Audit contract Whether or not to be appointed

o x Quiz

I. O, X (O, X 1 An auditor was not able to check whether related party transactions were consummated on terms equivalent to arm's-length transactions. 2 The prospective client is not willing to allow an auditor to send lawyer inquiry letter. 3 The details of most recorded transactions are not retrievable after a specific period of time. 4 Successor auditor is not able to review the predecessor's working paper. 5 Successor auditor is not familiar with the prospective's operations and industry. An auditor is not well informed about the client's internal auditor's audit 6 program 7 The entity has recurring operating losses. 8 The prospective client has already performed its physical inventory counting. render substantive procedures 9 Management does not allow an auditor to before balance sheet date. 10 The integrity of management is suspicious