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n\paperw12240\paperh18720\pard\sb0\sl-240{\bkmkstart Pg1}{\bkmkend Pg1}\par\pard
\ql \li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\sb0\sl-230\slmult0 \par\par
d\ql\li10064\sb30\sl-230\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\c
f1\f2\fs20 Page 1 of 7 \par\pard\ql \li2850\sb196\sl-368\slmult0 \up0 \expndtw0\
charscalex97 \ul0\nosupersub\cf3\f4\fs32 CPA REVIEW SCHOOL OF THE PHILIPPINES \p
ar\pard\ql \li5830\sb6\sl-230\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosuper
sub\cf4\f5\fs20 M a n i l a \par\pard\ql \li5173\sb112\sl-276\slmult0 \up0 \expn
dtw-5\charscalex100 \ul0\nosupersub\cf6\f7\fs24 AUDITING THEORY \par\pard\ql \li
3522\sb104\sl-276\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf8\f9\f
s24 Risk Assessment and Response to Assessed Risks \par\pard\ql \li1440\sb123\sl
-253\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf9\f10\fs22 Related
PSAs: \ul0\nosupersub\cf10\f11\fs22 PSA 400, 315 and 330 \par\pard\ql \li1440\sb
247\sl-253\slmult0\tx1799 \up0 \expndtw-3\charscalex100 1. \tab \up0 \expndtw-3\
charscalex100 Which of the following is correct statement? \par\pard\qj \li1799\
ri878\sb2\sl-260\slmult0\tx2159 \up0 \expndtw-3\charscalex100 a. The auditor
should use professional judgment to assess audit risk and to design a
udit \line\tab \up0 \expndtw-4\charscalex100 procedures to ensure it is eliminat
ed. \par\pard\ql \li1799\sb1\sl-235\slmult0 \up0 \expndtw-1\charscalex100 b. Th
e auditor is an insurer, and his or her report constitutes a guarantee. \par\par
d\qj \li1799\ri982\sb5\sl-260\slmult0\tx2159 \up0 \expndtw-1\charscalex100 c.
The subsequent discovery that a material misstatement exists in the financial st
atements is \line\tab \up0 \expndtw-1\charscalex100 evidence of inadequate plann
ing, performance, or judgment on the part of the auditor. \par\pard\qj \li1799\r
i982\sb0\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf11
\f12\fs22 d. The auditor should obtain an understanding of the accounting and i
nternal control systems \line\tab \up0 \expndtw-1\charscalex100 sufficient to pl
an the audit and develop an effective audit approach. \par\pard\ql \li1440\sb206
\sl-253\slmult0\tx1799 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f11\fs
22 2. \tab \up0 \expndtw-1\charscalex100 According to PSA 400 - Risk Assessments
and Internal Control, audit risk means \par\pard\ql \li1800\ri978\sb10\sl-250\s

lmult0\tx2160\tx2160 \up0 \expndtw0\charscalex100 a. The susceptibility of an a

ccount balance or class of transactions to misstatement that could \line\tab \up
0 \expndtw-1\charscalex100 be material, individually or when aggregated wi
th misstatements in other balances or \line \tab \up0 \expndtw-2\charscalex
100 classes, assuming that there were no related internal controls. \par\pard\ql
\li1800\ri978\sb8\sl-253\slmult0\tx2160\tx2160\tx2160 \up0 \expndtw0\charscalex
103 b. The risk that a misstatement, that could occur in an account
balance or class of \line\tab \up0 \expndtw-2\charscalex100 transactions and
that could be material, individually or when aggregated with misstatements \line
\tab \up0 \expndtw0\charscalex102 in other balances or classes, will not be pre
vented or detected and corrected on a timely \line \tab \up0 \expndtw0\charscale
x102 basis by the accounting and internal control systems. \par\pard\ql \li1800\
ri979\sb0\sl-260\slmult0\tx2160\tx2160 \up0 \expndtw0\charscalex100 c. The ris
k that an auditor\u8217?s substantive procedures will not detect a misstatement
that exists \line\tab \up0 \expndtw0\charscalex100 in an account balance or clas
s of transactions that could be material, individually or when \line \tab \up0 \
expndtw0\charscalex100 aggregated with misstatements in other balances or classe
s. \par\pard\qj \li1800\ri982\sb0\sl-260\slmult0\tx2160 \up0 \expndtw0\charscale
x100 \ul0\nosupersub\cf11\f12\fs22 d. The risk that the auditor gives an inappr
opriate audit opinion when the financial statements \line\tab \up0 \expndtw-1\ch
arscalex100 are materially misstated. \par\pard\ql \li1440\sb188\sl-253\slmult0\
tx1799 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f11\fs22 3. \tab \up0
\expndtw-3\charscalex100 Inherent risk and control risk differ from detection ri
sk in that they \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\charscal
ex100 a. Arise from the misapplication of auditing procedures. \par\pard\ql \li
1799\sb1\sl-237\slmult0 \up0 \expndtw-2\charscalex100 b. May be assessed in eit
her quantitative or nonquantitative terms. \par\pard\ql \li1799\sb10\sl-253\slmu
lt0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. Exist indep
endently of the financial statement audit. \par\pard\ql \li1799\sb7\sl-253\slmul
t0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf10\f11\fs22 d. Can be change
d at the auditor\u8217?s discretion. \par\pard\ql \li1440\sb227\sl-253\slmult0\t
x1799 \up0 \expndtw-3\charscalex100 4. \tab \up0 \expndtw-2\charscalex100 Inhere
nt risk and control risk differ from detection risk in that inherent risk and co
ntrol risk are \par\pard\ql \li1799\sb1\sl-237\slmult0 \up0 \expndtw-2\charscale
x100 a. Elements of audit risk while detection risk is not. \par\pard\ql \li179
9\sb10\sl-253\slmult0 \up0 \expndtw-2\charscalex100 b. Changed at the auditor\u
8217?s discretion while detection risk is not. \par\pard\ql \li1799\sb7\sl-253\s
lmult0 \up0 \expndtw-2\charscalex100 c. Considered at the individual account-b
alance level while detection risk is not. \par\pard\ql \li1799\sb1\sl-237\slmult
0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f12\fs22 d. Functions of t
he client and its environment while detection risk is not. \par\pard\ql \li1440\
sb230\sl-253\slmult0\tx1799 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f
11\fs22 5. \tab \up0 \expndtw-3\charscalex100 Which of the following is an incor
rect statement? \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-1\charscal
ex100 a. Detection risk is a function of the effectiveness of an auditing proce
dure and its application. \par\pard\qj \li1799\ri979\sb18\sl-240\slmult0\tx2159
\up0 \expndtw-1\charscalex100 b. Detection risk arises partly from uncertaintie
s that exists when the auditor does not examine \line\tab \up0 \expndtw-2\charsc
alex100 100 percent of the population. \par\pard\qj \li1799\ri982\sb4\sl-260\slm
ult0\tx2159 \up0 \expndtw-1\charscalex100 c. Detection risk arises partly beca
use of other uncertainties that exist even if the auditor were \line\tab \up0 \e
xpndtw-2\charscalex100 to examine 100 percent of the population. \par\pard\ql \l
i1799\sb1\sl-235\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f12\
fs22 d. Detection risk exists independently of the audit of the financial state
ments. \par\pard\ql \li1439\sb0\sl-253\slmult0 \par\pard\ql\li1439\sb18\sl-253\s
lmult0\tx1799 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f11\fs22 6. \ta
b \up0 \expndtw-3\charscalex100 Which of the following is an incorrect statement
? \par\pard\ql \li1799\sb1\sl-237\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nos
upersub\cf11\f12\fs22 a. Detection risk cannot be changed at the auditor\u8217?
s discretion. \par\pard\qj \li1799\ri978\sb4\sl-260\slmult0\tx2159 \up0 \expndtw

