25. Which of the following items is not part of the fundamental principle of reporting under GAAS? (a) Sufficient, relevant evidence has been obtained by the auditor as a (b) The financial statements have been prepared in accordance with (c) The financial statements contain adequate, informative disclosures. basis for expressing an opinion on the financial statements. GAAP (d) GAAP has been consistently applied from period to period in the financial statements. 26. If the auditor believes that certain required disclosures of a material nature are not included in the financial statements being audited, the auditor would normally issue a(n): (a) Disclaimer of opinion. (b) Unqualified opinion with an explanatory paragraph. (c) Qualified opinion with an explanatory paragraph. (d) Adverse opinion. 27. If the independent CPA is engaged to examine and report on management's written assertions about the effectiveness of a company's internal controls, the report should provide: (a) An opinion as to whether the company did maintain effective internal controls over financial reporting. Negative assurance if the auditor discovers no material weaknesses in internal control. No assurance since an audit was not performed. Limited assurance since an audit was not performed. (b) (c) (d) For an internal auditor to render impartial and unbiased judgments, he or she must be independent of the entity's: (a) Stockholders. (b) Personnel and operating activities. (c) Independent (external) auditors. (d) Board of directors. 28