1. When an auditor obtains the A/R aging and sends letters to the customers listed asking them to verify the amounts, what type of audit evidence is being obtained?

	a.	Reperformance
	b.	Confirmation
	c.	Physical Examination
	d.	Inquiry

2. A(n) _____ is a detailed instruction that specifies audit evidence to be obtained.

	a.	physical examination
	b.	audit procedure
	c.	analytical procedure
	d.	professional standard

3. An audit plan consists of a detailed list of audit procedures to be performed.

True False

4. The main purpose of gathering audit evidence is to _____.

	a.	understand the client's industry
	b.	form a conclusion
	c.	justify the expense of an audit
	d.	complete the permanent file

5. If an auditor determines that internal controls are ineffective, they will most likely take which of the following actions?

	a.	Decrease the materiality calculation.
	b.	Increase the amount of audit evidence gathered.
	c.	Decrease the amount of audit evidence gathered.
	d.	Increase the materiality calculation.