The following questions concern auditor professional responsibilities. Choose the best response. 

a. The concept of materiality would be least important to an auditor when considering the 

(1) Adequacy of disclosure of a client’s illegal act. 

(2) Effects of a direct financial interest in the client on the CPA’s independence. 

(3) Discovery of weaknesses in a client’s internal control structure. 

(4) Types of evidence to use in testing accounts receivable. 

b. According to the profession’s ethical standards, which of the following events may justify a departure from GAAP? I. New legislation II. Conflicting industry practices III. Evolution of a new form of business transaction 

(1) I and II 

(2) II and III 

(3) I and III 

(4) I, II, and III 

c. Which of the following is not a provision of the Sarbanes–Oxley Act of 2002? 

(1) The auditor of an issuer may not provide internal audit outsourcing services for the issuer. 

(2) Audit documentation must be maintained for five years. 

(3) The lead and reviewing partners must rotate off the audit after five years. 

(4) Tax services must be preapproved by the audit committee.