If materiality increases, so will the sample size.

If the desired level of assurance increases, samplesizes can be smaller.

If materiality decreases, sample size will need to increase.

There is no relationship between sample size and materiality or the desired level of assurance.

  The risk of the auditor being sued because of association with an auditee.

The risk that the auditor will provide a "clean" opinion on financial statements that are, in fact, materially misstated

  The overall risk that a material misstatement exists in the financial statements.

The risk that auditors use audit procedures that are inappropriate.

Engage financial experts familiar with the nature of the business entity.

Obtain a knowledge of matters that relate to the nature of the entity's business.

Refer a substantial portion of the audit to another CPA, who will act as the principal auditor.

First inform management that an unqualified opinion cannot be issued.

    Identify specific internal control activities that are likely to prevent fraud.

    Evaluate the reasonableness of the company's accounting estimates.

    Evaluate the integrity of management.

Inquire of the company's attorney as to whether any unrecorded claims are probable or asserted

It is difficult to prepare financial statements that fairly present a company's financial position and changes in cash flows without the expertise of an independent auditor.

It is management's responsibility to seek available independent aid in the appraisal of the financial information shown in its financial statements

C.  The opinion of an independent party is needed because a company is not likely to be considered objective with respect to its own financial statements.

It is a customary courtesy that all stockholders of a company receive an independent report on management's stewardship in managing the affairs of the business

A management fraud may exist and it is more likely to be detected by auditors if they are independent.

Different interests may exist between the company preparing the statements and the parties using the statements

A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated

A poorly designed internal control system may be in place

To promote an adversarial relationship between the auditor and the corporation's management.

To enhance auditor independence from the management of the corporation

    To encourage a policy of rotation of the independent auditors.

To give management more leverage over the auditor's decisions

All audits involve obtaining the same eviden

    All audits involve evaluating evidence in the same manner.

    There should be a well-planned approach for obtaining and evaluating evidence.

All assertions are equally important for all audits.

Preparing a report representing a client's position during an IRS audit

Working with a company to develop a more efficient method of processing financial transactions

Offering an opinion concerning the accuracy of statements made on an entity's website relating to its online privacy policies

Assisting a company in identifying potential sources of capital for potential acquisitions.

These services are applied only to financial statements and financial statement accounts.

These services all involve obtaining and evaluating evidence

These services all involve determining the correspondence of some information to a set of criteria.

These services all involve issuing a report