Exercise: Multiple choice questions. Circle the correct answeris 1. Auditor performs additional tests of the operating effectiveness of internal control system when: a) tests were performed but limited evidence was collected b) tests showed a high level of risk c) auditor couldn't access confidential files of the company due to management restrictions d) tests performed by the auditor were found to be deficient 2. Which of the following is an illegal act and has not a direct impact on the financial statements a) Securities trading violations b) Environmental protection violations c) Antitrust violations d) Revenue recognition violations under government contracts 3. Sampling risk is not a) the possibility that the items the auditor selects to examine do not represent the rest of the items in the population from which they are selected b) the possibility that the auditor will not choose enough items to test. c) the possibility that the items the auditor selects to include in the samplev