Reference no: EM132730531

Problem 1: Verbal evidence is useful for which of the following audit objectives:

A. To verify that all cash on the balance sheet is held by the client.

B. To corroborate the results of inspecting documentation.

C. To gain an understanding of the client's internal controls.

D. To corroborate the results of analytical procedures.

Problem 2: Given a desired audit risk level, an increase in the assessed level of control risk means:

A. The auditor should decrease detection risk.

B. The auditor should decrease inherent risk.

C. The auditor should increase detection risk.

D. The auditor should increase inherent risk.