1. Modified True/False - There are 30 statements below. If they are "true", then write the word "true" in the space provided. If the statement is false, you must change the statement, so that it is becomes "true". Only half- credit will be given, if you do not correct the false statement. (30 questions, 2 points each, 60 points total). 1. An auditor's report on compliance with contractual or regulatory requirements must be prepared by a different CPA firm than the one preparing the audit of the financial statements. 2. An accountant's compilation report prohibits the use of single financial statements. 3. An accountant's compilation report is less comprehensive than a review. 4. An accountant must always maintain independence even when preparing financial statements for a company where she is employed. 5. Assurance services include expressing an unqualified auditor's opinion about a company's financial statements. functions. 6. An audit examination does not require an auditor's opinion. 7. Trust services provided by an auditor refers to estate and financial planning 8. In assessing internal control over notes receivable, the file containing the notes is administered in the Cashier's Office. This is an example of good segregation of duties. 9. The McKesson-Robbins case affirmed the auditor's need for observation of the physical inventories. 10. Unadjusted COGS includes net amounts for over- or under-applied overhead. 11.A new auditor may never accept beginning inventory balances