Please answer all the questions

1. Considering the value of an audit, which item involves: company

managers will invite the audit so they will be compensated properly

for their work??

a. Capital allocation theory

b. Motivation Theory

c. Principal/Agent theory

d. Professional skepticism theory

2 A practitioner is engaged to issue a report on subject matter,

or an assertion about subject matter, that is the responsibility

of another party. relates to

a. Accounting service.

b. Assurance service.

c. Attest service.

d. Financial audit service.

3. A financial audit is related to which economic factor of

production?

a. Allocation of financial capital

b. Labor

c. Land

d. Manufacturing

4. Which of the following terms is associated with the auditing

standard stating:

In rare circumstances, the auditor may judge it necessary to

depart from a relevant presumptively mandatory requirement.

In such circumstances, the auditor should perform alternative

procedures to achieve the intent of the requirement. AU-C200.26

a. Can c. Must

b. May d. Should

5. Consider the charity CARE [assume that it is a USA Not-for-profit

entity]. An audit of CARE would follow auditing standards issued by:

a. AICPAs Auditing Standards Board

b. Financial Accounting Standards Board

c. International Auditing and Assurance Standards Board

d. Public Company Accounting Oversight Board

e. Securities and Exchange Commission