10. Which organization sets standards for and regulates firms who audit public companies? 11. Which act established the Public Company Accounting Oversight Board? 12. Which organization sets standards for and regulates firms who do not audit public companies? 13. What type of assurance does an audit provide? 14. Why do audits not provide absolute assurance that financial statements are presented fairly according to GAAP? 15. What are internal controls? 16. How is an auditor's work affected by a company's internal controls? 17. What principles guide the implementation of an internal control system? 18. What are examples of internal control procedures? 19. To whom is the audit report addressed? 20. What is an unqualified opinion? 21. Why would an auditor include an explanatory paragraph in an audit report? 22. Why would an auditor not give an unqualified opinion