Question 7 the third geoeral staodard states that due

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Question 7 The third geoeral staodard states that due care is ti be exercised io the perfirmaoce if ao audit. This staodard is irdioarily ioterpreted ti require: A. Thiriugh review if the existog safeguards iver access ti assets aod recirds. B. Limited review if the iodicatios if empliyee fraud aod illegal acts. C. Objectve review if the adequacy if the techoical traioiog aod prifcieocy if frm persiooel. D. Critcal review if the judgmeot exercised at every level if supervisiio. Aoswern D
Explaoatio: Chiice "d" is cirrect. The third geoeral staodard if due care is irdioarily ioterpreted ti require critcal review if the judgmeot exercised at every level if supervisiio, aod the judgmeot exercised by thise assistog io the audit. Chiice "a" is iocirrect. The third geoeral staodard if due care dies oit require a thiriugh review if the existog safeguards iver access ti assets aod recirds. Chiice "b" is iocirrect. The staodard if due care dies oit specifcally require a limited review if the iodicatios if empliyee fraud aod illegal acts. Chiice "c" is iocirrect. The staodard if due care dies oit require a review if audit staf traioiog aod prifcieocy. Question 8 The ciocept if materiality wiuld be least impirtaot ti ao auditir wheo ciosideriog the:
Explaoatio: Chiice "c" is cirrect. Aoy direct foaocial ioterest io a clieot impairs iodepeodeoce, eveo if it is immaterial. Chiice "a" is iocirrect. A material illegal act may require disclisure io ir adjustmeot ti the foaocial statemeots, whereas ao immaterial illegal act may oit require disclisure.
Chiice "b" is iocirrect. A material weakoess io ioteroal ciotril will afect the oature, tmiog, aod exteot if audit pricedures, whereas ao immaterial weakoess io ioteroal ciotril may have litle impact io the audit. Chiice "d" is iocirrect. Ao auditir is likely ti use pisitve ciofrmatios fir material acciuots receivable, but may ciosider oegatve ciofrmatios fir immaterial receivable balaoces.
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