additional value and improved operations.

determination of efficient and effective performance.

provision of assurance and consulting activity.

independence and objectivity.

more expertise and improved control over audit costss

improved control over audit costs and improved alignment with company goals.

more expertise only.

all of the above

is seeking to help management use resources in the most effective manner possible.

can use analytical skills and tools that are not necessary in financial auditing.

starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them.

is concerned only with the audited activity's adherence to company policy and procedures.

supervision within the organization.

organizational status and individual objectivity.

organizational knowledge and skills.

individual knowledge and skills.

assist external auditors in reducing external audit fees.

serve as an independent, objective assurance and consulting activity that adds value to the organization.

serve as an investigative arm of senior management and the board of directors.

perform studies to assist in attaining more efficient operations.

Management has decided to increase the quality control activity to reduce the manufacture of unacceptable product to an acceptably low level.

Management has decided not to continue manufacturing this product.

Management has decided that the test data are unreliable and has decided not to respond to the audit findings.

Management is aware of the risk and has decided that it is acceptable.

It provides a commitment from management to support the internal audit department's activities.

It defines the skills and competencies required by the internal audit department.

It defines the department's authority and responsibility.

It defines the reporting requirements for internal audit departments.

internal auditors who collectively have the knowledge and skills needed to perform the responsibilities of the internal audit activities.

degreed accountants because most internal audit work is accounting related.

inexperienced personnel and train them the way the organization wants them trained.

internal auditors each of whom possess the skills required to handle all engagements.

the organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.

the organization's objectives and goals will be achieved efficiently and economically.

management directs processes to provide reasonable assurance of achieving objectives and goals.

management has planned and designed the process to provide reasonable assurance of achieving objectives and goals.

Benefits payments, when appropriate, are accurate and timely.

Participation levels support continuation of individual programs.

Individual programs are operating in accordance with contractual requirements and government regulations.

The level of the organizational contributions is adequate to meet the program's demands.

Governance standards.

Implementation standards.

Performance standards.

Attribute standards.

Performing a follow-up on audit findings.

Reporting to the audit committee.

Internal control evaluation.

Due care.

location, criteria, cause, effect, and recommendation.

condition, criteria, cause, effect, and recommendation.

condition, criteria, cause, effect, and requirement.

condition, source, cause, effect, and recommendation.

the degree to which an entity is acquiring, protecting, and using its resources effectively.

the causes of an organization's inefficiencies or uneconomical practices.

the entity's compliance with laws and regulations concerning matters of efficiency.

the effectiveness of an organization's programs, activities, or functions.

quality control.

performance of the engagement.

nature of work.

proficiency and due care.

Review of the results of programs.

Review of the means of safeguarding assets.

Review of the economy and efficiency in the use of resources.

Review of compliance with policies, plans, procedures, laws, and regulations.

internal control structure and the control risk assessment.

compliance with applicable laws and regulations.

all instances of illegal acts that could result in criminal prosecution.

recommendations for actions to improve operations.

the Single Audit Act of 1984.

the Sarbanes-Oxley Act or 2002.

the Audit Reduction Act of 1985.

the Uniform Requirements Act of 1992.

plan of organization.

adherence to managerial policies.

accounting errors.

operational efficiency.

financial statements.

program results.

efficiency.

economy.

Meet an experience requirement.

Have a full-time position as an internal auditor.

Pass a two-day examination.

Hold a college degree.

the size of the internal audit department.

lines of communication within the entity of the internal auditors.

organizational status of the internal auditors.

educational and experience qualifications of the internal auditors.

Internal auditing standards.

GAGAS only.

GAAS and GAGAS.

GAAS only.

External auditors must share responsibility for the work of internal auditors if it is used for evidence for the financial statement audit.

External auditors must investigate the competence and objectivity of internal auditors.

External auditors must review all work performed by internal auditors.

External auditors must consider the internal audit function as part of obtaining an understanding of a company's internal control structure.

Auditors are concerned only with financial statement errors; fraud examiners are concerned only with the theft of assets by employees.

Auditors are generally not concerned with small immaterial misstatements; fraud examiners generally do not believe that any fraud is immaterial.

