5 Question 1 0.4 pts While undertaking the audit of the inventory balance, you use your audit software to extract, from the inventory master file, a report that shows those inventory items with a negative gross margin. The financial report assertion at which such a report is aimed is: A. rights and obligation. B. existence. C. cut-off. D. accuracy, valuation and allocation. 26 minutes, o Seconds Question 3 0.4 pts This is your first audit of Storm Ltd. During the initial planning you have discovered that the client lacks receiving reports and a policy as to the timing within which to record purchases. You have also observed that there are many adjusting entries to accounts payable, which is a material balance. The audit assertion most at risk when auditing accounts payable is: A. existence, B. accuracy, valuation and allocation. C. completeness. D. rights and obligations. Attempt de 30 25 minutes, 39 Question 5 0.4 pts The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such a misstatement does exist is: A. audit risk. B. detection risk. C. control risk. D. inherent risk