1) When auditing accounting data, auditors focus on 1) A) determining if taxable income has been calculated correctly B) determining if fraud has occurred C) determining whether recorded information properly reflects the economic events that occurred during the accounting period D) analyzing the financial information to be sure that it complies with government requirements. 2) The use of the Certified Public Accountant title is regulated by 2) A) state law through the licensing departments of each state B) the American Institute of Certified Public Accountants through the licensing departments of the tax and auditing committees. C) the federal government. D) the Securities and Exchange Commission 3) In the audit of historical financial statements, management asserts that the financial statements are 3) fairly stated in accordance with what standards? A) regulatory accounting principles B) applicable U.S. accounting standards C) applicable international accounting standards D) B and C 4) Recording, classifying, and summarizing economic events in a logical manner for the purpose of 4) providing financial information for decision making is commonly called B) economics A) auditing C) accounting. D) finance 5) An accountant 5) A) must be a CPA B) must possess expertise in the accumulation of audit evidence. C) must decide the number and types of items to test. D) must have an understanding of the principles and rules that provide the basis for preparing the accounting information 6) A high, but not absolute, level of assurance is called 6) A) limited assurance C) incomplete assurance B) reasonable assurance D) probable assurance