1. Planning is a continuous process that must occur throughout the audit engagement because : a) disconfirming information is likely to arise. b) the audit committee is likely to point out flaws in the original audit plan. c) all information affecting the audit occurs concurrently. d) auditor skill levels are continuously fluctuating.

2. Deliverables refers to the a) timing of the auditors acceptance of the client company. b) products and services as contracted in the engagement letter. c) degree of correlation between the audit work to the specific characteristics of the client. d) auditors experience in the clients industry.

3. When audit clients acquire new, more sophisticated IT systems, a) The audit strategy will not be impacted as long as the duties of accounting personnel are primarily unchanged. b) Auditors with advanced IT knowledge may need to be added to the audit team. c) The design of internal controls will be considered ineffective until those new controls have been tested. d) The timing of the auditors procedures for reviewing interim financial statements will be accelerated.

4. Which of the following is not a relevant consideration in deciding whether an IT specialist is needed: a) the client companys capital structure b) the complexity of IT controls and systems c) the use of emerging technologies d) the use of data by multiple systems or processes

5. The management assertion that is concerned with whether recorded transactions are real and actually happened is the: a) occurrence assertion. b) accuracy assertion. c) completeness assertion. d) cutoff assertion.