0\charscalex105 \ul0\nosupersub\cf10\f11\fs22 b. If individual audit risk remai

ns the same, detection risk bears an inverse relationship to \line\tab \up0 \exp
ndtw-3\charscalex100 inherent and control risks. \par\pard\qj \li1799\ri981\sb0\
sl-260\slmult0\tx2159 \up0 \expndtw-1\charscalex100 c. The greater the inheren
t and control risks the auditor believes exists, the less detection risk \line\t
ab \up0 \expndtw-2\charscalex100 that can be accepted. \par\pard\qj \li1799\ri97
9\sb0\sl-240\slmult0\tx2158 \up0 \expndtw0\charscalex104 d. The auditor might m
ake separate or combined assessments of inherent risk and control \line\tab \up0
\expndtw-3\charscalex100 risk. \par\pard\ql \li1439\sb247\sl-253\slmult0\tx1799
\up0 \expndtw-3\charscalex100 7. \tab \up0 \expndtw-3\charscalex100 Why would t
he auditor assess control risk? \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \ex
pndtw-2\charscalex100 a. Because it indicates where inherent risk may be the gr
eatest. \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\charscalex100 b.
Because it determines whether sampling risk is sufficiently low. \par\pard\ql
\li1806\sb1\sl-237\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f1
2\fs22 c. Because it affects the level of detection risk the auditor may accept
. \par\pard\ql \li1798\sb10\sl-253\slmult0 \up0 \expndtw-1\charscalex100 \ul0\no
supersub\cf10\f11\fs22 d. Because it includes the aspects of nonsampling risk t
hat are controllable. \par\pard\ql \li9687\sb114\sl-414\slmult0 \up0 \expndtw0\c
harscalex97 \ul0\nosupersub\cf2\f3\fs36 AT-5909
{\shp {\*\shpinst\shpleft3522\shptop2503\shpright9004\shpbottom2523\shpfhdr0\shp
bxpage\shpbypage\shpwr3\shpwrk0\shpfblwtxt1\shpz80\shplid0
{\sp{\sn shapeType}{\sv 0}}{\sp{\sn fFlipH}{\sv 0}}{\sp{\sn fFlipV}{\sv 0}}{\sp{
\sn geoRight}{\sv 5482}}{\sp{\sn geoBottom}{\sv 20}}
{\sp{\sn pVerticies}{\sv 8;4;(0,20);(5482,20);(5482,0);(0,0)}}
{\sp{\sn pSegmentInfo}{\sv 2;10;16384;45824;1;45824;1;45824;1;45824;24577;32768}
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{\sp{\sn fFillOK}{\sv 1}}{\sp{\sn fFilled}{\sv 1}}{\sp{\sn fillColor}{\sv 0}}{\s
p{\sn fLine}{\sv 0}}{\sp{\sn lineType}{\sv 0}}{\sp{\sn fArrowheadsOK}{\sv 1}}{\s
p{\sn fBehindDocument}{\sv 1}}{\sp{\sn lineColor}{\sv 0}}
}}\par\pard\sect\sectd\fs24\paperw12240\paperh18720\pard\sb0\sl-240{\bkmkstart P
g2}{\bkmkend Pg2}\par\pard\ql \li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\s
b0\sl-230\slmult0 \par\pard\ql\li10064\sb30\sl-230\slmult0 \up0 \expndtw-3\chars
calex100 \ul0\nosupersub\cf1\f2\fs20 Page 2 of 7 \par\pard\qj \li1440\sb0\sl-260
\slmult0 \par\pard\qj\li1440\ri981\sb106\sl-260\slmult0\tx1799 \up0 \expndtw0\ch
arscalex100 \ul0\nosupersub\cf10\f11\fs22 8. The relationship between acceptabl
e level of detection risk and the combined level of inherent \line\tab \up0 \exp
ndtw0\charscalex100 and control risk is \par\pard\li1440\sb11\sl-253\slmult0\fi3
59\tx4319\tx6479\tx8639 \up0 \expndtw-2\charscalex100 a. Direct\tab \up0 \expnd
tw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 b.
Inverse\tab \up0 \expndtw
-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 c.
Parallel\tab \up0 \expndtw2\charscalex100 d.
Independent\par\pard\li1440\sb230\sl-253\slmult0\fi0 \up0
\expndtw-2\charscalex100 9. The audit risk model consists of:
AR = IR x CR x
DR\par\pard\li1440\sb253\sl-253\slmult0\fi359 \up0 \expndtw-1\charscalex100 The
detection risk is the dependent variable. What is the acceptable level of det
ection risk if\par\pard\li1440\sb0\sl-253\slmult0\fi359 \up0 \expndtw-1\charscal
ex100 the assessed level of Inherent risk is High and the Control risk is Low?\p
ar\pard\li1440\sb1\sl-253\slmult0\fi359\tx4320\tx6480\tx8640 \up0 \expndtw-2\cha
rscalex100 a.
Highest\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\
f12\fs22 b.
Medium\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11
\fs22 c.
Lower\tab \up0 \expndtw-2\charscalex100 d.
Higher\par\pard\li1440
\sb252\sl-253\slmult0\fi0 \up0 \expndtw-1\charscalex100 10. An auditor decides t
o increase the assessed level of control risk from that originally planned on\pa
r\pard\li1440\sb0\sl-253\slmult0\fi360 \up0 \expndtw-1\charscalex100 the basis o
f audit evidence gathered and evaluated. To achieve an overall audit risk leve
l that\par\pard\li1440\sb0\sl-253\slmult0\fi360 \up0 \expndtw-1\charscalex100 is
substantially the same as the planned audit risk level, the auditor would\par\p
ard\li1440\sb1\sl-253\slmult0\fi360\tx6480 \up0 \expndtw-2\charscalex100 a. Dec
rease substantive testing.\tab \up0 \expndtw-2\charscalex100 c.
Increase inhe

