1. Which of the two types of independence does the following situation apply to?

"The auditor should not be seen as accepting valuable gifts from their audit client?"

Post-audit

In fact

Pre-audit

In appearance

1. b) If the inventory turnover ratio decreased from 8 times to 6 times in a company that has had no inventory audit issues before, which of the following could have caused it?

An unusually large sale of inventory at year-end, causing delays of inventory shipments to other customers

An increase in accounts receivable

A reduction of inventory from it normal average

A substantial increase in obsolete inventory

3.Which of the three components of the fraud triangle would lead the auditor to design procedures to investigate for fraud/defalcation, in the following situation?

"A recent change in the procedure to ship inventory to customers allows more employees than before to have access to the finished goods inventory. The company sells laptops.

Incentives/Pressures

Opportunities

Tone at the top

Attitudes and Rationalizations