Question 2: MULTIPLE CHOICE QUESTIONS: (41) (5 Points) 1. The standard auditors' report for the audit of a company generally includes an introductory paragraph, a scope paragraph, and an opinion paragraph. In the report the auditors refer to both accounting principles generally accepted in the U.S. and auditing standards generally accepted in the U.S. In which of the paragraphs are these terms used? A. GAAP in the scope paragraph and GAAS in the opinion paragraph. B. GAAS in the scope paragraph and GAAP in the opinion paragraph C. GAAS in all paragraphs and GAAP in the scope paragraph. D. GAAP in all paragraphs and GAAS in the opinion paragraph. 2. Which of the following terms best describes the audit of a taxpayer's tax return by an IRS auditor? A. Operational audit B. Internal audit. C. Compliance audit. D. Government audit. 3. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence? A. Bank statement obtained from the client. B. Prenumbered client sales invoices. C. Vendor's invoice. D. Computations made by auditor. 4. The current file of the auditor's working papers generally should include: A. A flowchart of the internal accounting controls. B. Organization charts. C. A copy of the financial statement. D. Copies of bond and note indentures. 5. The inspection of a vendor's invoice by the auditors is: A. Direct evidence about occurrence of a transaction. B. Physical evidence about occurrence of a transaction. C. Documentary evidence about occurrence of a transaction. D. Part of the client's accounting system