1. The primary purpose of the internal auditors' evaluation of internal control is to:

Determine if management has planned and implemented activities needed to attain goals and objectives.

Determine the extent of tests of controls needed during field work.

Identify areas for fraud investigation.

Determine if employees have incompatible duties that have compromised the control environment.

2. Which of the following is not an example of financial statements that use a special purpose financial reporting framework?

Of a partnership which follows accounting practices used to file its tax return.

Prepared for limited purposes such as relating to contract a company has entered into.

Of an organization that has limited the scope of the auditor's examination.

Of an organization that follows procedures of a regulatory agency that oversees the company and its operations.