Auditing 445

18) The risk that a company will not be able to meet its obligations when they DELICU aspect of A) Information risk. C) Inherent risk. B) Business risk. D) Relative risk. B 19) Which of the following is most likely to be included in a public company financial 19) statement audit report? A) The year the auditor began serving the company. (B)) The audit was performed in accordance with generally accepted auditing standards. C) The name of the engagement partner. D) Adverse opinion. 20) 20) Which of the following is not a broad category of threat to auditor independence? A) Financial self interest. B) Undue Influence. C) Familiarity. D) Positive work relationship. TRUE/FALSE. Write T'if the statement is true and 'F' if the statement is false. 21) When a CPA firm enrolls in the AICPA Peer Review Program, it agrees to comply with 21) the AICPA's Quality Control Standards and to have a peer review of its accounting and Lauditing practice every seven years. 22) The American Institute of Certified Public Accountants creates the CPA Exam, while 22) individual states issue CPA certificates and permits CPAs to practice. 23) Partners in CPA firms usually have the responsibility for signing the firm's name on the 23) audit report. 24) Immaterial financial interests of a CPA's nondependent children impair the CPA'S 24) independence. 25) Negligence is defined as failure to use reasonable care in the performance of services. 25) 26) When evaluating the results of audit tests, materiality depends solely upon the dollar 26) amount of the item