6. Who is/are responsible for creating and maintaining a culture of honesty and ethical behavior in the entity? A) Auditors B) Employees C) Management D) Shareholders 7. An auditor tests a sample of purchases entries in the voucher register to the supporting documents to support the A) completeness assertion. B) existence or occurrence assertion. C) valuation or allocation assertion. D) rights and obligations assertion. 8. Which of the following audit procedures would an auditor most likely perform with a view to determining the effectiveness of an entity's internal controls relating to the occurrence assertion for payroll transactions? A) Examine indication of authorization and observe the segregation of duties concerning personnel responsibilities and payroll disbursement. B) Inspect evidence of accounting for prenumbered payroll cheques. C) Recompute the payroll deductions for employee fringe benefits. D) Verify the preparation of the monthly payroll account bank reconciliation. 9. An auditor would with a view to achieving the audit objective of completeness for property, plant, and equipment. A) select a sample of additions to property, plant, and equipment and then examine the related vendor invoices B) select a sample of additions to property, plant, and equipment and then physically examine the asset C) physically examine a sample of assets and make sure that they are included in the property, plant, and equipment subsidiary ledger D) test depreciation expense calculations for a sample of property, plant, and equipment 10. Suppose a company's auditors find INSUFFICIENT evidence to substantiate the company's cash sales, which are material in amount. What form of qualification of the audit report would normally be appropriate in this situation? A) Qualified opinion - disagreement B) Qualified opinion - limitation of scope C) Disclaimer of opinion D) Qualified opinion-adverse opinion