14) Which of the following procedures would an auditor NOT use to assess the operating effectiveness of internal controls? A. Make inquiries of appropriate client personnel. B. Examine documents, records, and reports. C. Re-perform client procedures D. Inspect design documents. 15) Qualitative factors can affect an auditor's assessment of materiality. Which of the following statements is true? 1. Misstatements that are otherwise immaterial may be material when aggregated with other immaterial misstatements 2. Misstatements that are otherwise immaterial may be material if there are possible consequences arising from contractual obligations. A) 1 only B) 2 only ) 1 and 2 D) Neither 1 nor 2 16) A measure of the auditor's assessment of the likelihood of material misstatement in an account before considering the effectiveness of the client's internal control is called A. control risk B. acceptable audit risk C. statistical risk inherent risk 17) Which of the following statements is NOT correct? A. It is possible to vary the sample size from one unit to 100% of the items in the B. The decision about how many items to test should not be influenced by the C. The decision about how many items to test must be made by the auditor for each D. The sample size for any given procedure is likely to vary from one audit to population increased costs of performing the additional tests. audit procedure another 18) Which of the following is the MOST persuasive method for gathering evidence in an audit engagement? A Oral account of an internal control, by a client employee, given to auditor B. Photocopy of bank statement obtained from client C. Re-performance of a depreciation calculation undertaken by the audit team Inspection of a sales invoice produced by the client 19) Which of the following is the key assertion which auditors are concerned in relation to receivables? A. Existence Accuracy C. Completeness D. Disclosure