The following questions relate to several of the factors that affect the auditor's general planning decisions. Select the best response. 

a. Which of the following underlies the application of generally accepted auditing standards, particularly the standards of field work and reporting? 

1. The elements of materiality and relative risk. 

2. The element of internal control structure. 

3. The element of corroborating evidence. 

4. The element of reasonable assurance. 

b. The independent auditor's plan for an audit in accordance with generally accepted auditing standards is influenced by the possibility of material errors. The auditor will therefore conduct the audit with an attitude of 

1. Professional skepticism. 

2. Subjective mistrust. 

3. Objective indifference. 

4. Professional responsiveness. 

c. With respect to errors and irregularities, which of the following should be part of an auditor's planning of the audit engagement? 

1. Plan to search for errors or irregularities that would have a material or immaterial effect on the financial statements. 

2. Plan to discover errors or irregularities that are either material or immaterial. 

3. Plan to discover errors or irregularities that are material.

4. Plan to search for errors or irregularities that would have a material effect on the financial statements.

d. An audit performed in accordance with generally accepted auditing standards generally should 

1. Be expected to provide assurance that illegal acts will be detected where control risk is minimal. 

2. Be relied upon to disclose violations of truth in lending laws. 

3. Encompass a plan to actively search for illegalities which relate to operating aspects. 

4. Not be relied upon to provide assurance that illegal acts will be detected.

e. Which of the following would not necessarily be a related-party transaction? 

1. Sales to another corporation with a similar name. 

2. Purchases from another corporation that is controlled by the corporation's chief stockholder.

3. Loan from the corporation to a major stockholder. 

4. Sale of land to the corporation by the spouse of a director.