1. Even if an auditor performs extensive tests of controls and finds no control weaknesses, they still have to perform substantive tests. Why do we have such a rule?

2. Companys policy states that a purchase order of over $500,000 requires an approval from the purchasing manager. Purchase orders as well as approvals are done electronically. You are the auditor of this client. You sat down with the purchasing clerk, used her computer and created a purchase order for $501,000. You noticed that the system required a formal approval from the purchasing manager before your order could be processed. What assertion(s) did you test, explain?

3. Using MUS (monetary unit sampling) is better when testing for overstatement or understatement? Why?