Statements Answer 1. The term relates to the quantity of evidence that the auditors should obtain. 2. The amount of evidence that is considered sufficient varies with the reliability of the evidence. The risk of material misstatement is composed of two risks that the auditor assesses, those risks are inherent risk and risk. 4. Tests of controls and are referred to as "further audit procedures." The audit approach of evaluating financial statement information by a study of relationships among financial 5. and nonfinancial data is A. 6. is a type of documentary evidence transmitted directly to the auditors by a third party (e.g., a customer or a vender). In relying upon the work of a specialist, the auditors must ascertain the and reputation of the 7. specialist. A letter signed by officers of the client company at the auditors' request which sets forth certain assertions 8. about the company's financial position and operations is known as a Without regard to the effect of controls, have a reasonable possibility of containing a 9. misstatement that could cause the financial statements to be materially misstated. 10. The is a schedule listing the balances of accounts in the client's general ledger. Separate 11. working trial balance. are used to combine similar general ledger accounts into the total that appears on the ******** 3.