1. Unqualified audit report is addresed to:

a. Creditors

b. Directors

c. Owners

d. Employers

e. Managers

2. Opinion paragraph of the unqualified audit report expresses:

a. Financial statements fairly present all material aspects about the public corporations

b. Effectiveness of internal controls over the financial reporting was considered strong

c. Audit was performed in conformity with the standards of the ASB

d. Not all of the above

e. All of the above

3. Audit report is signed in the name of the:

a. Audit manager

b. Senior staff accountants in charge of audit

c. Partner in charge of audit

d. Public accounting firm conducting audit

e. None of the above

4. Which of the following is not associated with a qualified audit report?

a. Financial statements present fairly all material aspects of cash flows, operations, and financial positions of the public corporation inder audit

b. Financial statements are free of material misstatements

c. One area of the accounting system is considered as material according to the audit judgment

d. Auditor lost independence

e. Not all of the above

5. Which two types of audit reports are considered highly material with respect to all four financial statements:

a. Unqualified and disclaimer

b. Adverse and qualified

c. Disclaimer and qualified

d. Adverse and disclaimer

e. Cannot determine