Auditors will need to perform more substantive tests than normal to obtain sufficient appropriate evidence that a financial instrument is fairly stated if which of the following conditions exist?

A. Management is objective and transparent in their assumptions.

B. Management's key assumptions are subject to volatility.

C. The entity's portfolio is composed of only stocks issued by Fortune 100 firms traded in an active market.

D. The entity does not have control weaknesses in its valuation processes.

The primary purpose of sending a standard confirmation request to financial institutions with which the entity has done business during the year is to

A. Detect kiting activities that may otherwise not be discovered.

B. Corroborate information regarding deposit and loan balances.

C. Provide the data necessary to prepare a proof of cash.

D. Request information about contingent liabilities and secured transactions.

An unrecorded check issued during the last week of the year would most likely be discovered by the auditor when the

A. Check register for the last month is reviewed.

B. Cutoff bank statement is reconciled.

C. Bank confirmation is reviewed.

D. Search for unrecorded liabilities is performed.