34. The scope paragraph of the standard unqualified auditor's report states that ".. the standards require that we plan and perform the audit to obtainassurance about whether the financial statements are free of material misstatement." What type of assurance is giveni A) Immediate B) Limited C) Reasonable D) Absolute 35. The risk of material misstatement is composed of two components A) Audit risk and inherent risk B) inherent risk and detection risk C) inherent risk and control risk D) none of the above 36. Which of the following is true relative to James Taylor, an auditor in a CPA firm with only one office that has a client by the name of Basil Corporation A) If Taylor works on the Basil audit he may not own even one share of Basil Corporation stock B) If Taylor works on the Basil audit he can maintain his independence as long as he doesn't own a material amount of Basil Corporation stock stock, as long as he doesn't also work for Basil Corporation as an employee the Basil audit. C) If Taylor works on the Basil audit he can maintain his independence if he owns a few shares of Basi D) If Taylor is a partner of the CPA firm he may own Basil stock as long as he is not involved in any way in