explain throughly every choice

1. Analytical procedures used in planning an audit should focus on

a. Reducing the scope of tests of controls and substantive tests.

b. Providing assurance that potential material misstatements will be identified.

c. Enhancing the auditors understanding of the clients business.

d. Assessing the adequacy of the available evidential matter.

2. The auditor should have or obtain a knowledge of the clients business sufficient to:

a. Evaluate whether the financial statements are materially misstated.

b. Document material weaknesses in accounting and internal control systems.

c. Identify and understand events, transactions and practices that may have effect on financial statements.

d. Have an overall evaluation of whether financial assertions are fairly presented in the financial statements.

3. Understanding the nature of the business and its environment, including its internal control, and using this information appropriately assists the auditor in, except

a. Help you to assign complex or difficult areas of an audit to the appropriate level of expertise, depth of experience, or extent of review is an important step in reducing the likelihood of an error.

b. Deciding whether to do substantive testing.

c. Assessing risks and identifying potential problems.

d. Planning and performing the audit effectively and efficiently.

4. Which of the following is the ultimate concern of the knowledge about the business?

a. Assists the auditor in enforcing quality control procedures.

b. Consideration of how it affects the financial statements taken as a whole.

c. To assure that sufficient audit evidence is obtained.

d. It assists in determining the type of audit report to be issued.

5. A knowledge of the business is a frame of reference within which the auditor exercises professional judgment. This assists the auditor in carrying out the following objectives, except:

a. Assessing risks and identifying problems.

b. Evaluating audit evidence.

c. Determining the audit opinion to be expressed.

d. Planning and performing the audit effectively and efficiently.