11. Internal controls are to provide reasonable assurance of:
a. reliability of financial reporting
b. effective and efficiency of 3rd party operations
c. compliance with audit standards
d. all of the above
12. Three of the five basic business processes are:
a. purchasing, inventory, information technology
b. revenue, financing, security
c. financing, inventory, purchasing
d. human resources, security, purchasing
13. If you are an auditee who was just audited, you would be most pleased with the
a. an adverse opinion
b. a disclaimer
c. a qualified opinion
d. an unqualified opinion
14. Audit risk is the combination of elements. One that there are material mi
15
a. the company will go into chapter 11
b. auditors will fail to detect any such misstatement
c. auditors do not retain audit papers for a reasonable time
d. auditors will not be given the documentation they asked for
Auditing standards refer to the combination of Inherit Risk and C