Chapter 1

Question 1

The only professional who can audit a set of historical financial statements for a public or private company is

Answer 1

a Certified Public Accountant (CPA)

Question 2

Any group that will be using the financial statements to make decisions, such as investors and creditors, is known as

Answer 2

Intended users

Question 3

Identify a service that falls under audit services.

Answer 3

examination of historical financial statements

Question 4

Assurance, attestation, and auditing are similar because all three represent a common process of

Answer 4

taking information prepared by someone else and then comparing it to an established set of criteria.

Question 5

The purpose of audit services is to provide

Answer 5

financial statement users with an opinion as to the fair presentation of the financial reporting.

Question 6

The function of an internal audit is determined by

Answer 6

those charged with governance and management.