(2) Which of the following audit procedures for obtaining audit evidence is correctly described? A. Recalculation involves the auditor's independent execution of procedures or controls which were originally performed as part of the entity's internal control B. Confirmation consists of seeking information of knowledgeable persons within the company or outside the company C. Reperformance consists of checking the mathematical accuracy of documents or records D. Observation consists of looking at a procedure or process being performed by others of the following, which is the most reliable type of audit evidence? A. Confirmations mailed by outsiders to the auditors via the client. B. Copies of the sales contract held by the suppliers to demonstrate the purchase transactions of the client. C. Copies of sales invoices inspected by the auditors. D. Canceled checks returned in the year-end bank statement directly to the client. Which of the following attributes is likely to be unique to the audit work of CPA's as compared to the work performed by practitioners of other professions? A. Independence B. Competence C. Due professional care D. Complex body of knowledge. (5) Which ethical threat will be created when the client threatens to sue, or does sue, the firm for work that has been done previously? A. Self-review threat B. Intimidation threat C. Familiarity threat D. Advocacy threat (6) Which of the following situations is most likely to represent a threat to objectivity? A. The audit team eats in a subsidised staff canteen whilst they are working on the audit. B. A member of the audit team working at a biscuit manufacturer accepts a present of a tin of biscuits when he attends the company inventory counting. C. The audit engagement partner of a hotel company accepts the use of hotel rooms free of charge on a regular basis for weekend trips with his wife. D. The audit engagement partner accepts a Christmas card as a greeting each year from an audit client