Auditors use analytical procedures, such as trend analysis, to identify risks of misstatements; fraud examiners are not interested in analytical procedures because they must identify specific items that prove the occurrence of fraud.

Auditors are not concerned with the nature of a financial misstatement; fraud examiners are concerned with the nature of the misstatement.

Determine whether a fraud exists.

Determine how the fraud occurred.

Determine who was involved in the fraud.

Determine the effect on financial statement users.

indicate that the auditor does not possess legal skills and cannot make legal judgments.

provide an opinion on overall compliance with laws and regulations.

describe the laws and regulations with which the entity must comply.

state that compliance with laws and regulations is the responsibility of the entity's management.

Determine the extent to which the entity's programs achieve the desired level of results.

Briefly describe in the auditor's report the method of statistical sampling used in performing tests of controls and substantive tests.

Report on the scope of the auditor's testing of internal controls.

Assess whether the entity has reportable measures of economy and efficiency that are valid and reliable.

the Federal Accounting Standards Board.

the U.S. Supreme Court.

the Executive Office of Management and Budget.

the U.S. Congress.

public reports on government managers' following laws and regulations.

governmental managers' obligations to follow laws and regulations.

financial statement audits performed in accordance with generally accepted auditing standards.

acts discreditable to the profession.

write an adverse report on actual compliance.

write a disclaimer of opinion related to knowledge of noncompliance.

write a report modified to disclose particular noncompliance events (specific violations of laws and regulations).

write an unqualified report on actual compliance.

financial statement audit.

performance audit of air control regulation effectiveness.

performance audit of program goal achievement.

compliance audit of air safety regulations.

receive $300,000 or more federal funds.

spend $500,000 or more federal funds.

spend $300,000 or more federal funds.

receive $500,000 or more federal funds.

report on compliance regarding laws and regulations and report(s) on achievement of program goal(s).

report on internal control and report(s) on efficiency and effectiveness of operations.

report (opinion) on financial statements, report on internal control, and report on compliance audit regarding laws and regulations.

disclaimer of opinion on financial statements, report on internal control, and report on compliance audit regarding laws and regulations.

Abuse of public money and property and internal control design and strength of operation.

Abuse of public money and property and management's noteworthy positive accomplishments.

Presentation of financial statements in accordance with GAAP and internal control design and strength of operation.

Presentation of financial statements in accordance with GAAP and abuse of public money and property.

determine the organizational level to which the internal auditors report.

test a sample of the transactions and balances that the internal auditors examined.

examine documentary evidence of the work performed by the internal auditors.

evaluate the quality control program in effect for the internal auditors.

procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence.

procedures performed in assessing the risk of material misstatement and substantive tests performed in gathering direct evidence only.

procedures performed in obtaining an understanding of the internal control structure and substantive tests performed in gathering direct evidence only.

procedures performed in obtaining an understanding of the internal control structure and in assessing the risk of material misstatement only.

forensic auditing.

marking an evidential exhibit.

establishing evidential procedure.

preserving the chain of custody of the evidence.

The organizational level of the chief audit officer and the objectivity of the audit staff.

A requirement for the auditors to report to the audit committee and the composition of the audit committee.

The organizational status of the audit committee and the individual independence of internal auditors in the department.

The nature of the audit charter and the objectivity of the audit staff.

The controller had authority to change the audit schedule before being sent to management and the audit committee.

The CAE reports directly to the audit committee.

The auditors participated in the employee stock plan and, therefore, owned stock in the company.

The company decreased every department's budget, including internal audit, by 5%.

A warehouse employee assists an auditor in verifying the physical inventory of small motors.

An auditor recommends controls and performance measures for inclusion in a new contract with an outside service organization for the processing of payroll and employee benefits.

A former purchasing assistant performs a review of bidding procedures in the purchasing department four months after being transferred to the internal auditing department.

An auditor reviews the procedures for a new electronic data interchange (EDI) connection to a major customer before it is implemented.

Condition, relevance, evidence, effect, recommendation.

Condition, evidence, cause, effect, recommendation.

Condition, relevance, cause, effect, recommendation.

Condition, criteria, cause, effect, recommendation.

The person applying for the grant was the person that was utilizing the grant money.

