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40.  The auditor’s report for the annual audit of McA’Nulty & Sons, Inc., a U.S. publicly-traded company operating a diversified importing business, contains the following paragraph: We did not audit the financial statements of Needham Enterprises, a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 35% and 37%, respectively, of the consolidated totals.  Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Needham Enterprises, is based solely on the report of the other auditors. This portion of the auditor’s report issued for the current audit of McA’Nulty & Sons, Inc.:

40.  The auditor’s report for the annual audit of McA’Nulty & Sons, Inc., a U.S. publicly-traded company operating a diversified importing business, contains the following paragraph: We did not audit the financial statements of Needham Enterprises, a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 35% and 37%, respectively, of the consolidated totals.  Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Needham Enterprises, is based solely on the report of the other auditors. This portion of the auditor’s report issued for the current audit of McA’Nulty & Sons, Inc.:

7.  In determining the number of documents to select for a test to obtain assurance that all sales have been properly authorized, an auditor should consider the tolerable rate of deviation from the control activity.  The auditor should also consider the:      I.  Allowable risk of assessing control risk too high.     II.  Likely rate of deviation.

7.  In determining the number of documents to select for a test to obtain assurance that all sales have been properly authorized, an auditor should consider the tolerable rate of deviation from the control activity.  The auditor should also consider the:      I.  Allowable risk of assessing control risk too high.     II.  Likely rate of deviation.

15.  After obtaining an understanding of internal control and assessing the risk of material misstatement, an auditor decided to perform tests of controls.  The auditor most likely decided that

33.  As the acceptable level of detection risk increases, the assurance directly provided from:

10.  The date of the management representation letter should coincide with the date of the

3.  Which of the following statements is correct concerning probability-proportional-to-size (PPS) sampling, also known as monetary unit sampling?

50.  How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a substantive test of details?

42.  In which of the following circumstances would an auditor be most likely to express a disclaimer of opinion?