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OL Quiz 1-Audit 1 | Download for quality grades |

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AUDITING 1QUIZ 1.An external audit a. support an internal audit. b. duplicates an internal audit. c. overlaps an internal audit. d. complements an internal audit. 2.The primary objective of th... e ordinary examination of financial statements by a CPA is the expression of an opinion on the a. competence of management in accounting matters which is implied by whether the opinion is qualified or not. b. conformity of the statements with the book of account. c. conformity of the financial statements with generally accepted auditing standards applied on a basis consistent with that of the preceding year. d. fairness with which the financial statements present financial position and results of operations. 3.Although the CPA does not guarantee his findings, his opinion is never the less valuable to various third parties. The value of the CPA's opinion lies in the fact that a. he has the qualifications required by law to be a CPA. b. he is under the supervision of the Board of Accountancy. c. he has gathered sufficient, competent, evidential matter to support his opinion. d. he has followed generally accepted auditing standards. 4.Operational audits generally have been conducted by internal auditors and governmental audit agencies but maybe performed by CPAs. A primary purpose of an operational audit is to provide a. a means of assurance that internal accounting controls are functioning as planed. b. a measure of management performance in meeting organizational goals. c. the results of internal examination of financial and accounting matters to a company's top level management. d. aid to the independent auditor, who is conducting the examination of the financial statements. 5.The independent auditor lends credibility to a client's financial statements by [Show More]

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