Question 5 (1 point) Business risk is the risk that the financial statements do not reflect the economic substance of business activities. True False Question 6 (1 point) An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should express a qualified opinion or disclaimer of opinion express a qualified or adverse opinion O provide a disclaimer of opinion on the financial statement not modify the opinion paragraph as long as the departure is adequately disclosed ia footnote Question 3 (1 point) Reducing information risk means the same as 1) serving the public interest 2) monitoring economic activities 3) improving the credibility of information 4) ensuring generally accepted accounting principles are used to measure profit 15 Question 4 (1 point) In common law actions, the burden of proof lies with the 18 defendant plaintiff jury the Government Question 7 (1 point) In the unmodified audit report, an auditor provides a "clean" audit opinion on the entire financial statements, including all of the footnote disclosures. True False Question 8 (1 point) The role of the auditor is to satisfy user's demand for reliable information. True False Question 9 (1 point) If a public accountant (CPA) performs the bookkeeping and makes accounting decisions for a company and the management does not know enough about the financial statements to take primary responsibility for them, the PA cannot be considered independent for assurance services. 1) True 2) False Question 11 (1 point) When a client will not permit inquiry of outside legal counsel, the audit report will ordinarily contain aln) 1) disclaimer of opinion O2) "except for" qualified opinion regarding a departure from generally accepted accounting principles 3) unqualified opinion with a separate explanatory paragraph 4) adverse opinion Question 12 (1 point) The assurance function involves the lending of credibility to financial information. O 1) True 2) False