Practice Quiz

CPA Accountant Review Questions - Question List

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66. Why are internal auditors of a company barred from auditing the financial statements?
  1. To accommodate external auditors
  2. To prevent internal auditors from auditing financial information he/she prepared
  3. Internal auditors can be unreliable
  4. It is cost-effective
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67. Which of the following information does an external auditor rely on?
  1. Financial statements
  2. Grapevine communication
  3. Discussions with senior management
  4. Discussions with every member of staff
  5. All of the above
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68. What is the difference between an internal and external auditor?
  1. Internal auditor prepares the set of financial statements, whereas external auditor does not do so
  2. Internal auditor focuses on fraud, external auditor evaluates misstatements
  3. Internal auditor is employed by the entity, whereas, external auditor is independent
  4. No difference, change in nomenclature based on the type of audit performed
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69. What does an auditor aim for when auditing financial statements?
  1. Reasonable assurance
  2. Absolute assurance
  3. Exclusive assurance
  4. Inclusive assurance
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70. When does maintaining an audit trail become imperative during litigation?
  1. Fact documentation testimony
  2. Fact witness testimony
  3. Fact plaintiff testimony
  4. Bare fact testimony
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