1- If the auditor was testing inventory pricing the audit objective being fulfilled would be:

A) completeness. B) rightsandobligations. C) existence.

D) valuation.

2- In the planning of an audit, it was decided that cash would not be audited because it comprised only 1 per cent of total assets. How would you respond to this decision?

1. A) Whether or not this was acceptable would depend on the company and the type of industry.

2. B) Inquire of the total amount of cash on hand to make a decision.

3. C) An amount of 1 per cent of total assets is likely to be immaterial.

4. D) It is likely that this amount would still be considered material, due to the nature of cash.

3- Which of these is a substantive test of details of balances used for cash balances?

A) verifying the bank reconciliation B) obtaining and using the subsequent periods bank statement C) confirming bank balances

D) all of the above