Multiple Choice 6. following are presumptions about the effects of the source of the information on the reliability of audit evidence except: a) Audit evidence from external sources is more reliable than that obtained from the entitys records. b) Audit evidence obtained from the entitys records is more reliable when the related internal control structure operates effectively. c) Evidence obtained directly by the auditors is less reliable than evidence obtained by or from the entity. Business Administration Program Final Assessment Semester Fall 2020 Page 3 d) Evidence in the form of documents and written representations is more reliable than oral representations. 7. different auditors will not always reach identical conclusions about the quantity and quality of evidence needed to reach an opinion on financial statements is referred to: a) Professional Judgement b) Reasonable Basis c) Professional Skepticism d) Gathering Audit Evidence 8. The following are characteristics of audit sample except: a) Random b) Representative c) Protective d) Predictable 9. One of the advantages of using Monetary Unit Sampling is: a. It is affected by variability and, therefore, it is easy to determine sample size. b. It is mathematically simple and, therefore, easy to apply, especially if computer assistance is available. c. It usually enables conclusions to be drawn on the basis of large sample sizes where the auditors expect no or few errors. d. Individually material items are automatically selected for sampling. 10. The auditor should resign if: a. the organization does intend to take any form of remedial action b. the directors refuse to release accounts c. auditors are given an opportunity to communicate their concerns to members d. the directors agree to release accounts