1.When the auditor is unable to determine the amounts associated with the illegal acts of client personnel because of an inability to obtain adequate evidence, the auditor should issue a(n) *

a.Unqualified/unmodified opinion with a separate explanatory/emphasis-of-matter paragraph

b.Qualified opinion

c.Disclaimer of opinion

d.Adverse opinion

2.The same person is the responsible of cash and receivables account. This is an example of: *

a.Audit risk

b.Inherent risk

c.Control risk

d.Detection Risk

3.Which of the following statements is not true? *

a.Inherent risk is inversely related to the amount of audit evidence whereas detection risk is directly related to the amount of audit evidence required.

b. Inherent risk is the susceptibility of the financial statements to material error, assuming no internal controls.

c. Inherent risk is directly related to evidence whereas detection risk is inversely related to the amount of audit evidence required.

d. Inherent risk and control risk are assessed by the auditor and function independently of the financial statement audit.

4.Which of the following risks is related to efficiency of testing? *

a.The risk of incorrect rejection

b.Inherent risk

c.The risk of incorrect acceptance

d.None of the above