During your audit for Ladri Company for the year 2017, you noted that significant sales were made in late December 2017. You have requested the company to provide the evidences of such sales. However, the company considers that these evidences may not be available. The effects of these sales were pervasive. In this case, the auditor would issue a (an): *

Qualified opinion

Adverse opinion

Disclaimer of opinion

Unqualified opinion

Discussing with the controller the reasons for large dollar and percentage changes in particular income statement accounts is an example of: *

Scanning

Inquiry

Analytical procedures

Inspection of tangible assets

Inherent risk and control risk: *

Are directly related to audit risk

Are directly related to detection risk

Are inversely related to detection risk

Are inversely related to each other

The risk of material misstatement differs from detection risk in that it: *

Can be assessed in quantitative and non-quantitative terms

Can be controlled and changed by the auditor

Arises because audit procedures have been misapplied

Is controllable by the client

Lukaku Manufacturing Company used to depreciate its equipment at the rate of 20%. During the current year, management decreased its equipment depreciation rate to 17% because it felt that it better represented the utilization of the assets. The auditor concurs with this decision. All information is adequately disclosed in the financial statements. In this case, the auditor would issue a (an): *

Adverse opinion

Unqualified opinion plus an explanatory paragraph

Qualified opinion

Unqualified opinion

Audit sampling is not commonly used for which type of audit evidence: *

Inspection of records and documents

Confirmation

Inspection of tangible assets

Scanning

The auditor is checking if salaries and wages cost in respect of all personnel have been fully accounted for. This is an example of testing: *

Existence

Occurrence

Valuation

Completeness

Examining invoices related to payments made after year end to determine if they were properly recorded is an example of: *

Inspection of records and documents

Inspection of tangible assets

Reperformance

Scanning

The auditor is checking if Inventory has been recognized at the lower of cost and net realizable value. This is an example of testing: *

Valuation and allocation

Accuracy

Classification

Occurrence

A new inventory management system has been installed that reduces the access of unauthorized parties. This case is related to: *

Inherent Risk

Audit Risk

Control Risk

Detection Risk