Q1. From a general perspective, the accounting processes of a business consist of internal controls, individual transactions, and account balances. Required: A. Describe the relationship between internal controls, individual transactions, and account balances.

B. Discuss how evidence regarding each of these three areas can help an auditor determine if the financial statements are fairly stated.

Q2. Often in an audit, total combined tolerable misstatement is greater than overall materiality. Why is this the case?

Q3. For an auditor, how are management assertions useful?