1-

At the planning stage of an audit for a new client, the level of materiality needs to be set. Which of the following pieces of information will allow the auditor to increase the level of materiality?

The company operates in a highly competitive environment.

The company's management structure has changed during the year.

The company has a stable structure with a strong internal control environment.

The company does not have an internal audit function.

2-Which of the following would be a test of control in the audit of trade receivables?

Reviewing an aged receivables list obtained from the audit client to identify potential irrecoverable debts

A walk-through test of the sales system

Agreeing a sample of trade receivables balances to cash received after the year end

Confirming that a sample of discounts offered to credit customers have been approved