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Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A)

Please help me to solve these questions. Thank you so much!

1. Which of the following is not correct relating to financial statement audit?

A) Financial statement audits of today place more emphasis on sampling than did the audits of the 19th century.

B) FASB can set up the audit standards for U.S. CPA firms.

C) The American Institute of Certified Public Accountants can set up audit standards.

D) The Sarbanes-Oxley Act requires that auditors of certain publicly traded companies in the United States perform an integrated audit.

2. The risk that a company's financial statements will contain significant accounting misstatement is referred to as:

A) Business Risk.

B) Information Risk.

C) Detection Risk.

D) Control Risk.

3. In a financial statement audit, the auditor obtains a reasonable level of assurance about whether the financial statements are free from material misstatements in order to express his final opinion. In order to obtain reasonable assurance, the auditor must

A) have prior experience in the industry in which the audit client operates.

B) examine all documents available at clients office.

C) obtain sufficient and appropriate audit evidence.

D) test all controls around significant transaction cycles.

4. According to PCAOB audit standards, audit documentation must be retained for at least

A) three years.

B) five years.

C) seven years.

D) as long as possible until PCAOB allows a CPA firm to get rid of those files.

5. Which of the following is correct relating to financial statement audit for a publicly traded company in the U.S.:

A) the auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.

B) the auditors get all the audit evidence from the management.

C) the CPA firm can still provide information consulting services to its audit client even after 2005.

D) Partners in CPA firms usually sign the firm's name on the audit report.

6. An audit provides reasonable assurance of detecting which of the following types of material illegal acts?

Direct Effect

Without a Direct Effect

A) Yes Yes.

B) Yes No

C) No Yes

D) No No

7. Which of the following is not included in the auditors' standard unmodified audit report for a nonpublic company?

A) The procedures selected by the auditor depend on the auditor's judgment.

B) An audit includes evaluating the appropriateness of accounting policies used.

C) An audit includes evaluating the overall presentation of the financial statements.

D) Preferred accounting principles have been consistently applied.

8. Which of the following is not correct relating to the Sarbanes-Oxley Act?

A) It toughens penalties for corporate fraud.

B) It restricts the types of consulting CPAs may perform for audit clients.

C) It created the Public Company Accounting Oversight Board (PCAOB) as a replacement for the Financial Accounting Standards Board.

D) It eliminates a significant portion of the accounting profession's system of self-regulation.

9. Which of the following is not a type of auditors' opinion?

A) Adverse.

B) Ordinary.

C) Qualified.

D) Unqualified.

10. Which of the following is explicitly included as a part of the description of management's responsibility in an unqualified audit report?

A) Management is responsible for making a judgment on which misstatements are material vs. immaterial.

B) Management is responsible for providing auditors with all relevant audit evidence to support the final audit opinion.

C) Management is responsible for the design, implementation, and maintenance of internal control.

D) Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures.

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