Reference no: EM132779742

Problem 1: External auditors have a duty to communicate in writing significant deficiencies in internal control to those charged with governance. Which of the following is unlikely to be relevant when determining whether a 'significant deficiency' exists?

Select one:

Option 1: The importance of controls to the financial reporting process.

Option 2: The susceptibility to loss or fraud of the related asset.

Option 3: The likelihood of deficiencies leading to material misstatements in the financial statements in the future.

Option 4: The extent of substantive procedures performed.

Problem 2: Confirmation and direct knowledge by the auditor are most associated with:

Select one:

Option 1: test of details of transactions.

Option 2: test of controls.

Option 3: analytical procedures

Option 4: tests of details of balances.