15. Auditors frequently use analytical procedures as substantive tests, but this is not required by auditing standards. A) True B) False 16. Which of the following statements about the sufficiency of audit evidence is correct? A) The amount (or quantity) of evidence needed depends on the assessed risk of misstatement, the nature of the evidence being obtained, and when it is being obtained. 3) As risk of misstatement increases, more evidence is necessary. ") As the reliability of the evidence increases, less of it is necessary. D) All of the above. 17. Which of the following forms of evidence would be least reliable in forming the auditor's opinion about the existence of investments held by the company? A) Confirmation from a stockbroker regarding the nature and quantity of client's investment securities 3) The company's controller's responses to the auditor's probing questions about the existence of specific investments C) Minutes of the board of directors authorizing the purchase of specific long-term investments D) The auditor's count of marketable securities held in the company's safe 18. The auditor's receipt of a written response from a third party verifying the accuracy of information is:: A) confirmation B) corroboration C) verification D) inspection 19. To be appropriate, audit evidence should be: A) corroborated by other audit evidence B) verified by performing auditing procedures to determine its appropriateness ") relevant and reliable D) persuasive 20. The auditor obtained a detailed listing of the client's accounts receivable at the end of the year and looked through the listing to identify items that appeared unusual or unexpected. This type of auditing procedure is called: A) reading B) observing C) scanning ) disconfirming 21. Which of the following is the least objective type of evidence? A) a remittance advice from the client's customer describing the products or services that were paid for B) the physical count by the auditor of securities and cash ") the response to an inquiry of the audit client's credit manager about the collectability of notes receivable ) a signed contract describing the terms and conditions of the sale of products or services