Which one of the following is a NOT a method to reduce auditors' legal liability?

Select one:

a. Exercise professional scepticism.

b. Perform quality audits.

c. Include a disclaimer paragraph in the audit report.

d. Employ qualified personnel.

The auditor needs to understand the control environment (management and governance):

Select one:

a. to develop the overall audit plan.

b. to set materiality levels and assess acceptable audit risk.

c. because management's ability to identify and respond to risk affects the risk of material misstatements in the financial report.

d. all of the above.

Tests of controls are conducted when:

Select one:

a. the auditor determines that substantive testing is not effective.

b. control risk may be higher than the initial assessment.

c. controls are expected to be operating effectively.

d. controls are not operating as effectively as initially assessed.

ASAP,