rent risk.\par\pard\li1440\sb0\sl-253\slmult0\fi360\tx6480 \up0 \expndtw-2\chars

calex100 b. Increase materiality levels.\tab \up0 \expndtw-2\charscalex100 \ul0
\nosupersub\cf11\f12\fs22 d.
Decrease detection risk.\par\pard\li1440\sb252\s
l-253\slmult0\fi0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf10\f11\fs22 11
. As the acceptable level of detection risk decreases, the assurance directly pr
ovided from\par\pard\li1440\sb0\sl-253\slmult0\fi360\tx6480 \up0 \expndtw-2\char
scalex100 a. \ul0\nosupersub\cf11\f12\fs22 Substantive tests should increase\ul
0\nosupersub\cf10\f11\fs22 .\tab \up0 \expndtw-2\charscalex100 c. Substantive te
sts should decrease.\par\pard\li1440\sb0\sl-253\slmult0\fi360\tx6480 \up0 \expnd
tw-2\charscalex100 b. Tests of controls should increase.\tab \up0 \expndtw-2\ch
arscalex100 d. Tests of controls should decrease.\par\pard\ql \li1440\sb237\sl-2
53\slmult0 \up0 \expndtw-3\charscalex100 12. Which of the following statements i
s true? \par\pard\qj \li1800\ri977\sb2\sl-260\slmult0\tx2160 \up0 \expndtw0\char
scalex103 a. If control risk is assessed at maximum, the nature of related subs
tantive tests should be \line\tab \up0 \expndtw-3\charscalex100 changed from mor
e to less effective. \par\pard\qj \li1800\ri978\sb0\sl-260\slmult0\tx2160 \up0 \
expndtw0\charscalex103 \ul0\nosupersub\cf11\f12\fs22 b. If control risk is asse
ssed at maximum, the nature of related substantive tests should be \line\tab \up
0 \expndtw-3\charscalex100 changed from less to more effective. \par\pard\qj \li
1800\ri978\sb0\sl-240\slmult0\tx2160 \up0 \expndtw0\charscalex103 \ul0\nosupersu
b\cf10\f11\fs22 c. If control risk is assessed at maximum, the timing of relat
ed substantive tests should be \line\tab \up0 \expndtw-3\charscalex100 changed f
rom year-end to an interim date. \par\pard\qj \li1800\ri978\sb1\sl-260\slmult0\t
x2160 \up0 \expndtw0\charscalex104 d. If control risk is assessed at maximum, t
he extent of related substantive tests should be \line\tab \up0 \expndtw-3\chars
calex100 changed from a larger to a smaller sample. \par\pard\ql \li1440\ri978\s
b249\sl-250\slmult0\tx1799\tx1799 \up0 \expndtw0\charscalex100 13. When the audi
tor determines that detection risk regarding a financial statement assertion for
a \line\tab \up0 \expndtw-1\charscalex100 material account balance or class of
transactions cannot be reduced to an acceptable level, the \line \tab \up0 \expn
dtw-2\charscalex100 auditor should express \par\pard\li1799\sb13\sl-253\slmult0\
fi0\tx5759 \up0 \expndtw-4\charscalex100 a.
Qualified or adverse opinion\tab
\up0 \expndtw-4\charscalex100 c.
Unqualified opinion with explanatory paragra
ph\par\pard\li1799\sb0\sl-253\slmult0\fi0\tx5759 \up0 \expndtw-4\charscalex100 \
ul0\nosupersub\cf11\f12\fs22 b.
Qualified or disclaimer of opinion\tab \up0 \
expndtw-4\charscalex100 \ul0\nosupersub\cf10\f11\fs22 d.
Unqualified opinion.
\par\pard\ql \li1440\sb249\sl-253\slmult0 \up0 \expndtw-2\charscalex100 14. Whic
h of the following is not a distinguishing feature of risk-based auditing? \par\
pard\ql \li1799\sb1\sl-237\slmult0 \up0 \expndtw-1\charscalex100 a. Identifying
areas posing the highest risk of financial statement errors. \par\pard\ql \li17
99\sb10\sl-253\slmult0 \up0 \expndtw-1\charscalex100 b. Analysis of internal co
ntrol. \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\charscalex100 \ul
0\nosupersub\cf11\f12\fs22 c. Collecting and evaluating evidence. \par\pard\qj
\li1799\ri981\sb0\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosup
ersub\cf10\f11\fs22 d. Concentrating audit resources in those areas prese
nting the highest risk of financial \line\tab \up0 \expndtw-1\charscalex100
statement errors. \par\pard\ql \li1439\sb228\sl-253\slmult0 \up0 \expndtw-2\cha
rscalex100 15. Which of the following factors is not a good indicator of potenti
al financial failure? \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\ch
arscalex100 a. Client is constantly short of cash and working capital. \par\par
d\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf
11\f12\fs22 b. Client\u8217?s retained earnings were reduced by half as a resul
t of a large dividend payout. \par\pard\qj \li1799\ri1689\sb0\sl-260\slmult0\tx2
159 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 c. Client reli
es heavily on debt financing, especially by financing permanent assets with \lin
e\tab \up0 \expndtw-3\charscalex100 short-term loans. \par\pard\ql \li1799\sb1\s
l-238\slmult0 \up0 \expndtw-2\charscalex100 d. Client has had increasing net lo
sses for several years. \par\pard\ql \li1439\sb0\sl-253\slmult0 \par\pard\ql\li1
439\sb237\sl-253\slmult0 \up0 \expndtw0\charscalex105 PSA 315 - Understandin
g the Entity and Its Environment and Assessing the Risks of \par\pard\

ql \li2879\sb7\sl-253\slmult0 \up0 \expndtw-3\charscalex100 Material Misstatemen

t \par\pard\ql \li1440\sb187\sl-253\slmult0 \up0 \expndtw-3\charscalex100 16. PS
A 315 requires \par\pard\qj \li1799\ri951\sb18\sl-240\slmult0\tx2159 \up0 \expnd
tw-2\charscalex100 a. The auditor to obtain an understanding of the ent
ity and its environment, including its \line\tab \up0 \expndtw-3\charscalex
100 internal control. \par\pard\qj \li1799\ri980\sb4\sl-260\slmult0\tx2159 \up0
\expndtw0\charscalex103 b. Discussion among the engagement team about the susce
ptibility of the entity\u8217?s financial \line\tab \up0 \expndtw-3\charscalex10
0 statements to material misstatement. \par\pard\qj \li1799\ri980\sb0\sl-260\slm
ult0\tx2159 \up0 \expndtw-1\charscalex100 c. The auditor to identify and
assess the risks of material misstatement at the financial \line\tab \up
0 \expndtw-2\charscalex100 statement and assertion levels. \par\pard\ql \li1799\
sb1\sl-211\slmult0 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf11\f12\fs22 d.
All of the above. \par\pard\ql \li9687\sb0\sl-414\slmult0 \par\pard\ql\li9687\
sb268\sl-414\slmult0 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf2\f3\fs36 AT5909
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}}\par\pard\sect\sectd\fs24\paperw12240\paperh18720\pard\sb0\sl-240{\bkmkstart P
g3}{\bkmkend Pg3}\par\pard\ql \li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\s
b0\sl-230\slmult0 \par\pard\ql\li10064\sb30\sl-230\slmult0 \up0 \expndtw-3\chars
calex100 \ul0\nosupersub\cf1\f2\fs20 Page 3 of 7 \par\pard\ql \li1440\sb191\sl-2
53\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f11\fs22 17. Which
of the following is incorrect regarding PSA 315? \par\pard\ql \li1799\ri981\sb1
0\sl-250\slmult0\tx2159\tx2159 \up0 \expndtw0\charscalex100 a. The purpose of t
his PSA is to establish standards and to provide guidance on obtaining an \line\
tab \up0 \expndtw-1\charscalex100 understanding of the entity and its envi
ronment, including its internal control, and on \line \tab \up0 \expndtw-1
\charscalex100 assessing the risks of material misstatement in a financial state
ment audit. \par\pard\ql \li1799\ri979\sb10\sl-250\slmult0\tx2159\tx2159 \up0 \e
xpndtw0\charscalex105 b. This PSA requires the auditor to make risk assessments
at the financial statement and \line\tab \up0 \expndtw0\charscalex100 assertion
levels based on an appropriate understanding of the entity and its environment,
\line \tab \up0 \expndtw0\charscalex100 including its internal control. \par\pa
rd\qj \li1799\ri891\sb2\sl-260\slmult0\tx2159 \up0 \expndtw-3\charscalex100 c.
The requirements and guidance of this PSA are to be applied in conj
unction with the \line\tab \up0 \expndtw-4\charscalex100 requirements and guid
ance provided in other PSAs. \par\pard\ql \li1799\ri982\sb0\sl-250\slmult0\tx215
9\tx2159 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f12\fs22 d. This P
SA discusses the auditor\u8217?s responsibility to determine overall res
ponses and to \line\tab \up0 \expndtw0\charscalex102 design and perform fur
ther audit procedures whose nature, timing, and extent are \line \tab \u
p0 \expndtw0\charscalex102 responsive to the risk assessments. \par\pard\qj \li1
440\ri980\sb171\sl-260\slmult0\tx1799 \up0 \expndtw0\charscalex100 \ul0\nosupers
ub\cf10\f11\fs22 18. Which statement is incorrect regarding obtaining an
understanding of the entity and its \line\tab \up0 \expndtw-1\charscalex100
environment? \par\pard\qj \li1799\ri890\sb17\sl-240\slmult0\tx2159 \up0 \expndt
w-3\charscalex100 a. Obtaining an understanding of the entity and its e
nvironment is an essential aspect of \line\tab \up0 \expndtw-4\charscalex10
0 performing an audit in accordance with PSAs. \par\pard\ql \li1799\ri980\sb12\s
l-250\slmult0\tx2160\tx2160 \up0 \expndtw0\charscalex105 b. That understanding

