Auditing 445

ELULUCUM 1) 1) Which of the following types of services is generally provided only by CPA firms? A) Operational audits. B) Financial statement audits. C) Tax audits. D) Compliance audits. 2) The review of a company's financial statements by a CPA firm: 2) A) Culminates in issuance of a report expressing the CPA's opinion as to the fairness of the statements. B) Requires detailed analysis of the major accounts. C) Is substantially less in scope of procedures than an audit. D) Is of similar scope as an audit and adds similar credibility to the statements. 3) The sequentially-numbered pronouncements issued by the Auditing Standards Board 3) over a period of years are known as: A) Auditing Statements of Position (ASPs). B) Statements on Auditing Standards (SAS). C) Statements on Auditing Principles (SAPs). D) Accounting Series Releases (ASRs). 4) 4) The risk that a company's financial statements will materially depart from generally accepted accounting principles is referred to as: A) Control Risk. B) Detection Risk. C) Business Risk D) Information Risk 5) 5) Which of the following is least likely to be included as a titled section in a standard unqualified public company audit report? A) Critical audit matters section. B) Basis for opinion section. C) Management responsibilities section. D) Opinion section. 6) Which of the following best describes a portion of the auditors' responsibility regarding 6) noncompliance with laws by clients? A) If audit procedures reveal noncompliance, the auditors should take appropriate actions. B) The auditors have a responsibility to discover all material noncompliance