5. Allen LLP is a big regional CPA firm based in California and the long-time auditor of Winston Inc., a high-tech firm listed on NASDAQ. Winston Inc. closes its fiscal year on Dec 31. According to the minimum-period requirement under laws and industry regulations, Allens working papers for the 2012 Winston Inc. audit must be kept on file until when?

A) 2018.

B) 2020.

C) 2015.

D) 2017.

2. Which of the following statement is not correct?

A) In an audit report, auditor comment on whether that financial statements comply with generally accepted accounting principles. Auditor can no longer promise that financial statements are accurate or free from misstatements.

B) Public and private companies in the U.S. follow accounting principles from two different regulators, PCAOB and AICPA.

C) The SEC was created with a mandate to protect investors in the U.S. capital market. If a UK pension fund invests through the U.S. equity market, it is also protected by the SEC.

D) Management is responsible for the establishment and implementation of internal controls at a public company listed on the NYSE.

1.Internal control questionnaires are often used to document internal control. Which one of followings is not an advantage of using questionnaire?

A) Easy to implement

B) Junior auditors do not need additional training before using questionnaires.

C) Junior auditors will get a better understanding of clients internal control system

D) Yes or No answers help auditors to identify control weaknesses fast.