Your boss was concerned about certain controls at your large client. He commented that there was a lack of internal verification for the possibility of transactions being recorded twice. His assistants, Julien and Davidboth responded with:

1. Julien: "This is an accuracy issue."

2. David: "I believe this is a completeness issue."

Select one:

a. Both statements 1 and 2 are true

b. Only statement 1 is true

c. Neither statements 1 or 2 are true

d. Only statement 2 is true

Sula and Miriam were excited to be completing their first audit and shared the following observations:

1. Sula: "My favorite part of the audit was performing substantive tests which required me to inspect invoices for indications of approval."

2. Miriam: "I enjoyed performing a test of controls to account for the sequence of receiving reports." Based on the understanding these two candidates have of auditing, to whom would you give more responsibility?

Select one:

a. Only Miriam

b. Neither Sula nor Miriam

c. Only Sula

d. Both Sula and Miriam

The instructor was providing his students with two audit procedures he had used in his days as an auditor:

1. To test the completeness of sales (i.e., test whether shipments have been billed to customers) we looked at subsequent payments after the year end for payments for outstanding invoices.

2. The types of evidence we considered most reliable in the audit of accounts payable was a review of internal budgets for the period under audit.

a. Only statement 1 is true

b. Only statement 2 is true

c. Both statements 1 and 2 are true

d. Neither statements 1 or 2 are true.

Company ABC is a small company and it is a low risk audit. the only concern that you have is inventory which consists of very unusual items which makes it difficult to determine their value. What are you likely to do in this situation

a)increase performance materiality

b)increase overall

c)use inventory as the base for calculating materiality a

D)none of the above