1. The auditor's responsibility section of the standardunmodified opinion audit report under US GAAS states:

a) that the audit is designed to obtain reasonable assurance asto whether the financial statements are free of materialmisstatement whether due to fraud or error

b) that the procedures performed were specified by generallyaccepted auditing standards

c) that the financial statement audit includes proceduressufficient to express an opinion on whether the company's internalcontrol over financial reporting is effective

d)all of the above

2. The standard unmodified opinion audit report under US GAASmust include the name of the audit partner responsible for issuingthe audit report

True False

3. Which of the following are required to be included in anaudit report under the Standards of the PCAOB?

a) the name of the audit partner responsible for the audit

b) the signature of the audit firm that issued the auditreport

c) a statement that the firm is a member of the AICPA

d) all of the above

4. Which of the following statements regarding internal controlover financial reporting (ICFR) for US public companies arecorrect?

a) management of all US public companies must assess and reporton the effectiveness of their ICFR

b) certain of the largest US public companies must engage theirauditor to audit and report on the effectiveness of the companies'ICFR

c) PCAOB Auditing Standard No. 5 requires that the audit ofinternal control be integrated with the audit of the financialstatements

d) all of the above

5. The auditor identified a misstatement in the financialstatements that was material but not pervasive. If management failsto correct the misstatement, the auditor's report on thosefinancial statements should include:

a) a qualified opinion

b) an adverse opinion

c) a disclaimer of opinion

d) none of the above: the auditor is required to withdraw fromthe audit engagement

6. The auditor was unable to audit a portion of the financialstatements that was very highly material. If the audit clientinsists that the auditor issue a report on those financialstatements, the auditor should

a) qualify the opinion for a scope limitation

b) disclaim an opinion because of a scope limitation

c) qualify the opinion for a departure from GAAP

d) issue an unqualified opinion on the financial statements withan extra paragraph describing the reasons for the scopelimitation