establishes a frame of reference within which the auditor plans the \line\tab \u
p0 \expndtw0\charscalex100 audit and exercises professional judgment about asses
sing risks of material misstatement \line \tab \up0 \expndtw0\charscalex100 of t
he financial statements and responding to those risks throughout the audit. \par
\pard\ql \li1800\ri977\sb10\sl-250\slmult0\tx2160\tx2160 \up0 \expndtw-1\charsca
lex100 c. The auditor\u8217?s primary consideration is whether the understandi
ng that has been obtained is \line\tab \up0 \expndtw0\charscalex103 sufficient t
o assess the risks of material misstatement of the financial statements and to \
line \tab \up0 \expndtw-3\charscalex100 design and perform further audit procedu
res. \par\pard\qj \li1799\ri980\sb19\sl-240\slmult0\tx2159 \up0 \expndtw-1\chars
calex100 \ul0\nosupersub\cf11\f12\fs22 d. The depth of the overall understandin
g that is required by the auditor in performing the audit \line\tab \up0 \expndt
w-2\charscalex100 is equal to that possessed by management in managing the entit
y. \par\pard\ql \li1440\sb190\sl-253\slmult0 \up0 \expndtw-3\charscalex100 \ul0\
nosupersub\cf10\f11\fs22 19. The main purpose of risk assessment procedures is t
o \par\pard\qj \li1799\ri981\sb2\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex
102 \ul0\nosupersub\cf11\f12\fs22 a. Obtain an understanding of the entity and
its environment, including its internal control, to \line\tab \up0 \expndtw0\cha
rscalex102 assess the risks of material misstatement at the financial statement
and assertion levels. \par\pard\qj \li1799\ri981\sb0\sl-260\slmult0\tx2159 \up0
\expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 b. Test the operating
effectiveness of controls in preventing, or detecting and correcting, \
line\tab \up0 \expndtw-3\charscalex100 material misstatements at the assertion l
evel. \par\pard\ql \li1799\sb1\sl-235\slmult0 \up0 \expndtw-2\charscalex100 c.
Detect material misstatements at the assertion level. \par\pard\ql \li1799\sb5\
sl-236\slmult0 \up0 \expndtw0\charscalex100 d. All of the above. \par\pard\qj \
li1440\ri979\sb185\sl-260\slmult0\tx1799 \up0 \expndtw0\charscalex106 20. The a
uditor should perform the following risk assessment procedures to obtai
n an \line\tab \up0 \expndtw-2\charscalex100 understanding of the entity and it
s environment, including its internal control, except: \par\pard\ql \li1799\sb1\
sl-235\slmult0 \up0 \expndtw-2\charscalex100 a. Inquiries of management and oth
ers within the entity. \par\pard\qj \li1799\ri982\sb5\sl-260\slmult0\tx2159 \up0
\expndtw0\charscalex105 \ul0\nosupersub\cf11\f12\fs22 b. Inquiries of the enti
ty\u8217?s external legal counsel or of valuation experts that the entity has \l
ine\tab \up0 \expndtw-3\charscalex100 used. \par\pard\ql \li1799\sb1\sl-235\slmu
lt0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 c. Analytical
procedures. \par\pard\ql \li1799\sb11\sl-253\slmult0 \up0 \expndtw-1\charscalex1
00 d. Observation and inspection. \par\pard\ql \li1440\sb207\sl-253\slmult0 \up
0 \expndtw-2\charscalex100 21. Inquiries directed towards those charged with gov
ernance may most likely \par\pard\ql \li1799\ri978\sb10\sl-250\slmult0\tx2159\tx
2159 \up0 \expndtw0\charscalex105 a. Relate to their activities concerning the
design and effectiveness of the entity\u8217?s internal \line\tab \up0 \expndtw0
\charscalex100 control and whether management has satisfactorily responded to an
y findings from these \line \tab \up0 \expndtw0\charscalex100 activities. \par\p
ard\qj \li1799\ri979\sb19\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex102 \ul
0\nosupersub\cf11\f12\fs22 b. Help the auditor understand the environment
in which the financial statements are \line\tab \up0 \expndtw0\charscalex1
02 prepared. \par\pard\qj \li1799\ri979\sb20\sl-240\slmult0\tx2159 \up0 \expndtw
0\charscalex102 \ul0\nosupersub\cf10\f11\fs22 c. Relate to changes in the
entity\u8217?s marketing strategies, sales trends, or contractual \line\t
ab \up0 \expndtw0\charscalex102 arrangements with its customers. \par\pard\qj \l
i1799\ri981\sb4\sl-260\slmult0\tx2159 \up0 \expndtw-1\charscalex100 d. Help the
auditor in evaluating the appropriateness of the selection and application of c
ertain \line\tab \up0 \expndtw-2\charscalex100 accounting policies. \par\pard\ql
\li1440\sb206\sl-253\slmult0 \up0 \expndtw-3\charscalex100 22. Which statement
is incorrect regarding analytical procedures? \par\pard\ql \li1799\ri848\sb0\sl260\slmult0\tx2159\tx2159 \up0 \expndtw0\charscalex100 a. Analytical procedures
may be helpful in identifying the existence of unusual transactions or \line\ta
b \up0 \expndtw-3\charscalex100 events, and amounts, ratios, and trends th
at might indicate matters that have financial \line \tab \up0 \expndtw-4\c

harscalex100 statement and audit implications. \par\pard\qj \li1799\ri979\sb0\sl

-260\slmult0\tx2159 \up0 \expndtw0\charscalex102 b. In performing analytical pr
ocedures as risk assessment procedures, the auditor develops \line\tab \up0 \exp
ndtw0\charscalex102 expectations about plausible relationships that are reasonab
ly expected to exist. \par\pard\ql \li1799\ri980\sb0\sl-250\slmult0\tx2159\tx215
9 \up0 \expndtw0\charscalex100 c. When comparison of those expectations with r
ecorded amounts or ratios developed from \line\tab \up0 \expndtw0\charscalex100
recorded amounts yields unusual or unexpected relationships, the auditor conside
rs those \line \tab \up0 \expndtw-1\charscalex100 results in identifying risks o
f material misstatement. \par\pard\ql \li1799\ri978\sb0\sl-250\slmult0\tx2159\tx
2159 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf11\f12\fs22 d. When such an
alytical procedures use data aggregated at a high level (which is often the \lin
e\tab \up0 \expndtw0\charscalex103 situation), the results of those analytical p
rocedures provide a clear-cut indication about \line \tab \up0 \expndtw-3\charsc
alex100 whether a material misstatement may exist. \par\pard\ql \li9687\sb276\sl
-414\slmult0 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf2\f3\fs36 AT-5909 \pa
r\pard\sect\sectd\fs24\paperw12240\paperh18720\pard\sb0\sl-240{\bkmkstart Pg4}{\
bkmkend Pg4}\par\pard\ql \li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\sb0\sl
-230\slmult0 \par\pard\ql\li10064\sb30\sl-230\slmult0 \up0 \expndtw-3\charscalex
100 \ul0\nosupersub\cf1\f2\fs20 Page 4 of 7 \par\pard\qj \li1440\ri979\sb186\sl260\slmult0\tx1799 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f11\fs22 23
. Which statement is incorrect regarding the discussion among the engagement tea
m about the \line\tab \up0 \expndtw0\charscalex100 susceptibility of the entity\
u8217?s financial statements to material misstatements? \par\pard\qj \li1799\ri9
03\sb17\sl-240\slmult0\tx2159 \up0 \expndtw-3\charscalex100 a. The members of
the engagement team should discuss the susceptibility of the entity\u
8217?s \line\tab \up0 \expndtw-3\charscalex100 financial statements to material
misstatements. \par\pard\ql \li1799\ri979\sb10\sl-253\slmult0\tx2159\tx2159\tx21
59 \up0 \expndtw0\charscalex103 b. The objective of this discussion is for memb
ers of the engagement team to gain a better \line\tab \up0 \expndtw0\charscalex1
00 understanding of the potential for material misstatements of the fin
ancial statements \line \tab \up0 \expndtw0\charscalex100 resulting from fraud
or error in the specific areas assigned to them, and to understand how \line \ta
b \up0 \expndtw0\charscalex100 the results of the audit procedures that they per
form may affect other aspects of the audit. \par\pard\ql \li1799\ri982\sb10\sl-2
50\slmult0\tx2159\tx2159 \up0 \expndtw-1\charscalex100 c. The discussion provi
des an opportunity for more experienced engagement team members, \line\tab \up0
\expndtw0\charscalex100 including the engagement partner, to share their insight
s based on their knowledge of the \line \tab \up0 \expndtw0\charscalex100 entity
, and for the team members to exchange information about the business risks. \pa
r\pard\ql \li1799\sb0\sl-239\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupers
ub\cf11\f12\fs22 d. All the team members should have a comprehensive knowledge
of all aspects of the audit. \par\pard\qj \li1440\ri980\sb184\sl-260\slmult0\tx1
799 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f11\fs22 24. The auditor\u
8217?s understanding of the entity and its environment consists of an understand
ing of \line\tab \up0 \expndtw0\charscalex100 the following aspects: \par\pard\l
i1710\sb7\sl-253\slmult0\fi146\tx2339 \up0 \expndtw-2\charscalex100 I.\tab \up0
\expndtw-1\charscalex100 Industry, regulatory, and other external factors, inclu
ding the applicable financial reporting\par\pard\li1710\sb1\sl-253\slmult0\fi628
\up0 \expndtw-2\charscalex100 framework.\par\pard\li1710\sb0\sl-252\slmult0\fi8
5\tx2339 \up0 \expndtw-2\charscalex100 II.\tab \up0 \expndtw-1\charscalex100 Nat
ure of the entity, including the entity\u8217?s selection and application of acc
ounting policies.\par\pard\li1710\sb1\sl-253\slmult0\fi23\tx2339 \up0 \expndtw-2
\charscalex100 III.\tab \up0 \expndtw-1\charscalex100 Objectives and strategies
and the related business risks that may result in a material\par\pard\li1710\sb0
\sl-253\slmult0\fi628 \up0 \expndtw-2\charscalex100 misstatement of the financia
l statements.\par\pard\li1710\sb0\sl-253\slmult0\fi0\tx2339 \up0 \expndtw-2\char
scalex100 IV.\tab \up0 \expndtw-2\charscalex100 Measurement and review of the en
tity\u8217?s financial performance.\par\pard\li1710\sb1\sl-253\slmult0\fi61 \up0
\expndtw-2\charscalex100 V.
Internal control.\par\pard\li1710\sb0\sl-252\sl

