Read the following questions and then decide which choice is the best: 1. Audit evidence takes many different forms, including: (A) Written communication with outsiders (B) Oral representations made by client employees (c) Observations by the auditor (D) All of the above 2. Which of the following best describes Generally Accepted Auditing Standards? General guidelines to aid auditors in fulfilling their professional responsibilities in the (A) audit of financial statements Rules acknowledged by the accounting profession because of their universal (B) importance c) Pronouncements issued by the Auditing Standards Board D) Procedures to be used to gather evidence to support financial statements 3. In all cases, audit report must: (A) Certify the accuracy of the quantitative information which was audited. (B) Communicate the auditor's findings to the general public. (C) Be signed by the individual who performed the audit procedures Inform readers of the degree of correspondence between quantifiable information and (D) the established criteria. Which of the following type of audit provides the highest level of assurance to third 4. parties about a company's financial statements? (A) Operational audit (B) Compliance Audit (C) Audit of historical financial statements (D) All of the above Which of the following is an element of a quality control system that should be 5. considered in establishing its quality control policies and procedures? (A) Managing personnel (B) Using statistical sample techniques (c) Considering audit risk and materiality (D) Complying with laws and regulation