1. Which of the following will the assurance professional NOT do in an engagement?

a. Identify specific internal control activities that are likely to prevent errors and/or fraud.

b. Evaluate the reasonableness of the companys accounting valuations and estimates.

c. Evaluate managements business strategy and report on the effectiveness of it to the Audit Committee.

d. Confirm the companys cash balances with their financial institutions.

2. Which of the following is NOT true about Due Professional Care for assurance professionals?

a. Obtain independent, third party (non-auditee) documentation for evidence that can be reported from a valid and authorized source.

b. Only apply professional skepticism during the engagement if management integrity is questioned.

c. Apply professional skepticism to any evidence generated by the auditee during the engagement.

d. Assess errors contained in the information prepared by auditee management.

3. Which of the following elements ultimately determines the amount of audit work that is necessary in the circumstances to afford a reasonable basis for an opinion?

1. Auditor judgment.
2. Materiality
3. Relative risk
4. Reasonable assurance.