Why would an auditor perform a review for subsequent events?

	a.	To identify events that require adjustment to the financial statements.
	b.	To identify events that require disclosure.
	c.	The auditor is not required to review for subsequent events.
	d.	Both A and B.

An auditor has been assigned the accounts payable section of an audit. Which management assertion is the auditor most likely to focus on?

1. 	a.	Existence
   	b.	Valuation
   	c.	Rationalization
   	d.	Completeness

If a Company makes only a small amount of annual revenues from service calls, but the sample selection of revenue transactions are more than 50% service calls the auditor will likely determine

	a.	the sample is not representative.
	b.	the sample is representative.
	c.	the sample is too large.
	d.	None of the above.

An auditor is only offering an opinion of the financial statements, they are not required to read other information included in annual reports.

True

False

An auditor has been assigned the Inventory section of an audit. The inventory balance is material. What audit procedure would most likely be selected to address the existence assertion over the inventory balances?

	a.	Inquiry
	b.	Analytical Procedures
	c.	Reperformance
	d.	Physical Examination