1 The scope paragraph in the standard audit report uses all of the following terms except:

a.significant estimates.

b.conclusive basis.

c.generally accepted auditing standards.

d.examining evidence.

e.materiality.

2 Which one of the following types of services offered by a CPA is not an attest service?

a.review

b.performing agreed-upon procedures

c.audit

d.examination

e.accounting

3In the opinion paragraph of the standard audit report, the phrase in our opinion, really means:

a.we certify...

b.we are certain...

c.we guarantee...

d.we are reasonably satisfied...

e.we promise...

4 Which one of the following terms relates to the embezzling of receipts?

a.manipulation

b.misrepresentation

c.misappropriation

d.misapplication

e.misleading

5 Which one of the following is the service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party?

a.accounting service

b.compilation service

c.attest service

d.examination service

e.consulting service

6 Because of the effects of circulation, some audit evidence is more reliable than other audit evidence. Which of the following is generally considered to be the most reliable?

a.Suppliers' invoices.

b.Paid checks.

c.Receipted bank deposit slips.

d.Purchase requisitions.

e.Cutoff bank statements.

7 If an extremely material scope limitation exists, the auditor should express:

a.an adverse opinion.

b.either a qualified opinion or an adverse opinion.

c.a disclaimer of opinion.

d.a qualified opinion.

e.either a disclaimer of opinion or a qualified opinion.

8 The statement that the reviewer is not aware of any material modifications that should be made to the statements in order for them to be in conformity with GAAP is known as:

a.necessary ignorance.

b.negative assurance.

c.negligent performance.

d.reasonable assurance.

e.positive assurance.

9 Which one of the following terms is not part of the definition of auditing?

a.communicating the results

b.evaluating evidence

c.auditing standards

d.systematic process

e.interested users

10 Materiality at the account balance level is stated in planning an audit because:

a.official pronouncements have specified different levels of materiality for various financial statement items.

b.the auditor verifies account balances in reaching an overall conclusion on the fairness of the financial statements.

c.the opinion on the fairness of the financial statements extends to the individual transactions.

d.the opinion on the fairness of the financial statements extends to the individual account balances.

e.some users make decisions based upon individual account balances.

11 The AICPA's Code of Professional Conduct prohibits contingent fees from:

a.accounting clients.

b.attest clients and some accounting clients.

c.any client.

d.audit clients.

e.attest clients.

12 Which one of the following consists primarily of inquiries of an entity's management and comparative analyses of financial information?

a.review

b.agreed-upon procedures

c.compilation

d.audit

e.examination