1.Sometimes auditors opt to add additional information to the audit report. This additional information will be included in a(n)

A. Emphasis of matter paragraph.

B. Independence letter.

C. Internal control deficiencies report.

D. Management representation letter.

2.An emphasis of matter paragraph inserted in an audit report causes the report to be characterized as a(n)

Multiple Choice

A. Unmodified (unqualified) opinion report.

B. Divided responsibility.

C. Adverse opinion report.

D. Denial of opinion.

3.When is the engagement letter issued?

A. It is issued just as the audit work is beginning.

B. It is issued before starting the audit engagement.

C. It is issued at the end of the audit engagement.

D. It is issued during the audit.

4.After issuance of the auditor's report, if new information is discovered, the auditor

A.Has an obligation to perform additional audit procedures.

B.The auditor has an obligation to determine if the information is reliable and if the facts existed at the audit report date.

C.Has no obligation at all since the audit report has already been issued.

D.Must contact a lawyer.

5.In making a final assessment of materiality and audit risk, the component of misstatements found throughout substantive tests of details is referred to a

A. Known misstatement.

B. Likely misstatement.

C. Projected misstatement.

D. Possible misstatement.