mult0\fi88\tx7199 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 a.

All of the above\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\
fs22 c.
I, II and III\par\pard\li1710\sb1\sl-253\slmult0\fi88\tx7199 \up0 \ex
pndtw-2\charscalex100 b.
I, II, III and IV\tab \up0 \expndtw-2\charscalex100
d.
I, II, III and V\par\pard\ql \li1440\sb182\sl-253\slmult0 \up0 \expndtw-3\
charscalex100 25. Nature of an entity refers to \par\pard\qj \li1799\ri981\sb0\s
l-260\slmult0\tx2159 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf11\f12\fs22
a. The entity\u8217?s operations, its ownership and governance, the types of in
vestments that it is \line\tab \up0 \expndtw0\charscalex103 making and plans to
make, the way that the entity is structured and how it is financed. \par\pard\ql
\li1799\sb1\sl-238\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf10\f
11\fs22 b. The overall plans for the entity. \par\pard\ql \li1799\sb3\sl-237\sl
mult0 \up0 \expndtw-2\charscalex100 c. The operational approaches by which man
agement intends to achieve its objectives. \par\pard\ql \li1799\ri979\sb13\sl-25
0\slmult0\tx2159\tx2159 \up0 \expndtw0\charscalex102 d. The result of significa
nt conditions, events, circumstances, actions or inactions that could \line\tab
\up0 \expndtw-1\charscalex100 adversely affect the entity\u8217?s ability to ach
ieve its objectives and execute its strategies, or the \line \tab \up0 \expndtw2\charscalex100 setting of inappropriate objectives and strategies. \par\pard\ql
\li1440\sb188\sl-253\slmult0 \up0 \expndtw-3\charscalex100 26. Which statement
is correct regarding business risks? \par\pard\qj \li1799\ri979\sb18\sl-240\slmu
lt0\tx2159 \up0 \expndtw0\charscalex100 a. The risk of material misstatement of
the financial statements is broader than business risk, \line\tab \up0 \expndtw
-1\charscalex100 though it includes the latter. \par\pard\ql \li1799\sb10\sl-253
\slmult0 \up0 \expndtw-2\charscalex100 b. The auditor should identify or assess
all business risks. \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\cha
rscalex100 c. All business risks give rise to risks of material misstatement.
\par\pard\ql \li1799\ri916\sb0\sl-260\slmult0\tx2159\tx2159 \up0 \expndtw-2\char
scalex100 \ul0\nosupersub\cf11\f12\fs22 d. A business risk may have an im
mediate consequence for the risk of misstatement for \line\tab \up0 \expn
dtw0\charscalex104 classes of transactions, account balances, and disclosures at
the assertion level or the \line \tab \up0 \expndtw-3\charscalex100 financial s
tatements as a whole. \par\pard\ql \li1440\sb148\sl-253\slmult0 \up0 \expndtw-2\
charscalex100 \ul0\nosupersub\cf10\f11\fs22 27. A potential business risk create
d by industry developments may most likely include \par\pard\ql \li1799\sb7\sl-2
53\slmult0 \up0 \expndtw-1\charscalex100 a. Increased product liability. \par\p
ard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-1\charscalex100 b. increased le
gal exposure \par\pard\qj \li1799\ri964\sb0\sl-260\slmult0\tx2159 \up0 \expndtw2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. The entity does not have
the personnel or expertise to deal with the changes in the \line\tab
\up0 \expndtw-3\charscalex100 industry. \par\pard\ql \li1799\sb1\sl-238\slmult0
\up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf10\f11\fs22 d. Loss of financin
g due to the entity\u8217?s inability to meet financing requirements. \par\pard\
qj \li1440\ri977\sb164\sl-260\slmult0\tx1799 \up0 \expndtw-1\charscalex100 28. T
he following are examples of conditions and events that may indicate the existen
ce of risks of \line\tab \up0 \expndtw-2\charscalex100 material misstatement, ex
cept \par\pard\ql \li1799\sb6\sl-253\slmult0 \up0 \expndtw-2\charscalex100 \ul0\
nosupersub\cf11\f12\fs22 a. Operations in regions that are economically stable.
\par\pard\ql \li1799\sb1\sl-237\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosu
persub\cf10\f11\fs22 b. Pending litigation and contingent liabilities. \par\par
d\ql \li1799\sb10\sl-253\slmult0 \up0 \expndtw-2\charscalex100 c. Application
of new accounting pronouncements. \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \
expndtw-2\charscalex100 d. Entities or business segments likely to be sold. \pa
r\pard\qj \li1440\ri979\sb198\sl-240\slmult0\tx1799 \up0 \expndtw0\charscalex100
29. Which of the following conditions and events may most likely indicate the e
xistence of risks of \line\tab \up0 \expndtw-1\charscalex100 material misstateme
nt? \par\pard\ql \li1799\sb10\sl-253\slmult0 \up0 \expndtw-1\charscalex100 a. H
aving personnel with appropriate accounting and financial reporting skills. \par
\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-2\charscalex100 b. Accounting
measurements that involve simple processes. \par\pard\ql \li1799\sb1\sl-237\slm