Grant money was spent in accordance with the purpose of the grant.

The grant is properly recorded on the university's financial statements.

Cash received by the university was deposited in the appropriate account.

purchases made by the municipality have sufficient encumbrances.

the municipality as sufficient documentation to support all purchases.

the municipality's internal controls are operating effectively.

the municipality is in compliance with laws, regulations, and the municipality's policy and procedures.

Financial statement auditing.

Management auditing.

Performance auditing.

Operational auditing.

report on the company's relative success in attaining sustainability objectives.

assist management in establishing measurements for achieving company objectives.

establish funding requirements for sustainability programs.

determine whether the financial statements fairly present the company's expenditures on regulatory compliance.

reported the audit findings to the transportation committee of the state legislature.

performed audits of the state budget that included funding to the highway department.

lived in the state and utilized the highway system on a daily basis.

spouse was the CFO of the highway department.

Performance audit.

Compliance audit.

Governance audit.

Operational audit.

the organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.

the organization's objectives and goals are established within risk limits established by the internal audit organization.

management's policies and procedures will achieve objectives and goals.

management has planned and designed operations to provide reasonable assurance of achieving objectives and goals.

the amount of restitution that is made to the company when an individual is convicted of a fraud.

a reason to believe that a fraud has occurred.

evidence used in a court of law in proving fraudulent behavior.

the determination of the method used to enact a fraud.

to determine if a fraud has been committed.

establish who the perpetrators are.

inspect documentation for tampering.

identify possible motives to commit a fraud.

Determine the amount of restitution that should be received from the perpetrators.

Identify internal control weaknesses that allowed the fraud to occur.

Determine the scope of the fraud.

Determine from the evidence if a fraud has been committed.

elected or appointed and reporting to a legislative body of government.

auditing the branch of government to which they are assigned.

independent under AICPA Code of Professional Conduct rules.

free from sources of personal impairment.

appraisals of the economy and efficiency of operations.

review of effectiveness in achieving program results in comparison to pre-established objectives and goals.

review of control systems that ensure compliance with company policies, laws, and regulations.

audits of financial statements for security registration statements.

whether the department's goals are aligned with the organization's goals.

the causes of inefficiencies or uneconomical practices.

review of control systems to ensure compliance with company policies.

whether the entity is acquiring, practicing, and using resources economically and efficiently.

whether the financial statements of an audited entity fairly present the financial position in accordance with GAAP.

whether the agency has complied with laws and regulations applicable to the program.

the effectiveness of organizations, programs, activities, or functions.

the extent to which the desired results or benefits established by the legislature are being achieved.

engagement planning.

compliance with policies, plans, procedures, laws and regulations.

nature of work.

managing the internal audit activity.

a report on the auditee's compliance with applicable laws and regulations.

a report on the auditee's internal control structure and the control risk assessment.

a report of any significant accomplishments and management improvements.

audit report on financial statements.

That the laws and regulations have been complied with.

That an adequate internal control system is in place.

That the financial statements are presented fairly in accordance with GAAP.

An expanded scope audit of economy, efficiency, and program results.

External auditors.

Internal auditors.

Governmental auditors.

All of the above

Admonition.

Predication.

Suspicion.

Prediction.

admissibility of testimony.

evidence conservation.

chain of custody.

expert identification.

Merging of corporations creating fewer audit opportunities

Globalization

The shift from the industrial age to the knowledge age

Information Technology

develop efficient and effective accounting systems to ensure compliance with accounting standards and policy.

attest to the adequacy of controls over business operations.

improve the quality of information, or its context, for decision makers.

establish criteria for effective measurement of business activity.

the lack of CPA involvement in Internet company financial information.

a lack of security for information transmitted over the Internet.

the time delays in Internet purchases.

the reliability of computer technology.

all AICPA designated assurance services.

WebTrust and XBRL Services.

XBRL and SysTrust Services.

WebTrust and SysTrust Services.

