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NEW QUESTION: 1
What are seven consecutive data points on either side of the mean called?
A. A violation of the Seven Run Rule
B. Too tight of control limits
C. Too loose of specification limits
D. Acceptable measurements
Answer: A

NEW QUESTION: 2
Which of the following statements is not true?
A. A party outside the internal audit activity should oversee assurance engagements for functions over which the chief audit executive has responsibility.
B. The chief audit executive should decline a consulting engagement if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or a part of the engagement.
C. It is inappropriate for internal auditors to provide consulting services relating to operations for which they had previous responsibilities.
D. The nature of consulting services that are performed by the internal audit activity should be defined in the audit charter.
Answer: C

NEW QUESTION: 3
An accountant who reviews the financial statements of a nonissuer should issue a report stating that a
review:
A. Provides negative assurance that the internal control structure is functioning as designed.
B. Provides only limited assurance that the financial statements are fairly presented.
C. Is substantially more in scope than a compilation.
D. Is substantially less in scope than an audit.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. An accountant who reviews the financial statements of a nonissuer should issue a
report stating that a review is substantially less in scope than an audit. (This is why you have to
"memorize" the key phrases in the review and compilation reports.)
Choice "B" is incorrect. Internal control inquiries are not part of a review, and therefore assurances related
to internal control are inappropriate.
Choice "C" is incorrect. A review does provide limited assurance as to GAAP, but this is not the
appropriate wording for the report.
Choice "D" is incorrect. Review report language compares a review with an audit, not with a compilation.