1. When there are subjective accounting differences between the auditor and the client, and the client provides valid rationale for the differences, it is okay for the auditor to accept the rationale on face value.

   True

   False

2. The audit opinion formulation process for auditing the revenue cycle does not include:

   	a.	Risk assessment of purchases
   	b.	Test of controls
   	c.	Substantive procedures
   	d.	Analytical procedures

   Typical controls over cash include all of the following except:

   	a.	Not segregating responsibilities
   	b.	Authorization of transactions
   	c.	Random internal audits
   	d.	Training employees