1. Accounts receivable confirmations are designed to help auditors identify unusual relationships between one or more financial statement accounts that may indicate an increased risk of material misstatement.

A. True

B. False

2. The auditor has the primary responsibility to inform third parties if subsequently discovered facts compel management to revise the financial statements in a material manner.

A. True

B. False

3. When an auditor has substantial doubt about an entity's ability to continue as a going conern for a reasonable period of time, he should issue an adverse opinion on the financial statements with an explanatory paragraph describing the going concern doubt.

A. True

B. False