1.Under which of the following circumstances would a disclaimer of opinion be appropriate?

A) The auditor believes managements estimates of the useful lives of key assets are unreasonable, but management refuses to change the estimates.

B) Management does not provide reasonable justification for a change in accounting principles.

C) The chief executive officer is unwilling to sign the management representation letter.

D) The auditor believes, with evidence, that the chief executive officer has committed material fraud.

2.The auditor is considering the use of the clients internal auditors to assist in the audit. As a result, the auditor is evaluating the competence and objectivity of the internal auditors. Factors the auditor will consider when evaluating an internal auditors competence will include the following except:

a) The internet auditors education

b) The internal auditors professional certifications

c) The organization level to which the internal auditor reports

d) The internal auditors experience

3.When other information accompanying audited financial statements contains a material inconsistency that management refuses to revise, the auditor may do which of the following?

a) Withhold the auditors report and withdraw from the engagement

b) Include an other-matter paragraph in the report

c) Withdraw from the engagement

d) Withdraw from the engagement and include