1. With respect to illegal acts, the auditor's responsibility is to:
   • Design the audit to provide reasonable assurance of detecting illegal acts that are material to the financial report.
   • uncover all illegal acts
   • plan the audit to search for illegal acts that could be material to the financial report
   • rely on the client's solicitor to identify illegal acts that should be disclosed

2. Earnings management includes:
   • Intentional violations of accounting standards that are individually immaterial, but have the effect of increasing profit materially in aggregate.
   • inappropriate revenue recognition
   • Big bath' charges that make poor results look even worse.
   • All of the given answers are correct

3. Which of the following is not one of the five components of internal control?
   • Corporate governance.
   • Control procedures
   • Control environment
   • Information system