1. The auditor is required to evaluate whether there is substantial doubt about a company's ability to continue as a going concern.

   True

   False

2. Which of the following best describes the purpose for inquiring of the client's attorney?

   	a.	As a professional courtesy to the attorney.
   	b.	To determine if legal fees are correctly recorded.
   	c.	To identify contingent liabilities.
   	d.	To complete the evaluation of internal control.

3. Reviewing purchase documents on newly acquired property, plant, and equipment (PPE) is relevant audit evidence when addressing the existence assertion over PPE.

   True

   False

4. Which audit evidence is going to be most useful to an auditor assigned to audit the valuation assertion of inventory?

   	a.	Obtaining a current vendor price list.
   	b.	Discussing the supply chain with the purchasing manager.
   	c.	Observing shipping/receiving personnel receive supplier shipments.
   	d.	Reperforming the payroll calculation.

5. Which of the following is not a purpose of audit sampling?

   	a.	To identify misstatements in populations of account balances.
   	b.	To identify which assertions have the highest risk.
   	c.	To identify deviations from established controls.
   	d.	To identify misstatements in populations of transaction data.