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QUESTION 1
The purpose of an audit is to express an opinion on whether the financial statements are in
accordance with GAAS.
True
False
QUESTION 2
Assertions relating to the financial statements are set forth by the auditor.
True
False
QUESTION 3
An audit should test every item in the financial records of the client.
True
False
QUESTION 4
The completeness assertion posits that all transactions and events that should have been recorded
were recorded.
True
False
QUESTION 5
Audits of issuers must follow the standards of the Public Company Accounting Oversight Board.
True
False
Solution
1. True
2. True
3. True
4. False
5. True

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  • 1. QUESTION 1 The purpose of an audit is to express an opinion on whether the financial statements are in accordance with GAAS. True False QUESTION 2 Assertions relating to the financial statements are set forth by the auditor. True False QUESTION 3 An audit should test every item in the financial records of the client. True False QUESTION 4 The completeness assertion posits that all transactions and events that should have been recorded were recorded. True False QUESTION 5 Audits of issuers must follow the standards of the Public Company Accounting Oversight Board. True False
  • 2. Solution 1. True 2. True 3. True 4. False 5. True