12Which of the following is part of Phase III of the audit process?

	a.	Evaluate audit evidence.
	b.	Conduct tests of controls.
	c.	Assess the risk of material misstatement.
	d.	Identify significant inherent risks.

13An engagement letter contains express or implied terms of the contractual arrangement with the client. Which of the following is not one of those terms?

	a.	To exercise a reasonable degree of skill and care.
	b.	To report the duties of the auditor.
	c.	To be independent of the company.
	d.	To give an opinion on the truth and fairness of the financial statements of the company.

16An auditor is usually most concerned with which of the ASX Corporate Governance Council's principles?

		Safeguard integrity in financial reporting.
		Respect the rights of shareholders.
		Structure the board to add value.
		Remunerate fairly and responsibly.

17It is regarded as best practice regarding the composition of audit committees to:

		have an executive director as chairperson.
		have the internal auditor as a member.
		have the external auditor as a member.
		none of the above.

18From the following description, determine what type of auditing procedure is being conducted: the auditor found the sales invoice and then sales order for an entry made in the accounts receivable ledger.

		Inspection
		Enquiry
		Tracing
		Vouching