ult0 \up0 \expndtw-2\charscalex100 c. Significant amount of routine or systema

tic transactions. \par\pard\ql \li1799\sb10\sl-253\slmult0 \up0 \expndtw-2\chars
calex100 \ul0\nosupersub\cf11\f12\fs22 d. Constraints on the availability of ca
pital and credit. \par\pard\ql \li9687\sb0\sl-414\slmult0 \par\pard\ql\li9687\sb
0\sl-414\slmult0 \par\pard\ql\li9687\sb86\sl-414\slmult0 \up0 \expndtw0\charscal
ex97 \ul0\nosupersub\cf2\f3\fs36 AT-5909 \par\pard\sect\sectd\fs24\paperw12240\p
aperh18720\pard\sb0\sl-240{\bkmkstart Pg5}{\bkmkend Pg5}\par\pard\ql \li10064\sb
0\sl-230\slmult0 \par\pard\ql\li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\sb
30\sl-230\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs20 Page
5 of 7 \par\pard\ql \li1440\sb191\sl-253\slmult0 \up0 \expndtw-2\charscalex100
\ul0\nosupersub\cf10\f11\fs22 30. Which statement is incorrect regarding signifi
cant risks that require special audit consideration? \par\pard\qj \li1799\ri982\
sb2\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex103 a. The auditor should de
termine which of the risks identified are, in the auditor\u8217?s judgment, \lin
e\tab \up0 \expndtw-3\charscalex100 risks that require special audit considerati
on. \par\pard\ql \li1799\ri885\sb0\sl-253\slmult0\tx2159\tx2159\tx2159 \up0 \exp
ndtw-1\charscalex100 b. The auditor excludes the effect of identified controls
related to the risk to determine whether \line\tab \up0 \expndtw-3\charscalex100
the nature of the risk, the likely magnitude of the potential missta
tement including the \line \tab \up0 \expndtw-1\charscalex100 possibility that
the risk may give rise to multiple misstatements, and the likelihood of the ris
k \line \tab \up0 \expndtw-2\charscalex100 occurring are such that they require
special audit consideration. \par\pard\qj \li1799\ri980\sb0\sl-260\slmult0\tx215
9 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. Routine, noncomplex transactions that are subject to systematic processing are more likely \
line\tab \up0 \expndtw-1\charscalex100 to give rise to significant risks because
they have higher inherent risks. \par\pard\qj \li1799\ri979\sb0\sl-260\slmult0\
tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f11\fs22 d. Significan
t risks are often derived from business risks that may result in a
material \line\tab \up0 \expndtw0\charscalex100 misstatement. \par\pard\ql \li14
40\ri977\sb157\sl-250\slmult0\tx1799\tx1799 \up0 \expndtw0\charscalex100 31. Exa
mples of situations where the auditor may find it impossible to design effective
substantive \line\tab \up0 \expndtw0\charscalex100 procedures that by themse
lves provide sufficient appropriate audit evidence that certain \line \ta
b \up0 \expndtw-1\charscalex100 assertions are not materially misstated include
the following: \par\pard\ql \li1796\ri977\sb10\sl-251\slmult0\fi61\tx2160\tx2160
\tx2160\tx2160\tx2160\tx2160\tx2160\tx2160 \up0 \expndtw0\charscalex100 I. An e
ntity that conducts its business using IT to initiate orders for the purchase an
d delivery \line\tab \up0 \expndtw0\charscalex100 of goods based on predetermine
d rules of what to order and in what quantities and to pay \line \tab \up0 \expn
dtw-2\charscalex100 the related accounts payable based on system-generated
decisions initiated upon the \line \tab \up0 \expndtw-1\charscalex100 confi
rmed receipt of goods and terms of payment. No other documentation of orders pla
ced \line \tab \up0 \expndtw-2\charscalex100 or goods received is produced or ma
intained, other than through the IT system. \line \up0 \expndtw0\charscalex100
II. An entity that provides services to customers via electronic media (for exa
mple, an Internet \line\tab \up0 \expndtw0\charscalex106 service provider or a t
elecommunications company) and uses IT to create a log of the \line \tab \up0 \e
xpndtw0\charscalex105 services provided to its customers, initiate and process i
ts billings for the services and \line \tab \up0 \expndtw0\charscalex104 automat
ically record such amounts in electronic accounting records that are part of the
\line \tab \up0 \expndtw-3\charscalex100 system used to produce the entity\u821
7?s financial statements. \par\pard\li1800\sb19\sl-253\slmult0\fi0\tx4320\tx6480
\tx8640 \up0 \expndtw-7\charscalex100 \ul0\nosupersub\cf11\f12\fs22 a.
I and
II\tab \up0 \expndtw-7\charscalex100 \ul0\nosupersub\cf10\f11\fs22 b.
I only\
tab \up0 \expndtw-7\charscalex100 c.
II only\tab \up0 \expndtw-7\charscalex10
0 d.
Neither I nor II\par\pard\ql \li1440\sb236\sl-253\slmult0 \up0 \expndtw2\charscalex100 PSA 330 - The Auditor\u8217?s Procedures In Response to Assessed
Risks \par\pard\ql \li1440\sb187\sl-253\slmult0 \up0 \expndtw-3\charscalex100 3
2. PSA 330 requires the auditor to \par\pard\qj \li1799\ri965\sb2\sl-260\slmult0

