1) When analyzing a client's environment for potential risk, which of the following is the auditor least likely to consider?
Client's application of accounting policies
Client's objectives and strategies
Client's methods to measure performance
Client's performance compared to competitors
2) How long must audit working papers be retained for audits of public companies?
3 years
5 years
7 years
10 years
3) In which audit procedure to gather evidence does the auditor independently perform client processes?
Inspection of records and documents
Observation of processes
Recalculation of accuracy
Reperformance of procedures
4) When analyzing a client's industry for potential risks, which of the following is the auditor least likely to consider?
Bargaining power of customers
Barriers to entry
Client share of the market
Strength of competitors