1. Which is necessary in an audit (from slide 1 of planning the audit)?

a. a review

b. a compilation

c. an engagement letter

d. a review of internal control

2. The possibility that the auditors may unknowingly fail to modify appropriately their opinion on financial statements that are materially misstated is:

a. control risk

b. audit risk

c. inherent risk

d. detection risk

3. Risk of a material misstatement occurring in an assertion assuming no related internal controls.

a. control risk

b. audit riskc. inherent risk

d. detection risk

4. Risk that a material misstatement in an assertion will not be prevented or detected on a timely basis by the companys internal control (material misstatement gets through internal control).

a. control risk

b. audit risk

c. inherent risk

d. detection rick