1. The client was concerned that customers with significant balances of accounts receivable would be upset if they received letters about their balances. Accordingly, the client told the auditor NOT to send accounts receivable confirmations to customers whose balances are a material part of the accounts receivable balance. The auditor is not able to verify these balances in any other way. This would most likely result in what type of auditors report? What type of situation is involved?

a. Qualified or adverse; Accounting problem

b. Qualified or disclaimer; Accounting problem

c. Adverse or disclaimer; Accounting problem

d. Qualified or adverse; Scope problem, lack of evidence

e. Qualified or disclaimer; Scope problem, lack of evidence

f. Adverse or disclaimer; Scope problem, lack of evidence

2. It would be acceptable to send a press release [information for a newspaper article] on the results of which of the following engagements?

a. Financial Forecast

b. Financial Projection

c. CPA firms accountants Preparation of Financial

Statements.

d. Both b and c

e. None of the above.

3. As explained, [and as shown on the statistical tables] which of the following would be of most concern to auditors when dealing with statistical sampling related to a test of controls?

a. Risk of Incorrect Acceptance; or Audit Effectiveness.

b. Risk of Incorrect Acceptance; or Audit Efficiency.

c. Risk of Incorrect Rejection; or Audit Effectiveness.

d. Risk of Incorrect Rejection; or Audit Efficiency.