1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be described as a- A branch of accounting b. A discipline which attest to the results of accounting and other functional operations and data - A professional activity that measures and communicates financial and business data d- A regulatory function that prevents the issuance of improper financial information 4. Which of the following is not an attest engagement? a- Tax return preparation b- Examination - Review d- Audit 5. Which of the following auditors would most likely perform a financial statement audit? a- Internal auditor b- Government auditor C- Independent auditor e- Compliance auditor 6. If a CPA is found to be grossly negligent in the conduct of an audit, what is the greatest sanction that can be imposed by the AICPA on the CPA? a- Revoke the CPA's license to practice b- Revoke the CPA's membership in the AICPA c. Require minimum continuing education courses d- Invoke monetary penalties 7. Conducting a study of which computer system best fit a client's needs is an example of which type of engagement a- Agreed upon procedures b- An operational audit c. A management consulting service d- A feasibility audit 8. How are auditing procedures related to auditing standards? a- Auditing standards are applicable to every audit, while auditing procedures may change between different audits b. Auditing procedure are applicable to every audit, while auditing standards may change between different audits. C- Auditing standards are simply the methods used to implement auditing procedures d- None of these, the two are unrelated. 9. Which of the following is responsible for the fairness of the representations made in financial statements? a- Clients management b- Independent auditor C- Audit committee d- AICPA 10. In determining the type of opinion to express, an auditor assesses the nature of the reporting qualifications and the materiality of their effects. Materiality will be the primary factor considered in the choice between: a- An unqualified opinion and an adverse opinion b- A qualified opinion and an adverse opinion C. A disclaimer of opinion and an adverse opinion d- An unqualified opinion and a disclaimer opinion 11. When there are limitations on the scope of the audit that preclude the issuance of a standard report, the auditor will issue: a- An unqualified opinion with explanatory language b- An adverse opinion or a disclaimer of opinion C. A qualified opinion or a disclaimer opinion d- A qualified opinion or an adverse opinion 12- When expressing a qualified opinion the auditor should include a separate explanatory paragraph describing the effects of the qualification. In addition in the opinion paragraph the auditor should: a- Make no reference to the explanatory paragraph b- State that the financial statements do not fairly present C- Express a disclaimer of opinion d- Make reference to the explanatory paragraph 13- The AICPA classifies its generally accepted accounting standards as: a. General, field work, and reporting b- General, examination and evaluation C- General, field work, and reporting 14- The primary focus of an operational audit is a. Compliance with established regulation - Efficiency in meeting an organization's operating objectives C- Fairness of the operating results in conformity with accounting standards d- None of these