1) When external auditors are deciding on the extent to which they will rely on internal

auditors, the two most important attributes of internal auditors is that they should be

A) Willing and able.

B) Efficient and effective.

C) Competent and objective.

D) Cooperative and efficient.

2)What ultimately should determine whether analytical procedures should be used as a

substantive test?

A) GAAS requires that analytical procedures be used as substantive tests.

B) Their low cost.

C) Their ability to detect material misstatements.

D) Their ease of application.

3) An auditor performs analytical procedures as a substantive test and finds that his or

her expectation is materially different from the recorded amount. He or she should

then

A)Add the difference to the accumulated errors for the audit, and perform no

further work at this time.

B)Make inquiries of management and obtain corroborative evidence to

explain the recorded amount.

C)Threaten to qualify the audit opinion unless management adjusts the

recorded amount.

D) Withdraw from the engagement.

4)Substantive tests include all of the following except:

A) Tests of transactions.

B) Analytical procedures.

C) Walk-throughs.

D) Tests of account

5) What is the responsibility of the successor auditor with respect to communicating

with the predecessor auditor in connection with a prospective new audit client?

A)The successor auditor has no responsibility to contact the predecessor

auditor.

B)The successor auditor has no responsibility to contact the predecessor

auditor, if the prospective client has made the successor auditor aware of

all relevant information.

C)The successor auditor should obtain permission from the prospective client

to contact the predecessor auditor.

D)The successor auditor should obtain permission from the prospective

client's lawyer to contact the predecessor auditor.