PLEASE TYPE ANSWER, I HAVE TROUBLE READING THE HANDWRITTEN ONES.

13-32 (Objectives 13-3, 13-4) Following are several decisions that the auditor must make in an audit of a nonpublic company. Letters indicate alternative conclusions that could be made.

Decisions Alternative Conclusions

1. Determine whether it is cost effective to perform tests of controls. A. It is cost effective B. It is not cost effective

2. Perform substantive tests of details of balances. C. Perform reduced tests D. Perform expanded tests

3. Complete initial assessment of control risk. E. Controls are effective F. Controls are ineffective

4. Perform tests of controls. G. Controls are effective H. Controls are ineffective

Required 1. Identify the sequence in which the auditor should make decisions 1 to 4.

2. For the audit of the sales and collection cycle and accounts receivable, an auditor reached the following conclusions: A, D, E, H. Put the letters in the appropriate sequence and evaluate whether the auditors logic was reasonable. Explain your answer.

3. For the audit of property, plant, and equipment and related acquisition records, an auditor reached the following conclusions: A, C, F, G. Put the letters in the appropriate sequence and evaluate whether the auditor used good professional judgment. Explain your answer.

4. For the audit of payroll expenses and related liabilities, an auditor recorded the following conclusions: D, F. Put the letters in the appropriate sequence and evaluate whether the auditor used good professional judgment. Explain your answer.

5.For the audit of inventory and related inventory cost records, an auditor reached the following conclusions: B, C, E, G. Put the letters in the appropriate sequence and evaluate whether the auditor used good professional judgment. Explain your answer.

PLEASE TYPE ANSWER, I CAN'T ALWAYS READ THE HANDWRITTEN ONES