11. In class we discussed the use of tickmarks to document work performed. It was suggested that: I. Write down the explanation of the tickmark, before it is used. II. Include a "conclusion" in the tickmark explanation. 2. b. c. I is true; II is true. I is true; II is false. I is false; II is true. d. I is false; II is false. Answer 12. Which of the following statements correctly defines the term "reasonable assurance"? a. A substantial level of assurance to allow an auditor to detect a material misstatement. b. A significant level of assurance to allow an auditor to detect a material misstatement. c. An absolute level of assurance to allow an auditor to detect a material misstatement. d. A high, but not absolute, level of assurance to allow an auditor to detect a material misstatement. Try AREA 1 Answer From Surgent CPA Review 13. Which of the following factors most likely would cause a CPA to decline to accept a new audit engagement? a. b. C. d. The CPA does not understand the entity's operations and industry. Management acknowledges that the entity has had recurring operating losses. NO C Management is unwilling to permit inquiry of its legal council. Try AREA 1 From Surgent CPA Review Answer