A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:
As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:
A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:
The standard unqualified audit report for a non-public entity must:
An adverse opinion is issued when the auditor believes:
The standard unqualified audit report:
After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:
The auditor's responsibility section of the standard unqualified audit report states that the audit is designed to:
Auditing standards for public companies are established by the:
The auditor's responsibility section of the standard audit report states that the auditor is:
The explanatory paragraph for a qualified opinion would:
The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:
If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:
When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:
The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:
Interpretations of the rules regarding independence allow an auditor to serve as:
Which of the following is required for a firm to designate itself "Member of the American Institute of Certified Public Accountants" on its letterhead?
The underlying reason for a code of professional conduct for any profession is:
The AICPA's Code of Professional Conduct requires independence for all:
Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client's consent as a result of a:
Which of the following represents all of the ways a CPA firm can be organized under Rule 505?
Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.
The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:
A CPA firm may charge a contingent fee for:
The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a "direct financial interest" of the CPA?
When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:
When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:
"Independence" in auditing means:
The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?