Solved by verified expert :51.
The probability that
the information circulated by a company will be false or misleading is referred
to as
A.
Business
risk.
B.
Information
risk.
C.
Assurance
risk.
D.
Audit risk.
52.
The Sarbanes-Oxley
Act of 2002 requires that the key company officials certify the financial statements. Certification means that the company CEO and CFO must sign a
statement indicating
A.
They have
read the financial statements.
B.
They are not
aware of any false or misleading statements (or any key omitted
disclosures)
C.
They believe
that the financial statements present an accurate picture of the company’s
financial condition.
D.
All of the
above.
53.
The process by which
a CPA obtains a certificate and license in a state other than the state in
which the CPA’s certificate was originally obtained is referred to as
A.
Substantial
equivalency.
B.
Quid pro quo.
C.
Relicensing.
D.
Re-examination
54.
The risk that an
entity will fail to meet its objectives is referred to as
A.
Business
risk.
B.
Information
risk.
C.
Assurance risk.
D.
Audit risk.
55.
The four basic
requirements for becoming a CPA in most states relate to
A.
Education,
the CPA Examination, experience, and substantial equivalency.
B.
The CPA
Examination, experience, continuing professional education, and a state
certificate.
C.
Continuing
professional education, the CPA Examination, experience, and an AICPA
certificate.
D.
Education,
the CPA Examination, experience, and a state certificate.
56.
The study of
business operations for the purpose of making recommendations about the
efficient use of resources, effective achievement of business objectives, and
compliance with company policies is referred to as
A.
Environmental
auditing.
B.
Financial
auditing.
C.
Compliance auditing.
D.
Operational
auditing.
