Which of the following controls is least likely to be relevant to a financial statement audit?

• A. Policies that relate to compliance with pension regulations.
• B. The use of input check on sales order forms.
• C. Controls preventing sales people increasing customer credit limits.
• D. Controls requiring sales people to contact customers at least once a month.

Which is true about the factors that affect the auditors preliminary assessment of materiality?

• A. A higher materiality percentage should be assessed for public firms
• B. Clients with higher shareholder activism (i.e., have a greater likelihood of bringing lawsuits against the auditor) should have a lower materiality percentage.
• C. An auditor should only use income as a basis if it has sufficient volatility to merit being of importance
• D. The assessment of materiality should be done at the beginning of the audit and not revised at any point during the audit

Which of the following statements is correct regarding an accountants working papers?

• A. The client owns the working papers but, in the absent of the accounts consent, may not disclose them without a court order.
• B. The accountant owns the working papers and generally may disclose them as the accountant sees fit.
• C. The client owns the working papers, but the accountant has custody of them until the accountants bill is paid.
• D. The accountant owns the working papers but generally may not disclose them without the clients consent or a court order.