The auditor's opinion on the effectiveness of internal control would be based on which of the following:

Select one:

a. The auditor is attesting to the effectiveness of internal controls as of the beginning of the fiscal year.

b. A scope limitation requires the auditor to issues an adverse opinion.

c. Section 404 requires that the auditor design the audit to detect all deficiencies in internal control.

d. If the client remedies a material weakness before the end of the fiscal year, the auditor must issue a unqualified opinion or a disclaimer of opinion.

The following types of matters generally require disclosure in footnotes to the financial statements except for

Select one:

a. Contingency liabilities.

b. Liabilities to related parties

c. Gain contingencies

d. Commitments.

Identifying audit risk at the assertion level require

Select one:

a. both a and b

b. the auditor may decrease the sample size.

c. the auditor may choose to conduct substantive testing

d. the auditor may obtain audit evidence that is more reliable and relevant.

Auditors use analytical procedures to assess earning management techniques. If unreal revenues decreased, then this

Select one:

a. lower accounts receivable turnover.

b. increase accounts receivable turnover.

c. have no impact on the gross margin percentage.

d. understate the gross margin percentage.