1. Identify the term that each statement references. 

   Some terms are referenced more than once, some are notreferenced, and some are referenced by negative examples. 

   Enter ONLY the LETTER of the Correct Answer.

   (1 point each; 10 points total) 

   A. Reliability F. Related Parties

   B. Existence G. Specialist

   C. Completeness H. Tracing

   D. Positive Confirmation I. Inquiry

   E. Negative Confirmation J. Vouching

   1. The auditor asks one of the clients suppliers to verify the clients outstanding balance, replying only if the amount provided by the client is incorrect.

   2. The evidence suggests that an arms-length transaction, leaving the auditor to consider whether a _____________ disclosure is required.

   3. An auditors _______ may be an internal _______ or an external _________. 4. The auditor was convicted of negligence because the only internal control test used was _____. 5. ________ is considered a preferable approach for testing completeness. 6. ________ is considered a preferable approach for testing existence or occurrence. 7. Evidence is higher in ______ when it is obtained directly by the auditor, the source is independent of the client, and it consists of original documents. 8. A blank form ____________ is more likely to produce persuasive evidence. 9. Confirmations of bank accounts are not considered the best evidence of ______. 10. Our auditors, (Auditors Name), are making an examination of our Mortgage and Real Estate Division as of the close of business (date). We request that you kindly compare the information shown below with your records. Please note any differences in the space provided below, sign, and return this verification directly to (Auditors Name and Address). This is an example of a ______________.