tHe combi the company or and two that: e. auditors d auditors w o not retain audit papers for a reasonable time I not be given the documentation they asked for and will have to issue a disclaimer s refer to the combination of Inherit Risk and Control Risk as the risk of material t (RMM) a. true b. false 16. Fraud is a b. false 17. If an auditor conclu us material misstatements with significant risk or fraud they should: . attempt to obtain evidence to determine if fraud occurred and is so, its effect b. discuss the matter and approach the Board of Directors for further investigation e. if management does not eliminate material misstatements, the auditor should issue an unqualified report d. all of the above 18. Management assertions about classification of transactions focuses on a concern: a. whether transactions and events have been properly classified as sensitive or confidential b. whether all recorded transaction and events have occurred and pertain to the entity c. whether all transactions have been recorded in the correct accounting period d. whether transactions and events have been recorded in proper accounts 19. Sufficiency is the measure of the quality of audit evidence and appropriateness is the measure of the a, true b. false 20. Analytical procedures are evaluations of financial information by analysis of plausible relationships between financial and non-financial data. Three types of analytical procedures are trend, ratio and; a, quantity analysis ana c reasonableness analysis d. thorough analysis