1) An audit of historical financial statements most commonly includes the: A) balance sheet, statement of retained earnings, and the statement of cash flows. B) income statement, the statement of cash flows, and the statement of net working capital. C) statement of cash flows, balance sheet, and the statement of retained earnings D) balance sheet, income statement, and the statement of cash flows 2) Auditing standards require that the audit report must be titled and that the title must: A) include the word "independent." B) indicate if the auditor is a CPA. C) indicate if the auditor is a proprietorship, partnership, or incorporated. D) indicate the type of audit opinion issued. 3) The scope paragraph of the standard unqualified audit report states that the audit is designed to: A) discover all errors and/or irregularities. B) discover material errors and/or irregularities. C) conform to generally accepted accounting principles D) obtain reasonable assurance whether the statements are free of material misstatement. 4) The audit report date on a standard unqualified report indicates: A) the last day of the fiscal period. B) the date on which the financial statements were filed with the Securities and Exchange Commission C) the last date on which users may institute a lawsuit against either client or auditor. D) the last day of the auditor's responsibility for the review of significant events that occurred subsequent to the date of the financial statements 5) Which of the following is not explicitly stated in the standard unqualified audit report? A) The financial statements are the responsibility of management. B) The audit was conducted in accordance with generally accepted accounting principles C) The auditors believe that the audit provides a reasonable basis for their opinion. D) An audit includes assessing the accounting estimates used. 6) The introductory paragraph of the standard audit report states that the financial statements are: A) the responsibility of the auditor, B) the responsibility of management C) the joint responsibility of management and the auditor. D) none of the above 7) The introductory paragraph of the standard audit report performs which functions? 1. State the CPA has performed an audit. II. Lists the financials being audited. III. States the financials are the responsibility of the auditor. A) I and 11 B) I and III c) II and III D) I, II and