1, Jones & Company CPAs have only one office. Which of the following situations is least likely to affect the independence of your auditors from a client?

Select one:

a. One of the partners of the firm maintains an investment in a mutual fund which, in turn, maintains an indirect investment in the client under audit.

b. The wife of a partner of the firm has an insubstantial direct investment in said client.

c. One of the partners of the firm is the son of the one who serves as president of that client.

d. The client owes audit fees to the firm for the past two years.

2, Which of the following procedures is not part of those that are performed under a review of the financial statements of a private corporation?

Select one:

a. Understanding of the accounting principles applicable to the industry to which the client belongs.

b. Interview with management to discuss possible subsequent events.

c. Confirmation of accounts receivable

d. Analytical review of client financial data

3, The group of general standards belonging to the 10 PCAOB Auditing Standards requires that: \

Select one:

a. Attendees, if any, must be supervised.

b. The auditor maintains an independent mental attitude.

c. The audit is conducted in accordance with GAAS.

d. Auditors must evaluate their client's internal control system.