QUESTION 36 In order to perform a quality audit, the external auditor has to obtain sufficient appropriate evidence, via a structured process, on which to base the auditor's opinion. O True O False QUESTION 37 Reliability is concerned with how convincing an audit evidence is. O True O False QUESTION 38 ABC Electric (ABC) entered into an agreement with AB Audit Firm (AB) for AB to perform external audit services. Both the management of ABC and AB are required to report on the state of ABC's internal controls. O True O False QUESTION 39 Fraud detection procedures are usually not an integral part of the overall audit process. O True O False QUESTION 40 The auditor can be liable for gross negligence and fraud under the common law but not liable for ordinary negligence under the same law. O True O FalseQUESTION 31 The external auditor is accountable for preventing fraud in the financial statements. O True O False QUESTION Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for the external auditor's opinion. O True O False QUESTION 33 The objectives of the preparers of financial statements are always closely aligned with that of the users of the financial statements hence the need of external auditors to provide independent assurance. O True O False QUESTION 34 Auditor competence is essential in conducting a quality audit. O True O False QUESTION 35 The detection risk is equal to the audit risk divided by the inherent and control risks. O True O False