Reference no: EM132673532

Problem 1: Which of the following is the most appropriate basis for setting the preliminary materiality for a holding company? Users only monitor the investment of this company to another profitable company.

Option 1: Pre-tax income

Option 2: Revenues

Option 3: Total assets

Option 4: Total equity

Problem 2: Which of the following is an appropriate procedure in assessing inherent risk?

Option 1: Review of client's control documentations

Option 2: Review of regulatory requirements specific to the client's business

Option 3: Review of bank reconciliation statements

Option 4: Performing predictive and confirmatory analytical procedures