditors' report are guided by the performance principle of
GAAS.
True False
- An unqualified opinion indicates that the financial statements present the entity's
financial condition, results of operations, and cash flows in conformity with GAAP.
True False
- The auditors' report should either contain an expression of opinion on the financial
statements taken as a whole or an assertion to the effect that an opinion cannot be expressed.
True False
- Evidence is considered appropriate when it is both valid and relevant.
True False
- / 4