Reference no: EM132804312

Problem 1: Which of the following erroneous conclusions may result from sampling risk affecting audit efficiency?

A. In the case of a test of controls, that controls are more effective than they actually are, or in the case of a test of details, that a material misstatement does not exist when in fact it does.
B. In the case of a test of controls, that controls are less effective than they actually are, or in the case of a test of details, that a material misstatement exists when in fact it does not.
C. Both A and B.
D. Neither A nor B.

Problem 2: The audit report date is important to users because it indicates the

a. Last day of the fiscal period.
b. Last day of the auditor's responsibility for the review of significant events that occurred after
the date of the financial statements.
c. Date on which the financial statements were filed with the SEC.
d. Last day on which users may institute a lawsuit either client or auditor.