$1)$ Auditing focuses on rules, techniques, and computations required to prepare and analyze financial information.TrueFalse$2)$ Decision makers demand reliable information that is provided by accountants and accounting information systems.TrueFalse$3)$ Auditing is a type of attest service.TrueFalse$4)$ Which of the following statements best describes a relationship between sample size and other elements of auditing?A$)$ If materiality increases, so will the sample size.B$)$ If the desired level of assurance increases, sample sizes can be smaller.C$)$ If materiality decreases, sample size will need to increase.D$)$ There is no relationship between sample size and materiality or the desired level of assurance$\mathrm{.}5)$ The basic definition of auditing essentially indicates that, overall, auditing is a process to:A$)$ detect fraud.B$)$ examine individual transactions so that the auditor may certify as to their validity.C$)$ objectively obtain and evaluate evidence regarding assertions made by another party.D$)$ assure the consistent application of correct accounting procedures$\mathrm{.}6)$ Evidence is reliable if it:A$)$ signals the true state of a management assertion.B$)$ applies to the period being audited.C$)$ relates to the audit assertion being tested.D$)$ is sufficient to justify a conclusion$\mathrm{.}7)$ Which of the following best describes the concept of audit risk?A$)$ The risk of the auditor being sued because of association with an auditee.B$)$ The risk that the auditor will provide an inappropriate opinion on financial statements that are, in fact, materially misstated.C$)$ The overall risk that a material misstatement exists in the financial statements.D$)$ The risk that auditors use audit procedures that are inappropriate.