CHAPTER 1: AUDITING AND INTERNAL CONTROL

1. Who expresses an opinion regarding the presentation of financial statements?

A. Certified Public Accountant C. Manager
B. Auditor D. Supervisor

2. It is the likelihood that the control structure is flawed because controls are either absent or
inadequate to prevent or detect errors in the accounts.
A. Inherent Risk C. Detection Risk
B. Control Risk D. Audit Risk

3. Is the risk that auditors are willing to take that errors not detected or prevented by the control
structure will also not be detected by the auditor.
A. Inherent Risk C. Detection Risk
B. Control Risk D. Audit Risk

4. It is an independent appraisal function established within an organization to examine and

evaluate its activities as a service to the organization.
A. Internal Auditing C. Attest Service
B. External Auditing D. Advisory Services

5. It is defined as an engagement in which a practitioner is engaged to issue, or does issue, a

written communication that expresses a conclusion about the reliability of a written assertion
that is the responsibility of another party.
A. Internal Auditing C. Attest Service
B. External Auditing D. Advisory Services