1. There are three primary reasons for obtaining a thorough understanding of the client's industry and external environment. What are these reasons? What information sources are commonly used by auditors to learn about the clients industry?

2. What are six factors that affect the reliability of audit evidence?

3. Three reasons why auditors are responsible for "reasonable" but not "absolute" assurance?

4. The CPA firm normally uses defenses when there are legal claims by clients. What are defenses?

5. Explain what is professional skepticism?