Question 19 5 pts Which of the following circumstances most likely would cause an auditor to suspect that there are material misstatements in an entity's financial statements? 1. The monthly bank reconciliation ordinarily includes several large outstanding checks. 2. There are unusual discrepancies between the entity's records and confirmation replies. 3. Management enforces strict budgetary controls over the entity's departmental supervisors. 4. Cash transactions are electronically processed and recorded, leaving no paper audit trail. 0 1 O2 O 3 04 Question 20 5 pts An unmodified audit report for a publicly traded company must include: 1. a reference to PCAOB standards. 2. A reference to the engagement letter. 3. a description of an audit. 4. I and II only. 5. I and III only. O 1 O2 O 3 04 05