Question Two (20 marks, 1 mark each) 1) An assurance engagement requires the existence of an (2 words) where one party is answerable to another for the subject matter. (2 words) is the risk the auditor may express the wrong opinion. 3) (2 words) is where the plaintiff and defendant can be proven to have been negligent and each party is held responsible in proportion to their guilt. 4) (1 word) refers to an intentional act through the use of deception to obtain an unjust or illegal advantage. 5) When the required detection risk is low, the auditor utilizes a (1 word) approach towards the audit. 6) The (3 words) is a letter from the client's management to the auditor acknowledging management's responsibility for the preparation of the financial statements and details of any verbal representations made by management during the course of the audit. 7) A (1 word) auditor is one who, at the request of the group engagement team, performs work on financial information related to a component for the group audit. 81 (2 words) is the extrapolation of the errors detected when testing a sample to the populations from which the sample was drawn. 9) A (1 word) is a method for documenting internal controls which helps identify the most common controls that should be present and is useful for less experienced auditors. 10) The (2 words) refers to the attitudes, awareness, and actions of management and those charged with governance concerning the entity's internal control and its importance in the entity. This is also referred to as top-down control. 11) When a control is performed weekly and the auditor hopes to obtain reasonable assurance from testing controls, the number of times the control should be tested by the auditor is times. 12) Testing of controls is normally performed at a date if the auditor wants to rely upon controls to reduce substantive testing