8. All of the following are required to have an annual audit, except: a. not-for-profit organisations. b. statutory authorities. c. small proprietary companies. d. all of the above are required to have an annual audit with no exceptions. 9. Which theory is based on the core concept of the separation of ownership and control in large organisations: a. Agency theory. b. The insurance hypothesis theory. c. The information hypothesis theory. d. An audit expectation gap. 10. The term audit expectation gap refers primarily to differences in expectations between: a. auditors and users of audited financial reports. b. auditors and their clients. c. Auditors and managers. d. Auditors and the board of directors. 11. The responsibility for the financial statements falls on the shoulders of? a. The auditor b. The members of the company C. The management of a company d. The board of directors of a company 12. The evidence an auditor collects during a financial audit is persuasive and not conclusive and as a result the auditor provides: a. Absolute assurance b. Reasonable assurance C. d. Limited assurance No assurance 13. It is not possible for the auditor to provide an absolute level of assurance because: a. The financial statements contain estimates b. The auditor must rely on management representations C. The auditor uses sampling d. All of the above 14. In most countries the financial audit is mandatory for large companies and is heavily regulated: a. True b. False 15. In a financial audit the members of a company can influence the scope and objectives of the engagement: a. True b. False