Question #1:

Which one of the following statements regarding judgmental misstatements is correct?

a. They can arise based on the company NOT applying generally accepted accounting principles properly

b. They are the same as errors

c. They can result because of the client entering the wrong number from an invoice

d. They can arise as a result of a difference in underlying assumptions by the client and the auditor

Question #2:

Management's responsibilities for the financial statements do NOT include which one of the following?

a. making reasonable accounting estimates

b. selecting and applying appropriate accounting policies

c. establishing and maintaining internal controls

d. expressing an opinion on the financial statements