1. Auditors must have a detailed knowledge of regulations that apply to a clints industry. ___________________
2. Auditors are responsible for detecting illegal acts that have a material but indirect effect on financial statements. _______________
3. During the risk assessment phase, analytical procedures are used to aid in the risk identification process. ________________
4. The search for related party relationships and transactions occurs in the risk assessment phase. ______________________________
5. Transactions with related parties are prohibited if they have a direct but material effect. _______________________