QUESTION 6 The auditor failed to collect sufficient appropriate audit evidence when verifying the sales return account, resulting in sales and net profit being significantly overstated. In a tort of negligence lawsuit, the plaintiff can use the above information to establish: O A. The auditor owed a duty of care to the client. OB. The auditor breached the duty of care. OC. The plaintiff suffered a loss, which is caused, at least in part, by the auditor's negligence. O D.A and C. OE. B and C. QUESTION 7 What is the auditor's responsibility for "other information? O A. Other information receives the same level of assurance as cash balance on the balance sheet. OB. Auditors have no responsibility to perform any procedure over other information, so no assurance is provided. C. Auditors read the other information and consider whether it is materially inconsistent with the financial report. D. The auditing standard is silent about auditors' responsibility for other information. O E. B and D. QUESTION 8 Which of the following statements is correct: O A. Auditors should send negative confirmation to the client's customers if they believe the risk of material misstatement is high for accounts receivable. B. Auditors can use observation of people's activities as the only source of audit evidence if it is performed in a discreet manner. OC if the correspondent of a positive confirmation does not respond to an auditor's request, the auditor should perform follow-up procedures. O D. Analytical procedures are only useful at the planning stage of the audit. O E. B and C