Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
The purpose of an audit is to gather and evaluate evidence in order to form an opinion on the ......... of a company's financial statements.
A -
rationality
B -
realization
C -
reliability
D -
responsibility
2-
The audit ......... is usually no more than a page in length and is attached to the financial statements.
A -
report
B -
response
C -
result
D -
review
3-
Auditors are not responsible for the ......... of the financial statements of an company.
A -
evaluation
B -
examination
C -
position
D -
preparation
4-
In the financial statements, the company implicitly states that all items, account balances and transactions are ......... valid, complete and accurate.
A -
essentially
B -
generally
C -
materially
D -
precisely
5-
An error in ......... is committed when the financial statements include an item that should not be included.
A -
accuracy
B -
auditing
C -
completeness
D -
validity
6-
An error in ......... is committed when the financial statements do not include an item which should be included.
A -
accuracy
B -
auditing
C -
completeness
D -
validity
7-
An error in ......... is committed when the financial statements include incorrect information about an item that should be included.
A -
accuracy
B -
auditing
C -
completeness
D -
validity
8-
One of the principal goals of the auditor is to add ......... to this assertion.
A -
credentials
B -
credibility
C -
creditworthiness
D -
credulity
9-
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are significantly ..........
A -
misstated
B -
overstated
C -
restated
D -
understated
10-
In addition to the financial statements, the auditor also examines the company's internal ......... procedures for effectiveness.