1. What are the major causes of information risk? How can information risk be reduced? (C1-2)

2. Describe and explain the differences and similarities between financial statement, compliance, and operational audits. (C1-4)

3. Explain why auditor independence is so important in conducting a financial statement audit. (RQ 1-3)

4. Distinguish among the following three risks: risk-free interest rate, business risk, and information risk. Which one or more of these does the auditor reduce by performing an audit? (RQ 1-8)

5. Explain the difference between limited assurance and reasonable assurance. (RQ 1-14)