1. Which of the following risk factors can result in auditors collecting less audit evidence?

   	A.	The auditor did not detect any material misstatements from the clients financial reports in the past three financial years.
   	B.	The clients CEO receives higher compensation for meeting an ambitious profit target.
   	C.	The client is publicly listed on the Australian Stock Exchange.
   	D.	The company has increased its credit limit for new customers from $4,000 to $50,000.
   	E.	No approval is required for purchasing computers used by employees.

1 points

QUESTION 9

1. Which of the following audit procedures uses a shipping document as the sampling unit?

   	A.	Trace shipping document to the sales journal.
   	B.	Vouch purchase transactions from the purchase journal to the receiving report.
   	C.	Vouch sales transactions from the sales journal to the shipping document.
   	D.	Trace receiving report to the purchase journal.
   	E.	Vouch sales transactions from the sales journal to all source documents, including shipping documents, customer orders,s and duplicate copies of sales invoices.