Question 16

Which of the following audit procedures would be least likely to disclose the existence of related party transactions of a client during the period under audit?

1) Reading "conflict-of-interest" statements obtained by the client from its management.

2) Scanning accounting records for large transactions at or just prior to the end of the period under audit.

3) Reading minutes of the Board of Directors meetings for authorization or discussion of material transactions.

4) Confirming purchases and sales transactions with the vendors and/or customers involved.

Question 20

Which of the following is not a Principle of Professional Conduct as defined by the Code of Professional Conduct?

1) Integrity.

2) Due care.

3) Reporting.

4) Scope and nature of services.