can perform, with preapproval of which of the folowing cicumstances most ikely would cause an auditor to consider the audit committee of the board of directors which of the following non-audit services during the audit of an issuer? entity's fnancial statement? A Supporting seconds that should be readly B Human resource services C. Tax planning services D. Inteenal audit outsouncing services available are frequently not produced whern 8 Signicant deficiencles previoushy C. Clerical emors are listed on a morehly D. Differences are discovered during the requested communicated have not been cornected computer generated exceprion report. clent's annual physical inventory count 21 An Independent auditor must have which of the and well-informed point of A. A 8. C. dt Mmwith respect to the Technical training that is adequate to meet 5 Which of the following would an auditor A background in many different disciplines Experience in taxation that is sufficient to most likely use in determining the auditors preliminary judgment about materiality? A The results of the initial assessment of D. comply with generally accepted auditing standards contral risk The anticipated sample size for planned substantive tests B. 22 The Public Company Accounting Oversight Board (PCA08) is charged with all of the following responsiblities except A Establishing accounting standards for public C. The entity's fnancial statements of the prior The assertions that are embodied in the fnancial statements D. B. Establishing auditing standards C Registering accounting frms that will aude publik companies D. Inspecting accounting firms that will audit detection risk in that they A Arise from the misapplication of auditing public companies procedures nonquantitative terms statement audit B. May be assessed in either quantitative or 23 HIll CPA has been retained to audit the CExist independently of the financial financlal statements of Monday Co. Monday's predecessor auditor was Post, CPA who has been notifed by Monday that Post's services have been terminated D. Can be changed at the auditors discretion Under these circumstances which party should initiate the communications between Hil and Post? which of the folowing factors would be most ikely to helghten an auditor's concern about the risk of fraudulent financial reporting? A Hill the successor auditor B. Post, the predecessor auditor C. Monday's controler or CFO O. The chairman of Monday's board of A. B. C. D. An overly complex organizational structure Large amounts of liquid assets that are easily convertible into cash Low growth and profitability as compared directors to other engities in the same industry. Financial management's participation in the initial selection of accounting principles. involving unusual lines of authority