25. (1 mark)

The most important reason that auditors correspond with an audit clients external lawyers during the course of an audit is:

a-To obtain audit evidence with respect to date of incorporation of their audit client

b- To obtain audit evidence concerning legal fees charged to their client

c-To satisfy requests from the audit committee

d-To obtain audit evidence concerning contingent liabilities

26. (1 mark)

If auditors discover that the total errors found during an audit exceed the audit materiality, the auditors first step should be to:

a- resign

b-request management to amend the financial statements

c-increase their fee

d-immediately amend the financial statements

27. (1 mark)

A management letter given by the auditors to management:

a-Explains the internal control strengths and weaknesses found during the audit

b-Explains the internal control weaknesses found during the audit

c-Documents the terms of the audit engagement

d-Contains the audit fee quote