Chosse the correct answer:

1. When planning his/her audit the auditor assesses materiality at which two levels?

a.the preliminary level and the final level.

b.the company level and the divisional level.

c.the financial report level and the account balance level.

d.the account balance level and the transaction level.

2.An auditor planned to place reliance on the client's internal controls but found that they were ineffective. What audit strategy should the auditor now pursue?

a.the lower assessed level of control risk approach.

b. the predominantly substantive approach.

c. a combination of the lower assessed level of control risk approach and the predominantly substantive approach

d. he analytical procedures approach.

3.

For every audit engagement, the specific audit objectives will normally be:

a. the same for all clients in the same industry.

b. equal to the number of categories of management's financial report assertions.

c.similar for all clients in the same industry.

d.tailored to fit the individual client.

4.Which of the following audit tests would not be considered to be a substantive test?

a.Tests of controls.

b.Tests of details of balances.

c.Analytical procedures.

d.Tests of details of transactions.

4.External audit relying on the work done by internal audit is:

a. strictly prohibited by professional standards.

b. acceptable whenever a client has employed them.

c. acceptable if the auditor reviews and tests their work.

d. acceptable if the auditor re-performs all their work.