Q1:

When selecting staff for the audit engagement

a.

staff assigned to the audit must be knowledgeable about the client's industry.

b.

only staff members who are CPAs should be assigned to the audit.

c.

continuity of staff members from year to year should not be a factor.

d.

only managers and above need to have appropriate competence and capabilities to perform the audit.

Q2:

Which of the following forms of evidence would be least persuasive in forming the auditor's opinion about marketable securities and other investments held by the company?

a.

responses to auditor's questions by the president and controller regarding the investments account

b.

the auditor's count of marketable securities

c.

minutes of the board of directors authorizing the purchase of stock as an investment

d.

correspondence with a stockbroker regarding the quantity of client's investments held in street name by the broker