TRUE OR FALSE

7. CPAs have the same responsibility to detect illegal acts of a client that have a material indirect affect on the financial statements as they do for finding material fraud.

8. If an auditor cant obtain enough evidence to complete an audit, an adverse opinion should be given.

9. According to the introductory paragraph of the standard auditors report of a private company, the financial statements being audited are the responsibility of the auditor.

10. When auditing financial statements of private companies, the auditor is not required by GAAS to assess the strength of internal controls, because the audit is about financial statements, not internal controls.

11. A $500,000 error in an audit clients cash account would be considered less significant that a $500,000 error in accumulated depreciation.