Ch01revgd 悉大审计 期中考试复习.doc

Testbank to accompany Modern Auditing and Assurance Services 3e By Philomena Leung, Paul Coram, Barry J. Cooper, Graham Cosserat and Gurdarshan Gill Prepared by Laura de Zwaan Griffith University  John Wiley Sons Australia, Ltd 2007 CHAPTER 1 Auditing, assurance and the public accounting profession Questions True/False The traditional role of auditing was largely of a compliance nature and included the detection of fraud and errors. An audit is a subjective（objective） and critical examination of a subject matter with the aim of assessing its accuracy (credibility). The International Framework for Assurance Engagements specifically covers audit-level and review-level engagements and excludes agreed-upon procedures, compilations and other related services. All (audit-level) assurance engagement reports express a positive opinion about an accountability matter. The convergence role of auditing has refocused on the public interest and ensuring the integrity of financial reports. The public accounting profession in Australia is represented by CPA Australia. The ICAA and the NIA. The AUASB is responsible for setting the auditing standards within Australia. Recent corporate failures have caused a credibility crisis for auditors, resulting in wide-ranging reform proposals. Internal (Independent) auditors are those auditors who provide assurance services for the public, and are independent of the auditee (client). Government auditors are employees of the government who are employed to carry out different types of public sector assurance services. Independent (Internal)auditors are employees of organisations appointed to carry out certain types of assurance functions within the organisation. A performance audit involves obtaining and evaluating evidence about the efficiency, economy and effectiveness of an entitys operating activities. Internal audit is a management tool used by an organisation to enhance internal control. Quality controls at the firm level should provid