1.All CPA firms are required to undergo a peer review at least once every two years.

a.True

b.False

2.The criteria by which an auditor evaluates the information under audit may vary, depending on the information being audited.

a.True

b.False

3.All audit evidence must be in written form; oral statements by the client are not considered sufficiently reliable to be evidence.

a.True

b.False

4.The criteria used by an external auditor to evaluate published financial statements are generally accepted accounting principles.

a.True

b.False

5.The financial statements most commonly audited by external auditors are the statements of financial position, income statement, and statement of cash flows.

a.True

b.False

6.The primary purpose of an operational audit is to evaluate the efficiency and effectiveness of an organization's operating procedures and methods.

a.True

b.False

7.The primary purpose of a compliance audit is to determine whether the overall financial statements are stated in accordance with generally accepted accounting principles.

a.True

b.False

8.Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.

a.True

b.False

9.The primary role of the United States General Accounting Office is the enforcement of the federal tax laws as defined by Congress and interpreted by the courts.

a.True

b.False

10.Information risk decreases as business organizations become larger.

a.Truer

b.False

11.All companies filing annually with the Securities and Exchange Commission ate required to have an annual external audit.

a.True

b.False

12.CPA firms are never allowed to provide bookkeeping services for audit clients.

a.True

b.False

13.Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors.

a.True

b.False

14.Membership in the AICPA is mandatory for all licensed practicing CPAs.

a.True

b.False

15.Statements on Auditing Standards (SASs) are issued by the Auditing Standards Board of the AICPA.

a.True

b.False

16.In a limited liability partnership (LLP), partners are personally liable for liabilities arising from negligent acts of other partners, but not for liabilities arising from negligent acts of non-partner employees.

a.True

b.False

17.The first standard of field work states that due professional care is to be exercised in the performance of the audit and the preparation of the report.

a.True

b.False

18.The standards of reporting require that the reports states whether the financial statements are presented in accordance with generally accepted auditing standards

a.True

b.False

19.Statements on Auditing Standards (SASs) are considered to be interpretations of the 10 generally accepted auditing standards.

a.True

b.False

20.Quality controls ate procedures used by a CPA firm to help ensure that generally accepted auditing standards are followed consistently on every audit engagement.

a.True

b.False

21.