Question one $-$ Multiple Choice $-$ For each of the following questions, choose the correct answer among existing alternatives: $(6$ marks$)1.$ For financial statement audits, auditors need to understand controls that are relevant to the audit in order to:a$.-$identify and assess the risks of material misstatements.b$.$ perform preliminary analytical procedures.detect fraud.d$.$ assess inherent risk$\mathrm{.}2.$ One objective of an operational audit is to a$.$detective of an operationa cial statements fairly present the entity's operations.b$.$ determine if the auditee is in compliance with GAAP.c$.$ make recommendations for improving performance.d$.$ report on the entity's relative success in attaining profit maximization$\mathrm{.}3.$ When assessing inherent risk auditor must considera. Results of previous auditsb. Factors related to fraudulent financial reportingc. Nature of the client's businessd. All of the above$4.$ Planning of audits deals with obtaining information to help auditors assess allEXCEPT $.....$ risk:a$.$ Information Riskb. Acceptable audit riskc. Client business riskd. Risk of material misstatement$5.$ When assessing inherent risk auditor must consider:a$.$ Results of previous auditsb. Factors related to fraudulent financial reportingc. Nature of the client's businessd. All of the above$6.$ Which of the following is an accurate statement regarding the various types of other assurance services?a$.$ Assurance services must be about the reliability of another party's assertion about compliance with specified criteria.b$.$ Other assurance services must meet the definition of an attestation service.c$.$ The primary purpose of a management consulting engagement is to improve the quality of information.d$.$ The market for other forms of assurance services is open to non$-$CPA competitors.