All CPA firms are required to undergo a peer review at least once every two years.

True

False

The criteria by which an auditor evaluates the information under audit may vary, depending on the information being audited.

True

False

All audit evidence must be in written form; oral statements by the client are not considered sufficiently reliable to be evidence.

True

False

The criteria used by an external auditor to evaluate published financial statements are generally accepted accounting principles.

True

False

The financial statements most commonly audited by external auditors are the statements of financial position, income statement, and statement of cash flows.

True

False

The primary purpose of an operational audit is to evaluate the efficiency and effectiveness of an organizations operating procedures and methods.

True

False

The primary purpose of a compliance audit is to determine whether the overall financial statements are stated in accordance with generally accepted accounting principles.

True

False

Results of compliance audits are typically reported to someone within the organizational unit being audited rather than to a broad spectrum of outside users.

True

False

The primary role of the United States General Accounting Office is the enforcement of the federal tax laws as defined by Congress and interpreted by the courts.

True

False

Information risk decreases as business organizations become larger.

Truer

False