,. 1. 2. True or False The quality of a company's internal controls has no effect on the work of an auditor. Acquiring the CPA designation requires a candidate to pass an exam, meet education requirements, and meet experience requirements. 3. 4. ~10. 11. 12. The Financial Accounting Standards Board is a governmental agency. 5. 6. 7. 8. 9. The SEC is the current accounting standard setting body in the United States. The inclusion of an explanatory paragraph in an audit report is an indication that the nancial statements should not be relied on. \"a The PCAOB oversees auditors of public companies. Nonpublic companies have no reason to have an audit of their nancial statements performed. If one manager approval is a good internal control then two approvals is always better. An individual who handles cash should not also be able to do the record keeping for cash. Audits are paid for by the creditors and investors of a company. CPAs can work for large, multinational rms, or for small, local rms. Auditors provide reasonable assurance that nancial statements are fairly presented in accordance with US. GAAP