Exercising due professional care requires the auditor to: (a) Use judgement that is free from mistakes. (b) Examine all evidence that is available. (c) Critically review the work done at every level of supervision. (d) Study and review internal control and perform compliance tests to see that internal control is being adhered to. 22. An auditor's report contains the following wording. The financial statements do not present fairly the financial position, results of operations, or cash flows in conformity with generally accepted accounting principles." Thi is report was issued by the auditor most likely because the auditor feels the financial statements are: (a) Based on prospective financial information. (b) Misleading. (c) Affected by a material uncertainty. (d) Inconsistent. An audit committee would normally do all of the following except: (a) 23. Determine whether material financial fraud should be reported in a company's financial statements. Consult with the auditor prior to the audit and indicate any special concerns they may have that they want the auditor to investigate. Recommend the hiring or firing of the outside auditors. Review audit fees for reasonableness and investigate why audit fees may be higher than were originally proposed. (b) (c) (d) An auditor may not issue a qualified opinion when: (a) 24. A scope limitation prevents the auditor from performing required audit procedures. (b) The audit report refers to work performed by other auditors. (c) The company has violated GAAP in the preparation of its financial statements (d) The auditor is not independent of the client being audited