For each item, select the appropriate fundamental principle. Some principles will be used more than once, but each item has only one principle as its answer.

- a. b. c. d. e. f. g. h. i.	Auditors' request to obtain bank statements directly from the financial institutions with whom the client does business.
- a. b. c. d. e. f. g. h. i.	Auditors' assessment of control risk and inherent risk.
- a. b. c. d. e. f. g. h. i.	Audit firms have policies with respect to the level of expected continuing professional education.
- a. b. c. d. e. f. g. h. i.	Auditor reviews the prior year audit workpapers, current industry trends, and clients unaudited current financial statements to develop the current year audit strategy.
- a. b. c. d. e. f. g. h. i.	Audit firms have policies with respect to employee ownership in audit clients.
- a. b. c. d. e. f. g. h. i.	Auditor evaluates the magnitude of an inventory misstatement to determine if the misstatement affects the users opinion.
- a. b. c. d. e. f. g. h. i.	The auditor physically examines inventory to determine the inventory exists.
- a. b. c. d. e. f. g. h. i.	An auditor asks the controller questions about the companys accounting for warranties and determines to investigate the controllers answers further.
- a. b. c. d. e. f. g. h. i.	An auditor is considering accepting a new audit client; however, the auditor and the audit firm have no experience with the potential clients industry.
- a. b. c. d. e. f. g. h. i.	The senior auditor reviews the work of the assistant auditor to provide feedback and quality control of the workpapers.

a.	Competence and capabilities
b.	Ethical requirements
c.	Professional skepticism and professional judgment
d.	Plan work and properly supervise assistants
e.	Determine/apply appropriate materiality levels throughout audit
f.	Identify/assess risks of material misstatement, including internal control.
g.	Obtain sufficient and appropriate audit evidence.
h.	Express an opinion or state an opinion cannot be expressed
i.	Opinion is based on financial statement conformity with financial reporting framework