9.Independent auditors principal purpose for obtaining an understanding of internal control and assessing control risk in a financial statement audit.

(A)To comply with generally accepted accounting principles

(B)To obtain a measure of assurance of managements integrity

(C)To maintain a state of independence in mental attitude during audit

(D)To determine the nature, timing, and extent of subsequent audit work

10. Who is ultimately responsible for the preparation of a companys financial statements?

(A)The internal auditors

(B)The external auditors

(C)The board of directors

(D)The shareholders

11.Fill in the Blank. A/n __________ opinion can result from a limitation on the scope of the audit or failure to follow generally accepted accounting principles

(A)Qualified

(B)Unqualified

(C)Disclaimer

(D)Adverse

13.Which of the following is an internal source of finance?

(A)Retained Earnings

(B)Bank loan

(C)Ordinary share issue

(D)Invoice discounting