5. Orange, Inc. is a corporation listed on the New York Stock Exchange (NYSE). Which of the following organizations, established by Congress, directly oversee(s) audits of Orange, Inc.'s financial reports? (A) The Securities and Exchange Commission (SEC) (B) The Public Company Accounting Oversight Board (PCAOB) (C) The American Institute of Certified Public Accountants (AICPA) (D) Choices (A) and (C). (E) None of the above, if Orange, Inc. chooses not to have its financial statements audited. Question 6. Which of the following is NOT an objective of the audit? (A) to enable the auditor to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. (B) to enable the auditor to express an opinion on whether the financial statements are presented fairly. (C) to permit the auditor to communicate and report the audit findings through the issuance of an audit report to the entity. (D) to provide the auditor's professional opinion of the operations and the financial condition of the entity being audited to the Securities and Exchange Commission. Question 7. You are a senior associate at a large law firm, working in its Los Angeles office. For the past two years, you have led the team representing Fruit, Inc. in its defense against a class action lawsuit. Fruit, Inc.'s financial statements are currently being audited and the auditor plans to send an inquiry letter regarding the litigation. Which of the following might the auditor's inquiry letter request your comment on? (A) None of the following because outside counsel will only receive an auditor's inquiry letter if the letter was sent by mistake. (B) All of the following. (C) The progress of the case and a description of the claims. (D) The entity's strategy and intended course of action regarding the case. (E) The definitive likelihood that the outcome of the case will be unfavorable