1. The audit procedure test clerical accuracy by footing the journal and tracing posting to general ledger and the account payable and inventory master file is used to test the posting and summarization objective for acquisitions. True or False
2. The confirmation of account receivable is primarily aimed at the existence or occurance assertion. True or False

Which of the following best describes the reason why an external auditor reports on the financial statements?

A.Management fraud may exist, and it is more likely to be detected by the external auditors.

B.Different interests may exist between the company preparing the statements and the persons using the statements.

C.A misstatements of account balances may exist, and it is generally corrected as a result of the external auditor's work.

D.A poorly designed internal control system may exist.

Identify the auditor's responsibility in accordance with standard auditing practices.

A.The responsibility to detect errors and fraud.

B.The responsibility to discover material errors and irregularities.

C.The responsibility to inform and acknowledge management for any material errors or irregularities.

D. The responsibility to guarantees the discovery of all material errors and regularities

Which of the following is NOT a necessary component of a standard unmodified auditor's report for a public limited company?

A.A title identifying to whom the report is addressed

B.Identification of the financial statements audited

C.Confirmation of the accounting convention used in preparing the financial statements

D.Confirmation of the directors' responsibility in connection with the preparation of the financial statements