1. Which of the following best describes the fundamental, underlying reason for why there is demand for an independent auditor to report on financial statements?

   		A) A management fraud may exist and it is more likely to be detected by auditors if they are independent.
   		B) A poorly designed internal control system may be in place.
   		C) Different interests may exist between the company preparing the statements and the parties using the statements.
   		D) A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated.

2. Auditing services and attestation services are the same.

   True

   False

3. The accuracy of information included in footnotes accompanying the audited financial statements issued by a company whose shares are traded on a stock exchange is the primary responsibility of:

   		A) the independent auditor.
   		B) the securities and exchange commission.
   		C) the company's management.
   		D) the stock exchange officials.