Question 9

• Who is responsible for engaging the external audit firm to audit the financial statements and for giving final approval for the issuance of the financial statements?

a	The audit committee of the board of directors
b	The Securities and Exchange Commission
c	Management of the issuing company
d	The shareholders

Question 20

• The application of an audit procedure to less than 100% of the population of items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.

a	Audit sampling
b	Statistical sampling.
c	Substantive audit procedure
d	Test of controls
e	Both a & b

Question 27

• The risk that the auditor expresses an unqualified audit report on financial statements that are materially misstated.

a	Audit risk
b	Audit failure
c	Detection risk
d	Inherent risk