1, Which of the following expressions best describes the primary purpose of the Statements on Auditing Standards? Why are

Select one:

a. guides that establish audit procedures that apply to various situations.

b. imposed by the Code of Professional Conduct.

c. procedures that reduce inconsistencies when issuing an opinion.

d. They are interpretive in nature and therefore serve as a guide for auditors.

2, A CPA issued a standard opinion (unmodified opinion) on the financial statements of a public corporation that issued shares for the first time in accordance with the provisions of the SEC Act of 1933. On the grounds that the financial statements were wrong, an investor who bought shares from that first issue sued the CPA. Which of the following actions represents a possible defense for the CPA in this case?

Select one:

to. The investor did not trust the financial statements.

b. The investor has not proven ordinary negligence on the part of the CPA.

c. The CPA detected the error in the financial statements after having issued the audit report.

d. The error is insubstantial (immaterial) when it is examined within the set of financial statements.

3, The attest functions

Select one:

a. includes the preparation of a report of findings by the CPA.

b. It requires that all transactions carried out by a client during the period under intervention be reviewed.

c. requires a consideration of the internal control system.

d. It is an essential part of any work commitment (engagement).