1. State the characteristics of a bank confirmation letter.
2. List six examples of items requested in the bank confirmation letter
3. Explain the purpose and importance of the bank reconciliation
4. Differentiate between auditors professional judgment and professional scepticism
5. What is Audit Risk? What are the constituents of Audit Risk?

2.

1. Describe the quality of following types of evidence giving two examples of each form of evidence

1. Evidence originated by the auditor
2. Evidence created by third parties
3. Evidence created by the management of the client

2. Describe the general considerations which auditors must bear in mind when evaluating audit evidence