Problem One: Choose the appropriate answer that best matches each of the following statements by entering the corresponding code letter in the table provided on page 6. 1-Which of the following is the most reliable type of evidence? a. Letter written by the client's attorney b. Physical count of securities and cash c. Inquiries of the credit manager d. Observation of cash collection process 2- Appropriateness of evidence is a measure of the: a. Quantity of evidence. b. Quality of evidence c. Sufficiency of evidence. d. Meaning of evidence. 3- Which of the following is responsible for establishing a private company's internal control? a. Senior Management. b. Internal Auditors. c. Senior Management and auditors. d. Audit committee. 4- Even with the most effectively designed internal cont the auditor must obtain audit evidence, beyond testing the controls, for every: a. Transaction. b. Financial statement account. e. Material financial statement account. d. Financial statement account that will be relied upon by third parties