Gail, an audit partner is discussing methods of improving internal controls for an attestation client, Gator LLC. Gator has experienced some issues with incoming cash payments being intercepted by employees and has hired Gail's firm to recommend some improvements in internal control. Which of the following would be Gail's most appropriate recommendation?

		Gail should consider recommending the client adopt electronic funds transfer policies, as transfer of funds in this manner will reduce the risk associated with intercepting incoming cash payments.
		Gail should recommend to the client that moving forward, no cash or check payments should be accepted. This will alleviate the problem and improve internal controls in this area.
		Gail should consider recommending that the client deposit weekly cash remittances to their bank at least weekly, to minimize the risk associated with theft of cash.
		Gail should recommend to the client that in the future, no credit terms are extended to any clients. This will eliminate the need for incoming cash payments.

2. An audit manager and an audit staff associate are discussing the attestation engagement of a major audit client. The staff associate notes that the client has been with the external auditors for a number of years. The staff associate also notes that she would like to find a way to determine any anomalous areas from last year when compared to this year. Which of the following should the audit manager advise the staff associate to consider?

		The staff associate should devise a questionnaire for senior management, asking them to identify areas where anomalies may be present.
		The staff associate should consider employing ratio analysis in order to search for amounts that seem anomalous compared to the previous year.
		The staff associate should compare key client ratios with firms from other industries to determine areas that may represent higher inherent risk.
		None of these answer choices are correct.