Question

True and false questions

10) Under Rule 101, Independence, independence is considered to be impaired if fees remain unpaid for                 professional services provided more than six months before the date of the current year's report.    

    11) The criteria by which an auditor evaluates the information under audit may vary with the information                    being audited.

      12) The criteria used by an external auditor to evaluate published financial statements are known as                                 generally accepted auditing standards.

     13) An auditor must be competent and have an independent mental attitude.

     14) CPA firms are never allowed to provide bookkeeping services for clients.

      15) The primary purpose of a compliance audit is to determine whether the financial statements are                                  prepared in compliance with generally accepted accounting principles.

     16) Many small, local accounting firms do not perform audits as their primary services to their clients they                        offer other services include accounting and tax.

      17) The overall purpose of the Securities and Exchange Commission is to assist in providing investors with                      reliable information upon which to make investment decisions.   

      18) Membership in the AICPA is restricted to CPAs who are currently practicing as independent auditors.

      19) Any public accounting firm can be a member of the AICPA if the firm meets the membership                                    requirements.  

     20) International Standards on Auditing are issued by the International Auditing and Assurance                                   Standards Board.

Answer 1

SOLUTION IS -

10. FALSE

11. TRUE

12. FALSE

13. TRUE

14. FALSE

15. TRUE

16. TRUE

17. TRUE

18. FALSE

19. TRUE

20. TRUE