Q6

A financial statement audit report issued for a public company states that the audit was performed in accordance with which of the following standards?

A Sarbanes-Oxley standards.

B Generally accepted auditing standards.

C Securities and Exchange Commission standards.

D Public Company Accounting Oversight Board standards.

Q7

The independent auditors plan for an examination in accordance with generally accepted auditing standards is influenced by the possibility of material misstatements. The auditor will therefore conduct the examination with an attitude of

A Professional responsiveness.

B Subjective mistrust.

C Professional skepticism.

D Objective indifference.

Q8

The phrase generally accepted accounting principles is an accounting term that

A Is included in the audit report to indicate that the audit has been conducted in accordance with generally accepted auditing standards (GAAS).

B Provides a measure of conventions, rules, and procedures governed by the AICPA.

C Includes broad guidelines of general application but not detailed practices and procedures.

D Encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time.

Q9

An independent auditor must have which of the following?

A pre-existing and well-informed point of view with respect to the audit.

Experience in taxation that is sufficient to comply with generally accepted auditing standards.

Technical training that is adequate to meet the requirements of a professional.

A background in many different disciplines.

Q10

Which of the following underlies the application of generally accepted auditing standards, particularly the standards for obtaining sufficient appropriate audit evidence?

The element of internal control over compliance with laws and regulations.

The element of "cooperative evidence."

The element of absolute assurance.

The elements of materiality and audit risk.