1. "Pervasive" financial misstatements are those that are confined to specific elements of the financial statements and do not represent a significant or substantial proportion of them.

a. True

b. False

2. The strength or weakness of internal controls is a critical concern for auditors because they can have an effect on the reliability of financial information.

a. true

b. false

3. For public companies, if a significant financial event occurs after the end of the audit client's accounting year but before the audit report is issued, there is no reason for the client company to mention the event in the financial statement disclosures for the accounting year being audited because the event occurred after the end of the accounting year under audit.

a. true

b. false

4."In our opinion, except for the effects of the issue in the paragraph above, the financial statements present fairly, in all material respects, the financial position of our client company and the results of operations and its cash flows for the year then ended"

This paragraph indicates an example of:

a.	An adverse opinion report with an Emphasis-of-Matter paragraph

b.	A qualified opinion report with a basis for qualification paragraph

c.	An unqualified opinion report with an Emphasis-of-Matter paragraph

d.	An unqualified opinion report with a basis for qualification paragraph