1. Public company auditors test controls in order to ________.

determine their audit opinion without regard to substantive testing

support an opinion on internal controls

determine if they should be eliminated

decide if responsibility for internal control should be reassigned from management to the internal auditors

2. When fraud is discovered, _______.

the matter should immediately be referred to the internal audit function

auditors should determine the amounts involved, and then decide whether to report the fraud to management

auditors gather sufficient appropriate evidence to support their conclusion

auditors should immediately contact the Securities and Exchange Commission (SEC)