Question

1.An auditor's report includes the following paragraph. All other parts of the report remain unchanged: "We draw attention to Footnote XX to the attached financial statements, which describes the adoption of recent standards issued by the Financial Accounting Standards Board and pertaining to the recognition of intangible accounts." This paragraph is most likely included in which type of opinion? a. Adverse opinion b. Unqualified opinion c. Disclaimer of opinion d. Qualified GAAP opinion

2.

All CPA firms registered with the PCAOB and completing audits of publicly traded companies are required to have annual PCAOB inspections.

True

False

3.

Which of the following is an example of an "adverse interest" threat to a member's independence?

	a.	The audit firm sues its client for collection of audit fees.
	b.	The audit firm has developed a long-lasting relationship with its client.
	c.	An audit staff member has made an investment in 1 share of her client's stock.
	d.	The client is telling her auditor that she either issue an unqualified opinion or loose the audit client.

4.

A CPA who is not independent can perform which of the following services under AICPA auditing standards?

	Preparation Services	Tax Return Preparation
A	Yes	Yes
B	Yes	No
C	No	Yes
D	No	No

5.

CPA firms are never allowed to perform bookkeeping services for their attestation clients.

True

False