1) In an attribute sampling setting, you have a 90 percent confidence level, expected deviation rate of 1% and a tolerable deviation rate of 4%. This results in a sample size of 96. You find 2 deviations while testing, for a sample deviation rate of 2.1%. The computed upper deviation rate is 5.3%. What do you conclude about the controls operating effectiveness?

Group of answer choices

The control is pointless and a waste of my time

The control is not operating effectively

Unable to conclude based on the information presented

The control is operating effectively

2) What is the primary purpose of obtaining written representations from management?

Group of answer choices

To impress upon management its primary responsibility for the financial statements

To allow auditors to communicate important internal control deficiencies to management

To allow auditors to communicate important suggestions for improvement to management

To provide auditors with substantive evidence of important assertions

3) Why is it the client's decision to record adjustments to the financial statements?

Group of answer choices

Having auditors adjust the financial statements would impair independence with respect to the regulator.

The financial statements are the responsibility of the client's management.

The client will ultimately suffer any losses related to misstated financial statements.

Auditors often do not have sufficient client-specific expertise to record adjustments to the financial statements.