Please answer all the questions

1. During a remote session a hedging example involving the future price of apples was considered. This was used in considering the Risk Assessment Process of the COSO Internal Control Framework. Consider the following:

A speculator at an investment bank enters into an enforceable contract to sell 100,000 bushels of apples in October for $30 a bushel. The actual price of a bushel of apples in October is $45.

1. For the speculator to make a profit, the price of apples in October should go up, i.e. more than $30 per bushel.
2. As stated above the profit or loss for the speculator Would be $1,500,000.
   1. I is true; II is true.
   2. I is true; II is false.
   3. I is false; II is true.
   4. I is false; II is false.

2. Tracing shipping documents to sales invoices to see if shipped items are being billed, is what type of evidence?
   1. Analytical review
   2. Confirmation
   3. Inspection of documents
   4. Recalculation
   5. None of the above
3. 1 In observing inventory in a companys warehouse, an auditor sees five Orcs.

1. This pertains to the assertion Existence
2. This pertains to the assertion Rights and Obligations
   1. Statement I is true; Statement II is true.
   2. Statement I is true; Statement II is false.
   3. Statement I is false; Statement II is true.
   4. Statement I is false; Statement II is false.

4. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts, which typically would NOT be part of the sales cycle?
   1. Accounts Receivable
   2. Allowance for doubtful accounts
   3. Cost of goods sold
   4. Sales returns and allowances
   5. All would be part of the Sales Cycle.
5. The assertion Rights and Obligations involves
   1. Existence.
   2. Overstatement.
   3. Professional Skepticism.
   4. Understatement.