ACC 562 ACC/562 ACC562 Midterm Exam CPAs are licensed by the The Certified Internal Auditor program is administered by the The objective of an operational audit is to As it relates to an audit, materiality is Independent professional services that are provided on financial or other information that improve the quality of decision making are known as An expectation of the public is that the auditor will recognize that the primary users of audit assurance are The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the An audit which has as its purpose the evaluation of the economy and efficiency with which resources are employed is known as a(n) Management of a company is responsible for The audit agency for the U. S. Congress is the An audit committee must be comprised of outside directors and at least one outside financial expert. Which of the following is considered an outside director? A proper system of corporate governance is one that demands Section 304 of the Sarbanes-Oxley Act requires executives to forfeit any bonus or incentive-based pay or profits (including stock options) from the sale of stock received in the twelve months prior to an earnings restatement. This is often referred to as: Which one of the following will provide auditing standards of public companies? The responsibility for operating an enterprise is delegated to the: The Sarbanes-Oxley Act of 2002 requires which of the following? The audit client of the CPA firm is: The Public Company Accounting Oversight Board was established by: Audit committees are required to have what person in its composition? Corporate governance is a process by which the owners and creditors of an organization In determining the types of activities, engagements and interactions an auditor should have with a client, the CPA and the audit firm must do which of the following? Independence is not required for which of the following types of services? The AICPA Principles of Professional Conduct include which of the following? An auditor that has an attitude that includes a questioning mind and a critical assessment of audit evidence is considered which of the following? A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? Information about a client that cannot be subpoenaed by a court of law is referred to as what type of information? Members of the AICPA are required to act with integrity and objectivity for which of the following engagements? Which one of the following is an example of a conflict of interest for a CPA? A CPA may only practice public accounting in which of the following forms? Which of the following describes a situation in which moral duties or obligations conflict and one action is not necessarily the correct action?