Auditing-Chap001

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Chapter 01
The Role of the Public Accountant in the American Economy
True / False Questions
1. Independent audits of today place more emphasis on sampling than did the audits of the 19 th
century.
True False
2. The American Institute of Certified Public Accountants issues CPA certificates and permits CPAs
to practice.
True False
3. A company is either audited by the GAO or internal auditors, but not both.
True False
4. The SEC does not pass on the merits of the securities that are registered with the agency.
True False
5. The American Institute of Certified Public Accountants has the primary authority to establish
accounting standards.
True False
6. An annual peer review is a requirement of the AICPA.
True False

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