\tx2159 \up0 \expndtw-2\charscalex100 a. Determine overall responses to add

ress risks of material misstatement at the financial \line\tab \up0 \expn
dtw-3\charscalex100 statement level. \par\pard\ql \li1799\ri979\sb0\sl-253\slmul
t0\tx2159\tx2159\tx2159 \up0 \expndtw0\charscalex100 b. Design and perform furt
her audit procedures, including tests of the operating effectiveness \line\tab \
up0 \expndtw0\charscalex100 of controls, when relevant or required, and substant
ive procedures, whose nature, timing, \line \tab \up0 \expndtw0\charscalex100 an
d extent are responsive to the assessed risks of material misstatement at the as
sertion \line \tab \up0 \expndtw0\charscalex100 level. \par\pard\qj \li1799\ri97
9\sb4\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex100 c. Evaluate whether
the risk assessment remain appropriate and to conclude whether \line\ta
b \up0 \expndtw0\charscalex100 sufficient appropriate audit evidence has been ob
tained. \par\pard\ql \li1799\sb10\sl-253\slmult0 \up0 \expndtw0\charscalex100 \u
l0\nosupersub\cf11\f12\fs22 d. All of the above. \par\pard\qj \li1440\ri927\sb2
42\sl-260\slmult0\tx1799 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f11\f
s22 33. The auditor should determine overall responses to address the risks of m
aterial misstatement \line\tab \up0 \expndtw0\charscalex100 at the financial sta
tement level. Such responses least likely include \par\pard\qj \li1799\ri980\s
b17\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex103 a. Emphasizing to the au
dit team the need to maintain professional skepticism in gathering \line\tab \up
0 \expndtw0\charscalex103 and evaluating audit evidence. \par\pard\ql \li1799\sb
10\sl-253\slmult0 \up0 \expndtw-1\charscalex100 b. Assigning more experienced s
taff or those with special skills or using experts. \par\pard\qj \li1799\ri981\s
b18\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex100 c. Incorporating addit
ional elements of unpredictability in the selection of further audit \l
ine\tab \up0 \expndtw0\charscalex100 procedures to be performed. \par\pard\ql \l
i1799\sb10\sl-253\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf11\f12
\fs22 d. Performing substantive procedures at an interim date instead of at per
iod end. \par\pard\ql \li1439\ri978\sb242\sl-260\slmult0\tx1799\tx1799 \up0 \exp
ndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 34. The assessment of the ris
ks of material misstatement at the financial statement level is affected \line\t
ab \up0 \expndtw0\charscalex102 by the auditor\u8217?s understanding of the
control environment. Weaknesses in the control \line \tab \up0 \expndtw0\
charscalex102 environment ordinarily will lead the auditor to \par\pard\qj \li17
99\ri983\sb0\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex105 a. Have more co
nfidence in internal control and the reliability of audit evidence generated \li
ne\tab \up0 \expndtw-3\charscalex100 internally within the entity. \par\pard\ql
\li1799\sb1\sl-211\slmult0 \up0 \expndtw-1\charscalex100 b. Conduct some audit
procedures at an interim date rather than at period end. \par\pard\ql \li1799\sb
15\sl-253\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c.
Modify the nature of audit procedures to obtain more persuasive audit evidenc
e. \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-1\charscalex100 \ul0\no
supersub\cf10\f11\fs22 d. Decrease the number of locations to be included in th
e audit scope. \par\pard\ql \li1439\ri978\sb250\sl-250\slmult0\tx1799\tx1799 \up
0 \expndtw0\charscalex104 35. The auditor should design and perform further audi
t procedures whose nature, timing, and \line\tab \up0 \expndtw0\charscalex104 ex
tent are responsive to the assessed risks of material misstatement at the assert
ion level. \line \tab \up0 \expndtw-2\charscalex100 Which of the following is th
e most important consideration in responding to the assessed risks? \par\pard\li
1799\sb18\sl-253\slmult0\fi0\tx6478 \up0 \expndtw-3\charscalex100 a. \ul0\nosupe
rsub\cf11\f12\fs22 The nature of the audit procedures.\tab \up0 \expndtw-3\char
scalex100 \ul0\nosupersub\cf10\f11\fs22 c.
The timing of the audit procedures
.\par\pard\li1799\sb0\sl-253\slmult0\fi0\tx6479 \up0 \expndtw-3\charscalex100 b.
The extent of the audit procedures.\tab \up0 \expndtw-3\charscalex100 d.
Al
l of these are equally important.\par\pard\ql \li9687\sb0\sl-414\slmult0 \par\pa
rd\ql\li9687\sb217\sl-414\slmult0 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf
2\f3\fs36 AT-5909
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p{\sn fBehindDocument}{\sv 1}}{\sp{\sn lineColor}{\sv 0}}
}}\par\pard\sect\sectd\fs24\paperw12240\paperh18720\pard\sb0\sl-240{\bkmkstart P
g6}{\bkmkend Pg6}\par\pard\ql \li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\s
b0\sl-230\slmult0 \par\pard\ql\li10064\sb30\sl-230\slmult0 \up0 \expndtw-3\chars
calex100 \ul0\nosupersub\cf1\f2\fs20 Page 6 of 7 \par\pard\ql \li1440\ri819\sb18
6\sl-260\slmult0\tx1799\tx1799 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1
0\f11\fs22 36. The auditor\u8217?s assessment of the identified risks at
the assertion level provides a basis for \line\tab \up0 \expndtw0\charsca
lex103 considering the appropriate audit approach for designing and perf
orming further audit \line \tab \up0 \expndtw-4\charscalex100 procedures. Wh
ich of the following is incorrect? \par\pard\ql \li1799\ri979\sb0\sl-260\slmult0
\tx2159\tx2159 \up0 \expndtw-1\charscalex100 a. The auditor may determine that
only by performing tests of controls may the auditor achieve \line\tab \up0 \exp
ndtw0\charscalex100 an effective response to the assessed risk of materi
al misstatement for a particular \line \tab \up0 \expndtw-1\charscalex100 as
sertion. \par\pard\ql \li1799\ri958\sb0\sl-260\slmult0\tx2159\tx2159 \up0 \expnd
tw0\charscalex100 b. The auditor may determine that performing only substantive
procedures is appropriate for \line\tab \up0 \expndtw-2\charscalex100 specific
assertions and, therefore, the auditor excludes the effect of controls
from the \line \tab \up0 \expndtw-3\charscalex100 relevant risk assessment. \
par\pard\ql \li1799\sb0\sl-198\slmult0 \up0 \expndtw-2\charscalex100 c. The a
uditor needs to be satisfied that performing only substantive procedure
s for the \par\pard\qj \li2159\ri980\sb20\sl-240\slmult0 \up0 \expndtw0\charsc
alex104 relevant assertion would be effective in reducing the risk of material m
isstatement to an \up0 \expndtw-3\charscalex100 acceptably low level. \par\pard\
ql \li1799\ri980\sb12\sl-250\slmult0\tx2159\tx2159 \up0 \expndtw0\charscalex100
\ul0\nosupersub\cf11\f12\fs22 d. The auditor designs and performs substant
ive procedures for each material class of \line\tab \up0 \expndtw0\charsca
lex100 transactions, account balance, and disclosure only when the auditor uses
the substantive \line \tab \up0 \expndtw0\charscalex100 approach. \par\pard\ql \
li1439\sb0\sl-253\slmult0 \par\pard\ql\li1439\sb15\sl-253\slmult0 \up0 \expndtw2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 37. Which statement is incorrect r
egarding the nature of further audit procedures? \par\pard\ql \li1799\sb1\sl-237
\slmult0 \up0 \expndtw-1\charscalex100 a. The nature of further audit procedure
s refers to their purpose and their type. \par\pard\ql \li1799\sb10\sl-253\slmul
t0 \up0 \expndtw-1\charscalex100 b. Certain audit procedures may be more approp
riate for some assertions than others. \par\pard\qj \li1799\ri830\sb18\sl-240\sl
mult0\tx2159 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. Th
e higher the auditor\u8217?s assessment of risk, the less reliable and
relevant is the audit \line\tab \up0 \expndtw-4\charscalex100 evidence soug
ht by the auditor from substantive procedures. \par\pard\ql \li1799\ri980\sb12\s
l-250\slmult0\tx2159\tx2159 \up0 \expndtw0\charscalex102 \ul0\nosupersub\cf10\f1
1\fs22 d. The auditor is required to obtain audit evidence about the accuracy a
nd completeness of \line\tab \up0 \expndtw0\charscalex103 information produced b
y the entity\u8217?s information system when that information is used in \line \
tab \up0 \expndtw0\charscalex103 performing audit procedures. \par\pard\ql \li14
39\sb0\sl-253\slmult0 \par\pard\ql\li1439\sb15\sl-253\slmult0 \up0 \expndtw-2\ch
arscalex100 38. Which statement is incorrect regarding the timing of further aud
it procedures? \par\pard\qj \li1799\ri980\sb0\sl-260\slmult0\tx2159 \up0 \expndt
w0\charscalex103 a. Timing refers to when audit procedures are performed or the
period or date to which the \line\tab \up0 \expndtw-3\charscalex100 audit evide
nce applies. \par\pard\qj \li1799\ri980\sb0\sl-240\slmult0\tx2158 \up0 \expndtw0
\charscalex100 b. The auditor may perform tests of controls or substantive proc

edures at an interim date or at \line\tab \up0 \expndtw-1\charscalex100 period e

nd. \par\pard\qj \li1799\ri981\sb19\sl-240\slmult0\tx2158 \up0 \expndtw0\charsca
lex102 c. If the auditor performs tests of controls or substantive procedures
prior to period end, the \line\tab \up0 \expndtw0\charscalex102 auditor consider
s the additional evidence required for the remaining period. \par\pard\ql \li179
9\sb10\sl-253\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs2
2 d. All audit procedures can be performed prior to period end. \par\pard\ql \l
i1439\sb247\sl-253\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f1
1\fs22 39. Which statement is incorrect regarding the extent of further audit pr
ocedures? \par\pard\ql \li1799\sb7\sl-253\slmult0 \up0 \expndtw-1\charscalex100
a. Extent includes the quantity of a specific audit procedure to be performed.
\par\pard\ql \li1799\ri981\sb10\sl-250\slmult0\tx2158\tx2158 \up0 \expndtw-1\cha
rscalex100 b. The extent of an audit procedure is determined by the j
udgment of the auditor after \line\tab \up0 \expndtw0\charscalex104 consider
ing the materiality, the assessed risk, and the degree of assurance the auditor
\line \tab \up0 \expndtw-3\charscalex100 plans to obtain. \par\pard\qj \li1799\r
i867\sb19\sl-240\slmult0\tx2158 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf
11\f12\fs22 c. The auditor ordinarily decreases the extent of audit pr
ocedures as the risk of material \line\tab \up0 \expndtw-4\charscalex100 mi
sstatement increases. \par\pard\qj \li1799\ri981\sb4\sl-260\slmult0\tx2158 \up0
\expndtw0\charscalex102 \ul0\nosupersub\cf10\f11\fs22 d. Increasing the extent
of an audit procedure is effective only if the audit procedure itself is \line\t
ab \up0 \expndtw0\charscalex102 relevant to the specific risk. \par\pard\ql \li1
438\sb246\sl-253\slmult0 \up0 \expndtw-3\charscalex100 40. Which statement is in
correct regarding tests of controls? \par\pard\ql \li1798\sb7\sl-253\slmult0 \up
0 \expndtw-2\charscalex100 a. Tests of controls are required under certain circ
umstances. \par\pard\qj \li1798\ri981\sb0\sl-260\slmult0\tx2158 \up0 \expndtw-1\
charscalex100 b. Tests of controls are required when an entity conducts
its business using IT and no \line\tab \up0 \expndtw-1\charscalex100 docu
mentation of transactions is produced or maintained, other than through the IT s
ystem. \par\pard\ql \li1798\ri947\sb0\sl-260\slmult0\tx2158\tx2158 \up0 \expndtw
0\charscalex102 c. Tests of the operating effectiveness of controls are perfor
med only on those controls that \line\tab \up0 \expndtw-2\charscalex100 the aud
itor has determined are suitably designed to prevent, or detect and c
orrect, a \line \tab \up0 \expndtw-3\charscalex100 material misstatement in an
assertion. \par\pard\qj \li1798\ri983\sb0\sl-260\slmult0\tx2158 \up0 \expndtw0\c
harscalex100 \ul0\nosupersub\cf11\f12\fs22 d. Testing the operating effectivene
ss of controls is the same as obtaining audit evidence that \line\tab \up0 \expn
dtw-1\charscalex100 controls have been implemented. \par\pard\ql \li1438\sb188\s
l-253\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 41. Wh
ich statement is incorrect regarding the nature of tests of controls? \par\pard\
qj \li1797\ri983\sb2\sl-260\slmult0\tx2157 \up0 \expndtw0\charscalex100 a. As
the planned level of assurance increases, the auditor seeks more relia
ble audit \line\tab \up0 \expndtw0\charscalex100 evidence. \par\pard\ql \li1797
\ri981\sb0\sl-260\slmult0\tx2157\tx2157 \up0 \expndtw0\charscalex100 b. Those
controls subject to testing by performing inquiry combined with inspect
ion or \line\tab \up0 \expndtw0\charscalex102 reperformance ordinarily provide
more assurance than those controls for which the audit \line \tab \up0 \expndtw0
\charscalex102 evidence consists solely of inquiry and observation. \par\pard\qj
\li1797\ri982\sb0\sl-260\slmult0\tx2157 \up0 \expndtw0\charscalex100 \ul0\nosup
ersub\cf11\f12\fs22 c. The absence of misstatements detected by a subst
antive procedure provides audit \line\tab \up0 \expndtw0\charscalex100 eviden
ce that controls related to the assertion being tested are effective. \par\pard\
qj \li1797\ri984\sb0\sl-240\slmult0\tx2157 \up0 \expndtw0\charscalex100 \ul0\nos
upersub\cf10\f11\fs22 d. A material misstatement detected by the auditor\u8217?
s procedures that was not identified by the \line\tab \up0 \expndtw0\charscalex1
00 entity ordinarily is indicative of the existence of a material weakness in in
ternal control. \par\pard\ql \li9687\sb234\sl-414\slmult0 \up0 \expndtw0\charsca
lex97 \ul0\nosupersub\cf2\f3\fs36 AT-5909 \par\pard\sect\sectd\fs24\paperw12240\
paperh18720\pard\sb0\sl-240{\bkmkstart Pg7}{\bkmkend Pg7}\par\pard\ql \li10064\s

