1. Professional standards require that a report be issued whenever a CPA firm is associated with financial statements.
   1. True
   2. False
2. Auditing standards require that and audit report include the word 'independent" in the report's title
   1. True
   2. False
3. A qualified report is issued when all auditing conditions have been met, no significant mistreatment have been discovered, and it is the auditor's opinion that the financial statements are fairly stated in accordance with GAAP
   1. True
   2. False
4. The audit report is normally addressed by the company's president or chief executive officer.
   1. True
   2. False
5. The phrase "generally accepted accounting principles" can be found in the opinion paragraph of a standard unqualified report.
   1. True
   2. False
6. The most frequently issued type of audit is the standard unqualified audit report.
   1. True
   2. False
7. Changes in an estimate, such as a change in the estimated useful life of an asset for depreciation purposes, affect comparability but not consistency, and therefore do not require an explanatory paragraph in the audit report.
   1. True
   2. False
   4. The Securities and Exchange Commissionestablishes quality control standards that must be adhered to by CPA firms
      1. True
      2. False
8. The primary purpose of an operational audit is to determine whether the overall financial statements are in compliance with generally accepted accounting principles.
   1. True
   2. False
9. The primary purpose of a compliance audit is to evaluate the efficiency and effectiveness of an organization's operating procedures and methods.
   1. True
   2. False