QUESTION 1 Indicate and explain why you agree or disagree with each independent statement. (2 marks each, 20 marks) a. The level of assurance provided by an Audit is more than the level of assurance provided by a Review engagement. b. For audit evidence to be appropriate it must be both relevant and recalculated. c. The audit report date is usually the same as the client's fiscal year-end. d. When providing Compilation services, the practitioner must be independent in fact, but not necessarily independent in appearance. e. Sampling is routinely performed by auditors in all areas of the audit, on every audit. f. When audit sampling and considering sampling risks and errors, auditors are particularly concerned with avoiding effectiveness risk, as opposed to efficiency risk. g. General internal control considerations include segregation of incompatible duties, employee supervision and bonding of employees. h. When confirming accounts receivable balances, positive confirmations are considered more reliable than negative confirmations. i. When auditing Payroll, significant risks to consider include (but are not limited to) the presence of fictitious employees on the payroll register and over-payment of employees. j. When auditing large dollar finance and investment transactions, good controls tend to decrease the amount of substantive testing required