Please answer the multiple choice questions, given the answer only, no explanation needed. Thanks

18. The external auditors might consider the procedures performed by the internal auditors because:

They are employees whose work must be reviewed during substantive testing.

They are employees whose work might affect the external auditors' work.

Their work impacts upon the cost/benefit tradeoff in evaluating inherent limitations.

Their degree of independence may be inferred by the nature of their work.

19. Well-designed internal control that is functioning effectively is most likely to detect a fraud arising from:

The fraudulent action of several employees.

The fraudulent action of an individual employee.

Informal deviations from the official organization chart.

Management fraud.

20. Tests of controls are most likely to be performed when:

Controls seem weak and must be properly documented.

The auditor plans to rely on the controls.

The auditor wishes to assess control risk at the maximum.

The client's control environment appears weak.

21. When performing an audit of internal control under PCAOB requirements, auditors evaluate control:

	Design Effectiveness	Operating Effectiveness
A.	Yes	Yes
B.	Yes	No
C.	No	Yes
D.	No	No

Option A

Option B

Option C

Option D

22. Which of the following is most likely to include user group development and execution of certain computer applications?

Telecommunication transmission systems.

Database administration.

End user computing.

Electronic data interchange systems.

23. General controls over IT systems are typically tested using:

Generalized audit software.

Observation, inspection, and inquiry.

Program analysis techniques.

Test data

24. Which of the following testing techniques minimizes the possibility that the auditors will contaminate a client's financial records?

Test data.

Integrated test facilities.

Controlled programs.

Tagging and tracing transactions.

25. Auditing through the computer is most likely to be used when:

Input transactions are batched and system logic is straightforward.

Processing primarily consists of sorting the input data and updating the master file sequentially.

Processing is primarily online and updating is real-time.

Outputs are in hard copy form.

26. Which of the following computer system risks would be increased by the installation of a database system?

Programming errors.

Data entry errors.

Improper data access.

Loss of power.

27. Which of the following constitutes a weakness in the internal control of a computer system?

One generation of backup files is stored in an off-premises location.

Machine operators distribute error messages to the control group.

Machine operators do not have access to the complete systems manual.

Machine operators are supervised by the programmer.

30. Which of the following is not generally used for selecting samples?

Random number tables.

Random number generators.

Physical representation numbers.

Systematic selection.

31. The auditors expect a population deviation rate of billing errors of two percent, and have established a tolerable rate of five percent. The sampling approach most likely to be used is:

Attributes sampling.

Stratified sequential sampling.

Discovery sampling.

None, as sampling does not seem appropriate in this situation.

32. The 4,000 accounts receivable of GHI Company have a total book value of $60,000. Bob Smith, CPA, has selected and audited a sample of 100 accounts with a total book value of $1,600. Using the mean-per-unit estimation technique, Smith has properly estimated a projected misstatement of a $8,000 overstatement for the entire population. The audited value of Smith's sample is:

1,300

1,400

1,600

1,800

33. During the final planning of the accounts receivable plan a CPA specified a tolerable misstatement of $30,000, instead of the $20,000 contained in the preliminary audit plan. What would be the impact of this change?

A decrease in population standard deviation.

An increase in sample standard deviation.

An increase in required sample size.

A decrease in the required sample size.

34. The tolerable deviation rate in sampling for tests of controls is:

Used to determine the probability of the auditor's conclusion based upon reliance factors.

The probability that the financial statements are not materially in error.

A measure of the reliability of substantive tests.

The rate the auditor will tolerate without modifying the planned assessment of control risk.

35. An advantage of using statistical sampling techniques is that such techniques:

Mathematically measure risk.

Eliminate the need for judgmental decisions.

Define the values of allowance for sampling risk and tolerable misstatement required to provide audit satisfaction.

Have been established in the courts to be superior to judgmental sampling.