One way of exercising judgment in the conduct of the work of an auditor is through deciding the extent of audit procedures and in assessing the reasonableness of the judgment and estimates made by the management in preparing the financial statements.Select one:TrueFalse

Reasonable conclusions of an auditor about the results of the audit being conducted is being drawn from the evidence available to the auditor.Select one:TrueFalse

Analytical procedures used in planning an audit should focus onSelect one:a.Providing assurance that potential material misstatements will be identified.b.Assessing the adequacy of the available evidential matter.c.Enhancing the auditor's understanding of the client's business.d.Reducing the scope of tests of controls and substantive tests.

Which of the following is correct statement?Select one:a.The auditor should use professional judgment to assess audit risk and to design audit procedures to ensure it is eliminated.b.The auditor is an insurer, and his or her report constitutes a guarantee.c.The subsequent discovery that a material misstatement exists in the financial statements is evidence of inadequate planning, performance, or judgment on the part of the auditor.d.The auditor should obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach.

Understanding the business and using this information appropriately assists the auditor in, exceptSelect one:a.Planning and performing the audit effectively and efficiently.b.Evaluating audit evidence.c.Assessing risks and identifying potential problemsd.Deciding whether to do tests of controls

When designing and performing audit procedures, the auditor shall consider the relevance and reliability of the information to be used as audit evidence.Select one:TrueFalse