True (b) False Multiple Choice 6. following are presumptions about the effects of the source of the information on the reliability of audit evidence except: a) Audit evidence from external sources is more reliable than that obtained from the entity's records. b) Audit evidence obtained from the entity's records is more reliable when the related internal control structure operates effectively. c) Evidence obtained directly by the auditors is less reliable than evidence obtained by or from the entity d) Evidence in the form of documents and written representations is more reliable than oral representations. 7. different auditors will not always reach identical conclusions about the quantity and quality of evidence needed to reach an opinion on financial statements is referred to: a) Professional Judgement b) Reasonable Basis c) Professional Skepticism d) Gathering Audit Evidence 8. The following are characteristics of audit sample except: a) Random b) Representative c) Protective d) Predictable 9. One of the advantages of using Monetary Unit Sampling is: a. It is affected by variability and therefore, it is easy to determine sample size. b. It is mathematically simple and therefore, easy to apply, especially if computer assistance is available. c. It usually enables conclusions to be drawn on the basis of large sample sizes where the auditors expect no or few errors. d. Individually material items are automatically selected for sampling 10. The auditor should resign if