$1.$ Consider the following statements: I. The Auditing Standards Board was created as part of the Sarbanes$-$Oxley Act. II$.$ The Audit Committee of a company$$s Board of Directors would include the Partner of the CPA firm doing the audit of the company. a$.$ I is true; II is true b$.$ I is true; II is false c$.$ I is false; II is true d$.$ I is false; II is false $2.$ Consider the following statements: I. Financial statements are based on Generally Accepted Accounting Principles. II$.$ Auditing standards issued by the PCAOB must be followed on audits of a United States company's financial Statements, if the company$$s common stock is $$publically traded$.$ a$.$ I is true; II is true b$.$ I is true; II is false c$.$ I is false; II is true d$.$ I is false; II is false $3.$ Consider the following statements: I. Clearly trivial and not material are terms that can be used interchangeably. II$.$ The lower the dollar amount of $($performance$)$ materiality the less audit evidence is required. a$.$ I is true; II is true b$.$ I is true; II is false c$.$ I is false; II is true d$.$ I is false; II is false $4.$ Consider the following statements: I. Per auditing standards, the predecessor $[$old$]$ audit firm is required to initiate communication with the successor $[$new$]$ audit firm. II$.$ The predecessor auditor might communicate, to the successor auditor, information related to client management$$s integrity. a$.$ I is true; II is true b$.$ I is true; II is false c$.$ I is false; II is true d$.$ I is false; II is false $5.$ Consider the following statements: I. Lapping involves covering a theft related to accounts receivable by using a later cash receipt to cover the previous theft. II$.$ An $$important confirmation$$ requests that customers respond whether they agree or not with the amount due to the entity stated in the confirmation. a$.$ I is true; II is true b$.$ I is true; II is false c$.$ I is false; II is true d$.$ I is false; II is false