24) In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of A) GAAP. B) GAAS. C) the Securities Exchange Act of 1934. D) the Sarbanes-Oxley Act.

25) Which of the following statements is the most correct regarding errors and fraud? A) Frauds occur more often than errors in financial statements. B) An error is unintentional, whereas fraud is intentional. C) Auditors have more responsibility for finding fraud than errors. D) Errors are always fraud and frauds are always errors.

26) An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and A) the assumption that upper-level management is dishonest. B) the assumption that all employees are motivated by greed. C) a critical assessment of the audit evidence. D) verification of all critical information by independent third parties.

27) The term audit objective refers to all of the following except for A) cycle-related audit objectives. B) balance-related audit objectives. C) transaction-related audit objectives. D) presentation and disclosure-related audit objectives.

28) If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the 28) A) cutoff assertion. B) completeness assertion. C) classification assertion. D) existence assertion.

29) Determining that the footnote disclosures related to long-term debt are accurate is an example of the ________ audit objective. 29) A) classification and understandability B) presentation and disclosure C) occurrence D) completeness

30) Auditors must make decisions regarding what evidence to gather and how much to accumulate. Which of the following is a decision that must be made by auditors related to evidence? A) Sample size Timing of audit procedures Yes Yes B) Sample size Timing of audit procedures No Yes C) Sample size Timing of audit procedures Yes No D) Sample size Timing of audit procedures No No