Problem 1: 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
Problem 2: Internal auditors are primarily involved with:
a. compliance audits.
b. operational audits.
c. compliance audits and operational audits.
d. financial statement audits.
e. governmental audits.
Problem 3: In order for a plaintiff to recover against an auditor under the 1933 Securities Act, he or she must normally prove:
a. reliance on the financial statements.
b. gross negligence on the part of the auditor.
c. the financial statements were materially false or misleading.
d. ordinary negligence on the part of the auditor.
e. reliance, misleading statements and ordinary negligence.
Problem 4. Which of the following would be an example of a foreseeable party?
a. all creditors
b. stockholders
c. present investors
d. future investors
e. all of the above