1.Which of the following is not an economic benefit of a financial statement audit?
a.access to capital markets
b.control and operational improvements
c.lower cost of capital
d.decreased inflation rates
e.deterrent to inefficiency and fraud
2.A CPA performing audits of governmental entities must adhere to standards established by:
a.the AICPA.
b.the GAO.
c.both the GASB and by the GAO.
d.the FASB.
e.both the FASB and by the GAO.
3.Which one of the following types of services offered by a CPA is not an attest service?
a.examination
b.review
c.performing agreed-upon procedures
d.audit
e.accounting
4.The use of negative assurance in a report by a CPA associated with a set of financial statements would be appropriate only in:
a.examinations.
b.reviews.
c.agreed-upon procedures.
d.reviews and agreed-upon procedures.
e.audits.
5.The subject matter of auditing consists of:
a.assertions.
b.established criteria.
c.evidence.
d.written reports.
e.compliance.