Answer the following multiple$-$choice questions. Each question should be answered independent of the other questions.THANK YOU

$1.$ The auditor of a private company may, in addition to auditing the financial statements, assist in the preparation of the financial statements provided:

A$.$ Management of the Company acknowledges their responsibility for the statements and designates an appropriately qualified individual to oversee the auditor$$s preparation service.

B$.$ If members of the firm$$s tax and write$-$up departments prepare the financial statements without any assistance from the engagement team.

C$.$ The notes to the financial statements are prepared by management of the Company based on the prior year$$s financial statements.

D$.$ The audit firm only prepares the Company$$s balance sheet, statement of income, and statement of changes in stockholders$$ equity. The statement of cash flows must be prepared by management.

$2.$ If an audit firm sends positive confirmation request to ALL of the Company$$s customers, as of the Company$$s year$-$end and the confirmations come back with NO exceptions, testing of a Company$$s revenue recognition is NOT necessary.

A$.$ True

B$.$ False

$3.$ The accounting for subsequent events is governed by the requirements of AU$-$C Section $560.$

A$.$ True

B$.$ False

$4.$ Once an audit firm starts an audit, the firm is obligated to issue either an unmodified opinion or a qualified opinion. The disclaimer of an opinion is not an option.

A$.$ True

B$.$ False

$5.$ In accordance with AU$-$C Section $240,$ Consideration of Fraud in a Financial Statement Audit, the risk of the auditor not detecting a material misstatement resulting from management fraud is greater than employee fraud because.

A$.$ Auditors are often reluctant to perform audit procedures designed to uncover management fraud.

B$.$ Management is often able $($by virtue of their positions$)$ to override controls designed to prevent similar frauds by other $($non$-$management$)$ employees.

C$.$ Employee frauds are committed more often than management frauds.

D$.$ Management works a lot on weekends when other employees are not in the office.

$6.$ ASC $850,$ Related Party Disclosures requires the disclosure of management$$s affirmative statement regarding the fair value of related party transactions.

A$.$ True

B$.$ False

$7.$ The PCAOB establishes accounting standards for US companies that are registered with the Securities and Exchange Commission.

A$.$ True

B$.$ False

$8.$ Under Generally Accepted Auditing Standards, an auditor$$s report should be dated.

A$.$ The auditor$$s report should be dated the same date as the Company$$s year$-$end.

B$.$ Not more than $60$ days after the completion of the audit procedures.

C$.$ At the date requested by management.

D$.$ When management has provided the required representations and the engagement team is satisfied with its audit evidence and related documentation.

$9.$ Recognized subsequent events in accordance with generally accepted audit standards, should be$.$

A$.$ Disclosed in the Company$$s financial statements, but not recorded.

B$.$ Included in the Company$$s financial statements.

C$.$ Ignored.

D$.$ None of the above. Generally accepted audit standards do not dictate accounting for subsequent events.

$10.$ In order to be licensed as a CPA in Virginia, an applicant must.

A$.$ Have an undergraduate degree in accounting and pass the CPA exam.

B$.$ Have an undergraduate degree, pass the CPA exam, and have $150$ hours of college credit, including $30$ hours of graduate courses.

C$.$ Have an undergraduate degree, pass the CPA exam, and have $150$ hours of college credit.

D$.$ None of the above is correct.