Confidentiality of information

Proficiency in preparing transactions

Availability of the system, products, or services

Security from unauthorized use

WebSecure

XBRL

SysTrust

WebTrust

permits automatic checking of information.

improves the full disclosure of financial information.

reduces the chance of error.

increases the speed of handling of financial data.

better footnote disclosure in the companies' SEC filings.

better allocation of capital by investors.

reduced financing costs for companies.

more efficient and effective regulatory process.

examinations, reviews, compilations, agreed-upon procedures and assurance services.

examinations, reviews, and agreed-upon procedures.

examinations and assurance services.

only examinations.

financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance.

compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data.

financial statement information is the representation of the owners of the business.

a compilation service has been performed in accordance with standards established by the AICPA.

a compilation engagement.

a review engagement.

an attestation engagement.

an assurance service engagement.

the report requires a disclosure of the procedures performed during the attestation.

the report requires a statement that the presentation is not in accordance with GAAP.

the report to identify the subject matter of the assertion being reported on.

the report to include an opinion.

when the report may be submitted to individuals with insufficient knowledge of the nature of an attestation engagement.

when management may not understand the underlying assumptions of the attestation.

internal controls are difficult to assess.

the establishment of suitable measurement criteria is difficult.

all of these are true.

include negative assurance explicitly in the report.

follow the attestation standard related to evidential matter.

follow the attestation standard related to internal control.

a client employee named in a contract or regulation as being responsible for the information.

the client's Vice President of Marketing.

the independent accountant.

the client's controller.

Study the financial statements for indications that they conform to generally accepted accounting principles.

Obtain an attorney's letter regarding litigation and unasserted claims.

Perform analytical procedures to identify relationships and individual items that appear to be unusual.

Inquire about the accounting system and bookkeeping procedures.

notify the client that prior year audited financial statements cannot be presented when the current years statements have not been audited.

reissue the year X audit report with an explanatory paragraph disclosing that only a review was performed on year Y.

provide only the report concerning the year Y review.

report on the year Y review and reissue the year X audit report.

follows all of the Fundamental Principles of GAAS.

restricts the report to specified users.

includes negative assurance in the report.

gives a qualified audit report.

Examine cash disbursements in the subsequent period for unrecorded liabilities.

Send bank confirmation letters to the entity's financial institutions.

Obtain a client representation letter from members of management.

Communicate reportable conditions discovered during the assessment of control risk.

are special-purpose financial statements that are not comparable to those of prior periods.

are not compiled in accordance with Statements on Standards for Accounting and Review Services.

are prepared in conformity with a comprehensive basis of accounting other than GAAP.

might influence users' conclusions about the business, if the disclosures were included.

Perform cut-off tests for cash receipts and disbursements.

Inspect the open purchase order file.

Read the minutes of the board of directors' meetings.

Verify changes in key account balances.

explains how the results of operations differ from financial statements prepared in conformity with generally accepted accounting principles.

refers to the note to the financial statements that describes the special purpose framework.

states whether the financial statements are fairly presented in conformity with a special purpose framework.

justifies the reasons for departing from generally accepted principles.

A consulting engagement to provide constructive advice to the entity on its internal control structure

A prospective engagement to project, for a period of time not to exceed one year, and report on the expected benefits of the entity's internal control structure

An audit engagement to render an opinion on the entity's internal control structure

An attestation engagement to examine and report on management's written assertions about the effectiveness of its internal control structure

explain in the notes to the financial statements the terminology used.

issue a special statutory basis report that clearly disclaims any opinion.

apply to the state insurance commission for an advisory opinion.

disclose any reservations in an explanatory paragraph and qualify the opinion.

develop audit plans to determine whether the entity's financial statements are fairly presented.

understand the accounting principles of the industry in which the entity operates.

confirm with the entity's lawyer that material loss contingencies are disclosed.

assess the risk that a material misstatement could occur in a financial statement assertion.

