9. Regarding the auditors reasoning process about an account balance, the auditor should:

A. Simply state a conclusion because anything else would lead to second-guessing by another auditor or a lawyer.

B. Identify all of the elements of the reasoning process and document them in a memo

C. Assure that audit documentation, by itself, is sufficient to support the auditors opinion without an explicit description of the reasoning process; that is, the evidence can stand on its own

D. Be limited to analysis made by the partner in charge of the engagement

10. All of the following would be included in the auditors tests of controls over accounting estimates except:

A. Confirmation of the estimate with outside third parties.

B. Review of documentation to determine that the estimate is properly reviewed and authorised.

C. Review of processes used to determine if there are changes to the parameters used in the estimates, including management monitoring of the economic environment.

D. Review of processes to approve changes to the estimation process.

11. Which of the following are correct related to the auditors tests of the clients processes of monitoring controls?

I. The auditor should test monitoring only if the managements evaluation of internal control indicates that management is relying on monitoring controls.

II. Monitoring is a process to determine that other controls are working properly.

III. Monitoring substitute for a deficiency of other controls

A. I only.

B. I and II only.

C. I, II, and III.

D. II and III only

12. An advantage of using statistical sampling techniques is that such techniques:

A. Mathematically measure risk.

B. Eliminate the need for judgmental decisions.

C. Define the values of precision and reliability required to provide audit satisfaction.

D. Have been established in the courts to be superior to judgmental sampling.