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:

	A.	The auditor owed a duty of care to the client.
	B.	The auditor breached the duty of care.
	C.	The plaintiff suffered a loss, which is caused, at least in part, by the auditors negligence.
	D.	A and C.
	E.	B and C.

Adopting the predominantly substantive strategy:

	A.	is appropriate when internal controls are effective.
	B.	Requires auditors to perform extensive testing over the clients internal controls.
	C.	Means auditors will gain the minimum necessary knowledge of the clients internal controls.
	D.	Means auditors will use an extensive amount of audit evidence to verify account balances.
	E.	C and D