In my last course that I just finished, these are just some of the questions that were asked of me and these are the answers (in bold) that I gave and wondered what others think? Thanks!

Auditors can be held liable to third parties for
A. fraud
B. negligence
C. both A & B
D. none of the above
The document that formalizes the contract between the client and the auditor is the
A. legal letter
B. confirmation
C. management letter
D. engagement letter

Which of the following is not true under common law?
A. an auditor must perform his services with due care
B. an auditor can be liable for breach of contract
C. the CPA is required to guarantee his product
D. the auditor can be held liable for negligence

Acts discreditable to the profession include
A. receiving an extension of time to file a tax return
B. discriminating based on race, religion, or age
C. retaining workpapers that do not contain information that is not reflected in the client’s records
D. none of the above

The AICPA Code of Professional Conduct
A. defines what is acceptable behavior for auditors
B. deals mainly with the behavior of individual auditors
C. does not apply to all members
D. both A & B

Which of the following would not prohibit the auditor from issuing an unqualified
report?
A. scope limitation
B. departure from GAAP
C. change in accounting estimate
D. lack of independence

An auditor can emphasize a matter by
A. adding an explanatory paragraph
B. issuing a disclaimer
C. issuing a qualified report
D. modifying the wording of the first paragraph of the unqualified report

The going concern assessment is made during
A. the planning stage
B. the fieldwork
C. when the report is prepared
D. a going concern assessment is not required

A contingent loss should be accrued by a charge to income if it is:
A. probable
B. reasonably estimated
C. both A & B
D. none of the above

Which of the following statements is not true?
A. The auditor generally confirms the account balance information with every bank
or financial institution that maintains an account for the client.
B. The standard bank confirmation can also be used to obtain information about
loans.
C. The bank confirmation requires a signature from an authorized individual at the financial institution.
D. The standard bank confirmation can be relied upon to identify all information
about a client’s loans.