1. An audit that involves obtaining and evaluating evidence about the efficiency and effectiveness of an entity's operating activities in relation to specified objectives is a(n):
a. internal audit.
b. external audit.
c. operational audit.
d. compliance audit.
e. financial statement audit.
2. An audit that involves obtaining and evaluating evidence in order to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations is a(n):
a. internal audit.
b. external audit.
c. operational audit.
d. compliance audit.
e. financial statement audit.
3. Which one of the following was not listed as an inherent limitation of a financial statement audit?
a. accounting estimates
b. reasonable length of time
c. alternative accounting principles
d. reasonable cost
e. level of complexity
4. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
5. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
5. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
6. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
7. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
8. What level of assurance does the reader of a private company financial statement receive on the company's system of internal controls?
a. positive assurance
b. reasonable assurance
c. negative assurance
d. no assurance
e. limited assurance
9. How many different opinions must an auditor of a publicly held company issue?
a. 1
b. 2
c. 3
d. 4
e. 5
10. The primary purpose of the audit is to provide reasonable assurance that the financial statements are fairly presented in accordance with
a. GAAS
b. GAAP
c. AICPA
d. FASB
e. SEC
11. Which of the following is not a tort?
a. breach of contract
b. negligence
c. gross negligence
d. fraud
e. ordinary negligence