1. Which of the following is most likely to be considered a material weakness in internal control?

An ineffective control environment.

Restatement of previously issued financial statements due to a change in accounting principles.

A bank reconcilement is accomplished monthly rather than weekly.

Lack of a formal organization chart.

2.which of the following is not a requirement of Section 404 of the Sarbanes Oxley act:

Management needs to provide a report on internal control.

The CPA firm needs to audit internal control and then report on the assessment made by management.

The CPA firm needs to audit internal control and express an opinion on it.

The CPA firm needs to audit and express an opinion on compliance with applicable laws and regulations.

3.

Which of the following is defined as a control deficiency that allows for a reasonable possibility of a material misstatement?

Material weakness.

Reportable condition.

Significant deficiency.

Control deficiency.

4.

Which of the following is not a situation where the auditor would issue the standard unqualified audit report with explanatory language?

		There is a change in accounting principle with which the auditor concurs.
		There is a departure from GAAP, but the auditor feels that the financial statements would be misleading had the client followed GAAP.
		The auditor wishes to emphasize a matter.
		A material disclosure is omitted.