Q3;

Evidence is generally considered appropriate when

a.

it consists of written statements made by managers of the company under audit.

b.

it has been obtained by random selection.

c.

there is enough of it to afford a reasonable basis for an opinion on financial statements.

d.

it is relevant to the audit objective being tested.

Q4:

Calculating the gross margin for the current audit year as a percent of sales and comparing it with previous years is what type of evidence?

a.

analytical procedures

b.

inquiry

c.

physical examination

d.

observation