Please help to answer the following multiple choice question:

1

Which of the following is NOT a part of tests of control?

A. Performance

B. Inquiry

C. Inspection of physical evidence

D. Observation

2

Reperformance _______.

A. should be delegated to the internal audit function

B. is likely to be used, but would be determined by the auditors professional judgment

C. is mandatory at every client audit

D. should be the responsibility of the client's legal counsel

3

A management representation letter is a letter _______.

A. from the auditor to management acknowledging managements responsibility for the preparation of the financial statements

B. from management to the auditor acknowledging managements responsibility for the preparation of the financial statements

C. that is sent from the auditor to management, and then signed off on by the client's legal counsel

D. that is sent from management to the auditor, and then signed off on by the client's legal counsel

4

Identify three risk assessment and risk response procedures that may identify loss contingencies. (Select all that apply.)

A. Inspecting tax returns and correspondence with the IRS (Internal Revenue Service)

B. Confirming with financial institutions, including guarantees of debt

C. Threat of expropriation of assets

D. Inquiring of management regarding the completeness of recorded liabilities

5

Examples of inquiries of management regarding subsequent events include which three of the following? (Select all that apply.)

A. Are there any plans to issue new shares or debt instruments (debentures)?

B. Have competitors diversified their portfolio?

C. Has the company entered into new commitments, borrowings, or guarantees?

D, Have sales occurred or are planned that may affect the carrying value or classification of assets?

6

Which three of the following are items to consider when reviewing working papers? (Select all that apply.)

A, Consultations among team members and others within or outside of the audit firm, have taken place, as needed, and the resulting conclusions have been documented.

B. Competitors have changed their business plans.

C. Significant findings or issues have been raised for further consideration or audit testing.

D. Work has been performed in accordance with appropriate audit standards.