1) The concept of materiality is defined by the Financial Accounting Standards Board (FASB) in terms of the judgment of the A. Users. B. Auditor.

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1) The concept of materiality is defined by the Financial Accounting Standards Board (FASB) in terms of the judgment of the

A. Users.

B. Auditor.

C. FASB members.

D. Preparer.

2) Determining whether amounts are in conformity with generally accepted accounting principles addresses the proper measurement of assets, liabilities, revenues, and expenses, which includes all of the following EXCEPT the

A. Reasonableness of management’s accounting policies.

B. Reasonableness of management’s accounting estimates.

C. Consistency in applying accounting principles.

D. Proper application of valuation principles, such as cost, net reliable value, market value, and present value.

3) There are several paragraphs in the auditor’s standard report in internal control over financial reporting. Which paragraph defines internal control over financial reporting?

A. Definition

B. Introductory

C. Inherent limitations

D. Scope

4) Which of the following are independent private-sector standard-setting bodies?

A. FASB and the Governmental Accounting Standards Board

B. SEC and IRS

C. National Association of State Boards of Accountancy and the American Accounting Association

D. AICPA and IIA

5) The five management assertions outlined in generally accepted auditing standards include all of the following EXCEPT

A. Existence and occurrence.

B. Rights and obligations.

C. Presentation and disclosure.

D. Materiality.