23. It would be acceptable to send a press release [information

for a newspaper article] on the results of which of the

following engagements?

a. Financial Forecast

b. Financial Projection

c. CPA firms accountants Preparation of Financial

Statements.

d. Both b and c

e. None of the above.

Answer ____

24. What procedure would typically NOT be performed on a Review

engagement?

a. Analytical procedures.

b. Performing a bank reconciliation.

c. Inquiry.

d. All of the above.

Answer ____

25. As explained, [and as shown on the statistical tables]

which of the following would be of most concern to

auditors when dealing with statistical sampling related

to a test of controls?

a. Risk of Incorrect Acceptance; or Audit Effectiveness.

b. Risk of Incorrect Acceptance; or Audit Efficiency.

c. Risk of Incorrect Rejection; or Audit Effectiveness.

d. Risk of Incorrect Rejection; or Audit Efficiency.

Answer ____

26. Consider the following statements:

I. There is an indirect relation between Tolerable

Deviation Rate and Sample Size.

II. A form of the sample decision rule would be:

If the Tolerable Deviation Rate is Greater than

the Computed Upper Deviation Rate,

then Controls are NOT acceptable

a. I is true; II is true

b. I is true; II is false

c. I is false; II is true

d. I is false; II is false

Answer ____

27. An auditor wishes to calculate the appropriate sample size to

use in testing controls. Based on the following parameters

and the tables provided, what sample size will be used?

Sampling risk i.e. Risk of Overreliance 5%

Expected (population) deviation rate 2%

Tolerable deviation rate 5%

Appropriate sample size would be:

a. 38 c. 78

b. 46 d. 132

e. 181 f. None of the above. The answer is ____.

Answer ____