Required For each statement, indicate whether you agree or disagree. Explain your reasoning. 2 a. In defending herself against a lawsuit brought by an audit client for failure to detect a material theft of cash by an employee that was covered up by falsifying the client's accounts receivable, the auditor is likely to be successful arguing that she did not owe duty to the client to detect such a well-concealed fraud. 2 b. In a situation where a client company is doing very poorly because of slow industry sales caused by an economic recession, an auditor in Canada can be expected to issue a "going concern" qualified audit opinion. 2 c. It is appropriate to use systematic sample selection in conjunction with a judgmental sampling plan, but not in conjunction with a statistical sampling plan. 2 d. Because it is normally difficult to verify the revenues and contributions receivable of not-for-profit organizations, the assurance level in audits of such organizations is lower than the assurance level provided in audits of profit-oriented businesses. e. When auditing consolidated financial statements, if the primary auditor is able to place reliance on the work of a secondary auditor who has issued an unqualified audit opinion, the primary auditor should not refer to the secondary auditor in his or her audit report. 2 f. The essential feature of a strategic systems-based audit is the development of a deep understanding of a client's internal control systems and the performance of sophisticated tests of those systems so as to obtain a highly reliable assessment of control risk for all material financial statement assertions. 2 g. Under current auditing standards, a CGA has a responsibility to detect deliberate violations of pollution control laws and regulations when auditing the financial statements of a publicly-listed manufacturing company client