Applying analytical procedures designed to corroborate management's assertions that are embodied in the financial statement components

Making inquiries of management concerning actions taken at meetings of the stockholders and the board of directors

Obtaining written representations from management indicating that the compiled financial statements will not be used to obtain credit

Reading the financial statements to consider whether they are free of obvious mistakes in the application of accounting principles

inherent limitations of internal control.

documentary evidence regarding the control environment factors.

potential benefits from the accountant's suggested improvements.

changes in the entity's internal control since the prior report.

a compilation consists primarily of inquiries of entity personnel and analytical procedures applied to financial data.

the accountant does not express an opinion or any other form of assurance on the financial statements.

the accountant assessed the accounting principles used and significant estimates made by management.

the scope of the accountant's procedures has not been restricted in testing the financial information that is the representation of management.

identify key factors affecting the information.

confirm expected sales with customers.

evaluate the assumptions used in preparing the projection.

obtain knowledge about the client's business.

projections are limited in their information content due to uncontrollable changes in the business environment.

the range does not indicate a "best" and "worst" case scenario.

the range of the projection is appropriate given the circumstances.

the $27,000,000 estimate is a best case scenario.

Management accepts responsibility for the effectiveness of its internal control.

Management presents a written assertion about the effectiveness of its internal control.

Management's evaluation of control can be supported by sufficient evidence.

Management has appropriately documented the internal controls.

Consider subsequent events

Confirm restrictions with applicable third-parties

Assess inherent risk

Assess planning materiality

an attestation was not performed.

a disclaimer of opinion is presented.

the auditor is providing negative assurance.

management had not established sufficient criteria for an opinion to be issued.

physical examination, inquiry, and obtaining a management representation letter.

analytical procedures, inquiry, and obtaining a management representation letter.

analytical procedures, reperformance, and obtaining a management representation letter.

physical examination, reperformance, and obtaining a management representation letter.

does not express an opinion.

provides a list of procedures performed and results found.

provides assurance that no material misstatement came to the auditors attention.

provides reasonable assurance that no material misstatements exist.

all appropriate disclosures must be presented.

managers or owners may choose to omit all the footnote disclosures.

an auditor provides only negative assurance.

financial statements must be presented in prescribed forms.

established sufficient criteria to form an opinion on the fair presentation of the financial information.

sent confirmation to third-parties concerning significant related-party transactions.

tested the entity's internal controls to determine that financial information is reliable.

have audited or be in the process of auditing the entity's latest financial statements.

in all cases.

when it has not been labeled as "unaudited".

when it is material to the financial statement users.

when the information has been reviewed rather than audited.

statements prepared on a cash basis.

statements that conform to accounting principles that are generally accepted.

statements prepared on a tax basis.

statements that conform to a regulatory agency.

Statement of Change in Partners' Capital Accounts

Statement of Revenue and Expenses

Statement of Assets, Liabilities, and Owner's Equity

Balance Sheet

should include the audit report of the service company's auditors with their auditors' report.

must audit the internal controls at the service organization.

need to understand the internal controls over the transaction regardless of the location of the control.

have no obligation concerning the internal controls at the service organization.

sending a confirmation concerning internal controls to the service organization's auditors.

reviewing a report on internal controls provided by the service organization's auditors.

inquiry with management of the service organization.

reviewing the contract with the service organization.

is limited to inquiry and analytical procedures for reports for non-SEC companies.

is required by the PCAOB for large public companies and may be performed by a CPA for nonpublic companies.

is optional for all companies whether they report to the SEC or not.

is required for all companies whether they report to the SEC or not.

The changes made to internal controls during the period under review

Status of uncorrected misstatements identified in previous engagements

Significant transactions occurring near the end of the reporting period

The accounting principles and practices used

Management has disclosed information about subsequent events

Management has made all adjustments identified during the review

Management's belief that it has answered all inquiries fully and truthfully

Management's responsibility for the fair presentation of the financial statements

Analytical procedures: Yes; Management representations: Yes; Understanding of internal controls: Yes

Analytical procedures: Yes; Management representations: Yes; Understanding of internal controls: No

Analytical procedures: Yes; Management representations: No; Understanding of internal controls: No

Analytical procedures: No; Management representations: Yes; Understanding of internal controls: No

a Service Organization Control (SOC) 3 report.

a type two service auditors' report.

a type one service auditors' report.

a description of its internal controls.

issue an opinion on the accounting treatment of a hypothetical transaction.

state that differences in facts, circumstances or assumptions might change the conclusion.

limit the report to the sole use of specified parties.

discuss the requirements with the client's current auditors.

internal control over financial reporting.

environmental responsibility.

social responsibility.

economic viability.