1- An auditor has identified a fraud in the financial statements. With whom can the auditor share this finding? 1. Successor auditor 2. In a subpoena 3. Internally within the audit firm, to another auditor for a different client a. It depends on the auditor and whether the fraud is material or not b. 1 and 2 c. All of them d. Only 1 2. After you conducted risk assessment procedures, and tests of controls, you have increased your assessed risk of material misstatement for your client. How will this impact your audit? a. Increase the overall materiality but reduce the tolerable misstatement b. Reduce the overall materiality but increase the tolerable misstatement c. It will not have a material impact on the materiality thresholds, butit will increase the detection risk d. Reduce the overall materiality and the tolerable misstatement