PLEASE I DON'T WANT EXPLANATION.... JUST ANSWER

Which of these would not necessarily be considered to be a risk factor for potential misstatements?

Select one:

Profit margin has increased and inventory turnover days has decreased.

Segregation of duties is not practiced.

An employee in the cash office was passed over for a promotion.

There is intense price competition in the industry of operation.

Tests of details of transactions generally use evidence from:

Select one:

inquiry directed to top management personnel.

documents found in the entity's files.

documents obtained directly from external sources.

direct observation on the part of the auditor.

In evaluating the sample results, the planned control risk will be supported when the projected deviation rate is:

Select one:

greater than or equal to the tolerable deviation rate.

greater than or equal to the expected population deviation rate.

less than or equal to the tolerable deviation rate.

less than or equal to the expected population deviation rate.

If the sample supports the conclusion that the recorded account balance is materially misstated when it is actually not materially misstated, this is the:

Select one:

risk of incorrect rejection.

risk of incorrect acceptance.

risk of assessing control risk too low.

risk of assessing control risk too high.

Financial statements are usually prepared on the going concern basis. The auditor is required by ASA 570 (ISA 570) to assess the risk of going concern problems at which stage of the audit?

Select one:

ASA 570 (ISA 570) does not require the assessment of the risk of going concern problems, this is left to the directors.

During the final review.

The planning stage.

The planning stage and again during the final review.

The subsequent event that is an example of a condition occurring after the reporting date is:

Select one:

determining the proceeds of assets sold before the end of the reporting period.

purchase of a business.

realisation of recorded year-end receivables at a different amount than recorded.

settlement of recorded year-end estimated product warranty liabilities at a different amount than recorded.

If the auditor discovers that management intends to liquidate the entity:

Select one:

it is irrelevant if they did not intend to liquidate the entity at reporting date.

it requires inclusion as a disclaimer of opinion.

the going concern basis is inappropriate.

it requires inclusion as an 'except for' opinion.