15) True and false (10 1.5 = 15 )
1. In order to obtain reasonable assurance, the auditor must examine all documents available that support the financial statements.
2. An auditor of an entity subject to the rules of the SEC must conduct the financial statement audit in accordance with PCAOB standards.
3. The date of the CPAs opinion on the financial statements of the client should be the date of the submission of the report to the client.
4. When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can continue in existence, the auditor should issue qualified opinion only.
5. The major reason an independent auditor gathers audit evidence is to detect fraud.
6. An auditor reviews aged accounts receivable to assess likelihood of collection to support managements assertion about account balances of existence.
7. The auditors responsibility regarding material misstatements caused by fraud is less than the auditors responsibility regarding material misstatements caused by error.
8. Some account balances are the result of complex calculations. The susceptibility to material misstatements in these types of accounts is defined as inherent risk.
9. The audit files primarily are considered to be evidence supporting financial statements.
10. Collusion among employees is considered an inherent limitation of the potential effectiveness of an entitys internal control structure
