The following questions concern the reasons auditors do audits, or responsibilities during audits. Choose the best response.

a. Which of the following best describes the reason why an independent auditor reports on financial statements?

(1) A management fraud may exist, and it is more likely to be detected by independent auditors.

(2) Poorly designed internal controls may be in existence.

(3) Different interests may exist between the company ^ preparing the statements and the persons using the statements.

(4) A misstatement of account balances may exist and is generally corrected as the result of the independent auditor's work.

b. An independent audit aids in the communication of eco¬ nomic data because the audit

(1) guarantees that financial data are fairly presented. (2) confirms the accuracy of management's financial representations.

(3) lends credibility to the financial statements.

(4) assures the readers of financial statements that any fraudulent activity has been corrected.

c. The major reason an independent auditor gathers audit evidence is to

(1) form an opinion on the financial statements.

(2) detect fraud.

(3) assess control risk.

(4) evaluate management.

(AICPA adapted)

d. The primary responsibility for the adequacy of disclosure in the financial statements and footnotes rests with the

(1) partner assigned to the engagement.

(2) staff member who drafts the statements and foot¬ notes.

(3) auditor in charge of field work.

(4). client.