Reference no: EM132672884

Problem 1: Which of the following is the least desirable basis of preliminary materiality?

Option 1: Pre-tax income

Option 2: Revenues

Option 3: Total assets

Option 4: Net loss

Problem 2: Which of the audit risk components is a dependent variable during the planning stage?

Option 1: Inherent risk

Option 2: Control risk

Option 3: Risk of material misstatement

Option 4: Detection risk

Problem 3: Which is more important?

Option 1: Independence in mind

Option 2: Independence in appearance

Option 3: Independence in mind and independence in appearance are equally important

Option 4: Independence in fact