Please identify if it is TRUE or FALSE

1. Each member of the audit committee must be a member of the board of directors and may also be independent.

2. When preparing the audit plan the auditor should be guided by the results of the risk Assessment procedures performed.

3. A major step in the decision process when auditing an account would be to develop an expectation for the amount or account balance.

4. It is up to the auditors discretion whether to develop an expectation for the account balance whenever analytical procedures are used.

5. Trend analysis, ratio analysis and reasonableness are examples of risk assessmentProcedures.