solve each question(s) 1-10 by selecting only one answer:

1. If the accounting profession had listened to Dr. Abraham Briloff in the 1970s, 1980s, and 1990s; the result could have been: (is it a,b,c,d,or e)

a) Even more frauds as a result of unethical performance by auditors

b) Many of the frauds weve been discussing would have been even worse

c) Many of the frauds weve been discussing likely would not have occurred or at least would have been detected and reported much sooner

d) There would have been even more legislation to require auditors to perform audits more ethically

e) We would not need courses like this on ethics

2.An auditor has the responsibility to: (is it a,b,c,d,or e)

a. Prevent and detect fraud

b. Obtain reasonable assurance that financial statements are free of material misstatement, whether caused by error or by fraud

c. Obtain absolute assurance that financial statements are free of material misstatement, whether caused by error or by fraud

d. Obtain reasonable assurance that financial statements are free of error or fraud that is not material to the financial statements

e. None of the above

3.management of a company has the responsibility to: (is it a,b,c,d,or e)

a. Prevent and detect fraud

b. Obtain reasonable assurance that financial statements are free of material misstatement, whether caused by error or by fraud

c. Obtain absolute assurance that financial statements are free of material misstatement, whether caused by error or by fraud

d. Obtain reasonable assurance that financial statements are free of error or fraud that is not material to the financial statements

e. None of the above

4. The Fraud Triangle describes and addresses: (is it a,b,c,d,or e)

a. Occurrence of fraud, Detection of fraud, and Punishment for fraud

b. Pressure to commit fraud, Opportunity to commit fraud, and Rationalization that the fraud is acceptable behavior

c. Pressure to commit fraud, Occurrence of fraud, Punishment for fraud

d. Lack of internal controls, lack of ethics, lack of morals

e. Lack of a strong tone at the top, lack of an ethical corporate culture, lack of whistleblower programs

5.The Fraud Triangle describes three characteristics of: (is it a,b,c,d,or e)

a. Occupational fraud

b. Financial statement fraud

c. Both of the above

d. None of the above

6. In June 2017 the PCAOB announced proposed major changes to auditors reports on the audited financial statements for publicly held companies. This is the first major change in a reporting standards: (is it a,b,c,d,or e)

a.. Since Arthur Andersen went out of business for unethical reports on audited financial statements

b.. Since the formation of the PCAOB

c.Since the Dodd-Frank act was enacted in 2010

d. In the past 30 years

e. In the past 70 years

7.The AICPA Auditing Standards Board (ASB) sets auditing standards for audits of: (is it a,b,c,d,or e)

a. All companies in the United States that are required to have an audit

b. All privately held companies in the United States

c. All publicly held companies in the United States

d. Both publicly and privately held companies in the United States but not for nonprofit companies in the United States

e. None of the above

8. The PCAOB was: (is it a,b,c,d,or e)

a.Created by the AICPA to set auditing standards for publicly held companies in the United States

b.Created by the AICPA to set auditing standards for privately held companies in the United States

c.Created by SOX and established by the SEC to set auditing standards for publicly held companies in the United States

d.Created by SOX and established by the SEC to set auditing standards for privately held companies in the United States

e. None of the above

9. When might an auditor be justified in withdrawing from an audit engagement? (is it a,b,c,d,or e)

a.When there is a material misstatement in any one part of the financial statements even though the financial statements, except for that part, are presented fairly in accordance with GAAP

b.When there is a significant misstatement resulting in the financial statements not being presented fairly in accordance with GAAP

c.When there is an inability for the auditor to obtain sufficient appropriate evidence to render an opinion

d.When a significant conflict exists between the auditor and client management or the auditor decides client management cannot be trusted

e.Never, an auditor should never withdraw from an audit engagement because an auditor is hired by the client to do an audit and render an opinion, not walk away from ones obligation

10. The COSO Internal Control Integrated Framework (is it a,b,c,d,or e)

a.Is a widely used tool to assess internal controls

b.Is recognized by the PCAOB as an appropriate internal control framework

c.Provides a suitable and available framework for assessing a companys internal controls and financial reporting

d.Had a major update in 2013

e. All of the above