Ch7quiz

Student:___________________________________________________________________________

1.AllcompaniesmustfollowtheguidelinesofAS5.
TrueFalse

2.Inapubliccompany,managementmustassessandreportoninternalcontroloverfinancialreporting.
TrueFalse

3.Inapubliccompany,management'sreportoninternalcontrolmustbesignedbythemembersoftheaudit
committee.
TrueFalse

4.BasedonPCAOBguidelines,theauditofICFRandfinancialstatementsauditshouldbeconducedasan
"integratedaudit."
TrueFalse

5.ThePCAOBmakesitclearthattheCEOandCFOareresponsiblefortheinternalcontroloverfinancial
reportingandthepreparationofthestatements.
TrueFalse

6.Thelikelihoodofaneventis"morethanremote"whenitis"highlypossible."
TrueFalse

7.Whenauditingapubliccompany,theauditormustformanopinionontheeffectivenessofinternalcontrol
overfinancialreporting,orissueadisclaimerintheeventofascopelimitation.
TrueFalse