106.If there are both emphasis-of-matter and other-matter paragraphs in an auditor's report, in what order should the various paragraphs be presented:

A.There is no ordering of the emphasis-of-matter and other-matter paragraphs

B.FIRST: Emphasis-of-matter paragraph, SECOND: Other-matter paragraph, and THIRD: Opinion paragraph

C.FIRST: Emphasis of matter paragraph, SECOND: Opinion paragraph, and THIRD: Other- matter paragraph

D.FIRST: Opinion paragraph, SECOND: Other-matter paragraph, and THIRD: Emphasis-of-matter paragraph

107.__________ is defined as 'significant transactions that are outside the normal course of business for the entity or that otherwise appear to be unusual due to their timing, size, or nature.'

A.Material events

B.Extraordinary transactions

C.Major ensuing events

D.Significant unusual transactions

108.Which of the following is not an example of a fraud risk factor expanded by SAS No. 135:

A.Related party transactions that might be considered exotic transactions

B.Significant transactions with related parties whose financial statements are not audited or are audited by another firm

C.Contractual arrangements lacking a business purpose

D.The exertion of dominant influence by or over a related party

109.Which of the following actions does AU-C 703, SAS No. 136 make to the limited-scope audit in audits of ERISA plans:

A.The limited-scope audit is expanded

B.The limited-scope audit is now required, no longer optional

C.The limited-scope audit is eliminated and replaced

D.There is no change to the limited-scope audit

110.In performing an audit risk assessment and response in an ERISA audit, AU-C 703 requires the auditor to read which of the following:

A.The most current plan instrument

B.The prior year's financial statements

C.The latest Department of Labor directive on plans

D.All plan communications with plan participants

111.Sheila is auditing the ERISA plan for Company X. X is preparing a management representation letter to give to Sheila. Which of the following is an additional representation that Sheila should request be included in management's representation letter:

A.Management has provided the most current plan instrument

B.Acknowledgement that the custodian of plan assets is responsibility for administering the plan

C.The ERISA plan financial statements are in conformity with the tax return

D.Management has supplied Sheila the final Form 5500 for the current year

112.One change made by AU-C 703 is that an auditor should:

A.Obtain a final version of Form 5500 prior to dating the auditor's report

B.Obtain a draft version of Form 5500 prior to issuing the auditor's report

C.Obtain a final version of Form 5500 prior to issuing the auditor's report

D.Obtain a draft version of Form 5500 prior to dating the auditor's report

113.SAS No. 136 replaces the term 'limited scope audit' with the term __________.

A.'Restricted scope audit'

B.'ERISA section 103(a)(3)(C) audit'

C.'Partial report audit'

D.'Modified report audit'

114.The scope of SAS No. 137 applies to other information that is included in an entity's __________.

A.Notes to financial statements

B.Financial statements

C.Tax returns

D.Annual report

115.Lucy CPA is auditing the financial statements of Company J. Lucy concludes that there is a material misstatement of other information. Lucy approaches management and they refuse to make the correction telling Lucy to 'go pound sand.' What should Lucy do in accordance with SAS No. 137:

A.Withdraw

B.Communicate with those charged with governance and request that the correction be made

C.Issue a modified opinion

D.Seek legal advice

116.When an auditor has obtained other information, he or she should report on the information as follows:

A.Include an emphasis-of-matter paragraph in the auditor's report

B.Include an 'other information' section in the auditor's report

C.Income an other-matter paragraph in the auditor's report

D.Disclose the other information only in the notes to financial statements

117.Which of the following is referenced in the new definition of materiality in SAS No. 138:

A.Experienced practitioner

B.Reasonable user

C.Sophisticated businessperson

D.Qualified investor

118.A change made by SAS No. 138 is to clarify that judgments about materiality involve which of the following:

A.Qualitative considerations only

B.Quantitative considerations only

C.Neither qualitative nor quantitative considerations

D.Both qualitative and quantitative considerations

119.Susie CPA is issuing an auditor's report on the regulatory basis and included language to describe the purpose for which the financial statements were prepared. Her auditor's report should also include which of the following:

A.A statement that the financial statements may not be suitable for another purpose

B.A statement that a user must have a general understanding of the regulatory basis of accounting

C.A going-concern paragraph

D.Define what restricted use is

120.Which one of the following is an example given by SAS No. 139 of certain matters in the auditor's report on the entity's complete set of financial statements for which the auditor should consider the implications they have on the audit of the single financial statement or for a specific element of a financial statement:

A.An unqualified opinion

B.An emphasis-of-matter or other-matter paragraph

C.A disclosure of subsequent events

D.A report on supplementary information