Which of the following factor(s) affect(s) the relevance of the audit evidence?

	A.	The direction of testing.
	B.	The number of observations in the sample when sampling from a population of sales transactions.
	C.	Whether the evidence is directly obtained from a third party.
	D.	A and C.
	E.	All of the above.

Which of the following statements about the audit risk model is correct?

	A.	Auditors assess the inherent risk, control risk and detection risk to estimate the audit risk, and use the audit risk to determine the level of audit evidence required.
	B.	The audit risk is the risk that auditors issue a qualified or adverse audit opinion to a financial statement that is not materially misstated.
	C.	Clients inherent risk measures to what extent the clients financial statements are susceptible to errors and fraud, and how well the client can identify and correct these errors and fraud themselves.
	D.	If a clients internal controls are effective, less audit procedures are required to achieve the same level of audit risk.
	E.	When a client has sophisticated internal controls, auditors can completely forgo collection of audit evidence.