part -a

1) If a company does not allow an auditor access to documents or limits the audit procedures, this is known as a

• a) Material departure from GAAP.

• b) Reason to stop the audit.

• c) Departure from GAAP.

• d) Scope limitation.

2) An association can arise

Multiple Choice

• a) A third party assume the public accountant is involved with information issued by a company.

• b) Only after the financial statements are signed and released.

• c) Only when the public accountant accepts payment for services.

• d) Only with the knowledge and explicit agreement of the public accountant.

3) When other independent auditors are involved in the current audit on parts of the clients business, the principal auditor can write an audit report that:

• a) names the other auditors, describes their work, and presents only the principal auditors report.

• b) places primary responsibility for the audit report on the other auditors.

• c) mentions the other auditors but fails to describe the extent of the other auditors work, and gives an unqualified opinion.

• d) does not mention the other auditors and gives an unqualified opinion in a standard unqualified report.

4) If a public accountant (PA) consents to the use of his or her name in information. What step does the PA not have to complete?

• a) Determine who else is associated with the information.

• b) Determine the information is not misleading.

• c) Determine the information is accurately reproduced.

• d) Determine if the reference to his or her name has been used accurately.