10. Crazy Eddie Inc. created fictitious inventory be moving items between warehouses prior to the auditors assisting in physical inventory count. What effect did this have on the financial statements:

a) Only affect the balance sheet presentation.

b) Reduced the current Ratio significantly

c) Lowered the cost of goods sold and created higher gross profit

d) increased the cost of goods sold and reduced gross profit for tax purposes

11. A declaration about whether subject matter is presented in accordance with certain criteria is referred to as:

a) Assertion

b) Assumption

c) Attestation

d) Examination

12. Based on our review we are not aware of any material modifications that should be made to the accompany financial statements is a statement that is made on the report of:

a) A review

b) An audit

c) A comparison

d) A compilation, audit and review

13. External auditors are responsible to:

a) External users

b) Management

c) Board of directors

d) External users, management and Board of Directors

e) Management and board of directors only

14. Internal auditors are employed by companies to perform:

a) Internal audits

b) Operational audits

c) Certified audits

d)Internal and operational audits

e) Internal, operational and certified audits