1.Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting? *

a.Significant accounting estimates involving subjective judgments

b.High turnover of accounting, internal audit and information technology staff

c.Excessive pressure for management to meet debt repayment requirements

d.Management's practice of making overly aggressive forecasts

2.The training level of the accounting personnel is low. This is an example of: *

a.Detection Risk

b.Control risk

c.Audit risk

d.Inherent risk

3.Which of the following audit risk components (control risk, inherent risk, detection risk) may be assessed in non-quantitative terms? *

a.The three of them

b.Control and Inherent risks only

c.Detection risk only

d.None of risks

4.Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below which provides the auditor with the most reliable audit evidence? *

a.Internal memo explaining the issuance of a credit memo

b.Copy of month-end adjusting entries

c.Confirmation of accounts receivable balance received from a customer

d. General ledger account balances