Q1) Which of the following would increase the risk of material misstatement, indicating that more evidence should be collected by the auditor?

The knowledge that the audit working papers will be reviewed by a parent company auditor from another firm

The use of audit staff who are unfamiliar with the client

The use of judgement sampling rather than statistical sampling

A client-imposed reporting deadline which is unusually soon after the year end

Q2) What is the auditor's main objective when attending the year-end physical inventory count of a client company?

To obtain evidence as to the reliability of management's procedures

To provide an independent control to ensure the accuracy of the physical count

To ensure the proper identification of obsolete inventory items

To check that all the physical counts agree with the book records of inventory