Which of the following activities can an auditor provide to an audit client and not violate audit independence?

• A.

  Performing internal audit services provided that the client accepts its responsibility for designing, implementing, and maintaining internal control and designates an officer to manage the internal audit function.

• B.

  Authorizing, executing, or consummating transactions

• C.

  Serving as stock transfer agent, registrar, or general counsel

• D.

  Preparing source documents

Which of the following is not a procedures used to assess the risk of material misstatement, according to AU-C 315.

• A. Inquiry of management and other appropriate individuals
• B. Observation and inspection
• C. Analytical procedures
• D. Confirmations

An auditor is required to obtain an understanding of the entity's business, including business cycles and reasons for business fluctuations. Which of the following is not an area that the auditor should obtain an understanding of?

• A.

  Relevant industry, regulatory, and other external factors, including the applicable financial reporting framework.

• B.

  The measurement and review of the entity's financial performance.

• C.

  The entity's selection and application of accounting policies, including the reasons for changes thereto.

• D.

  Management's risk preferences and whether they align with shareholders.