39 The preparation of financial statement of a company is the responsibility of out of O a. External auditors O b. Shareholders O c. Suppliers O d. None of the options n 40 Which of the following is the correct and most reliable audit procedure to verify that a client has the rights and obligations of ownership over its bank accounts? ed out of n a. Inspect client's year-end bank reconciliation statement O b.Selecting random pages of the cashbook and checking the totals add up O c. Reconcile the client's bank balances at the year-end as per bank statements to the corresponding cashbooks O d. Write to client's bank and request the details for the list of accounts the client claims to have and asking bank to confirm in writing direct to audit firm 40 Which of the following is the correct and most reliable audit procedure to verify that a client has the rights and obligations of ownership over its bank accounts? out of O a. Inspect client's year-end bank reconciliation statement b. Selecting random pages of the cashbook and checking the totals add up O c. Reconcile the client's bank balances at the year-end as per bank statements to the corresponding cashbooks O d. Write to client's bank and request the details for the list of accounts the client claims to have and asking bank to confirm in writing direct to audit firm 41 In order to calculate the overall audit risk, the auditors need to use the audit risk model ie, the combination of inherent risk, control risk, and detection risk. You are required to choose from the following, the type of risk that arises due to the poor internal control system of the client company. -ut of a. Financial risk O b. Business risk c. Control risk O d. Detection risk 42 is the blueprint for conducting the audit and accomplishing the audit objectives d out of a. Audit opinion O b. Audit risk O c. Audit report O d. Audit program