b0\sl-230\slmult0 \par\pard\ql\li10064\sb0\sl-230\slmult0 \par\pard\ql\li10064\s

b30\sl-230\slmult0 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs20 Pag
e 7 of 7 \par\pard\ql \li1440\sb0\sl-253\slmult0 \par\pard\ql\li1440\sb178\sl-25
3\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf10\f11\fs22 42. Which
statement is incorrect regarding the timing of tests of controls? \par\pard\ql \
li1800\ri980\sb0\sl-260\slmult0\tx2160\tx2160 \up0 \expndtw0\charscalex100 a. A
udit evidence pertaining only to a point in time may be sufficient for the audit
or\u8217?s purpose, \line\tab \up0 \expndtw-2\charscalex100 for example, when te
sting controls over the entity\u8217?s physical inventory counting at the period
\line \tab \up0 \expndtw-3\charscalex100 end. \par\pard\qj \li1800\ri981\sb0\sl
-260\slmult0\tx2160 \up0 \expndtw0\charscalex103 b. If the auditor plans to rel
y on controls that have changed since they were last tested, the \line\tab \up0
\expndtw0\charscalex103 auditor should test the operating effectiveness of such
controls in the current audit. \par\pard\ql \li1800\ri896\sb0\sl-250\slmult0\tx2
160\tx2160 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. If t
he auditor plans to rely on controls that have not changed since they were last
tested, the \line\tab \up0 \expndtw-3\charscalex100 auditor should test the
operating effectiveness of such controls at least once in every \line \
tab \up0 \expndtw-4\charscalex100 second audit. \par\pard\ql \li1800\ri980\sb0\s
l-250\slmult0\tx2160\tx2160 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f1
1\fs22 d. When there are a number of controls for which the auditor determines
that it is appropriate \line\tab \up0 \expndtw0\charscalex100 to use audit ev
idence obtained in prior audits, the auditor should test the operating
\line \tab \up0 \expndtw-1\charscalex100 effectiveness of some controls each au
dit. \par\pard\ql \li1440\sb209\sl-253\slmult0 \up0 \expndtw-2\charscalex100 43.
Which statement is incorrect regarding the extent of tests of controls? \par\pa
rd\qj \li1799\ri981\sb18\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex100 a.
The auditor designs tests of controls to obtain sufficient appropriate audit evi
dence that the \line\tab \up0 \expndtw-1\charscalex100 controls operated effecti
vely throughout the period of reliance. \par\pard\qj \li1799\ri980\sb4\sl-260\sl
mult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf11\f12\fs22 b. The
more the auditor relies on the operating effectiveness of controls in the assess
ment of \line\tab \up0 \expndtw-1\charscalex100 risk, the lesser is the extent o
f the auditor\u8217?s tests of controls. \par\pard\qj \li1799\ri981\sb0\sl-260\s
lmult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10\f11\fs22 c. If
the rate of expected deviation is expected to be too high, the auditor may dete
rmine that \line\tab \up0 \expndtw-1\charscalex100 tests of controls for a parti
cular assertion may not be effective. \par\pard\qj \li1799\ri980\sb0\sl-240\slmu
lt0\tx2159 \up0 \expndtw0\charscalex100 d. Because of the inherent consistency
of IT processing, the auditor may not need to increase \line\tab \up0 \expndtw-1
\charscalex100 the extent of testing of an automated control. \par\pard\ql \li14
40\sb227\sl-253\slmult0 \up0 \expndtw-3\charscalex100 44. Which statement is inc
orrect regarding substantive procedures? \par\pard\ql \li1799\ri901\sb10\sl-250\
slmult0\tx2159\tx2159 \up0 \expndtw-3\charscalex100 a. Substantive procedures
are performed in order to detect material misstatements at the \line\t
ab \up0 \expndtw0\charscalex103 assertion level, and include tests of details of
classes of transactions, account balances, \line \tab \up0 \expndtw0\charscalex
103 and disclosures and substantive analytical procedures. \par\pard\qj \li1799\
ri981\sb2\sl-260\slmult0\tx2159 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf
11\f12\fs22 b. The auditor always performs substantive procedures for each clas
s of transactions, account \line\tab \up0 \expndtw-2\charscalex100 balance, and
disclosure. \par\pard\ql \li1799\ri979\sb0\sl-260\slmult0\tx2159\tx2159 \up0 \ex
pndtw0\charscalex104 \ul0\nosupersub\cf10\f11\fs22 c. When the auditor has det
ermined that an assessed risk of material misstatement at the \line\tab \up0 \ex
pndtw0\charscalex100 assertion level is a significant risk, the auditor should p
erform substantive procedures that \line \tab \up0 \expndtw0\charscalex100 are s
pecifically responsive to that risk. \par\pard\qj \li1799\ri982\sb0\sl-260\slmul
t0\tx2159 \up0 \expndtw0\charscalex100 d. In order to obtain sufficient appropr
iate audit evidence, the substantive procedures related \line\tab \up0 \expndtw0
\charscalex100 to significant risks are most often designed to obtain audit evid

ence with high reliability. \par\pard\qj \li1440\ri981\sb180\sl-260\slmult0\tx17

99 \up0 \expndtw0\charscalex100 45. The auditor\u8217?s substantive procedures s
hould include the following audit procedures related to \line\tab \up0 \expndtw0
\charscalex100 the financial statement closing process: \par\pard\ql \li1857\sb1
\sl-235\slmult0 \up0 \expndtw-1\charscalex100 I. Agreeing the financial stateme
nts to the underlying accounting records. \par\pard\qj \li1796\ri980\sb5\sl-260\
slmult0\tx2160 \up0 \expndtw0\charscalex100 II. Examining material journal e
ntries and other adjustments made during the course of \line\tab \up0 \e
xpndtw-1\charscalex100 preparing the financial statements. \par\pard\li1800\sb2\
sl-253\slmult0\fi0\tx4320\tx6480\tx8640 \up0 \expndtw-7\charscalex100 \ul0\nosup
ersub\cf11\f12\fs22 a.
I and II\tab \up0 \expndtw-7\charscalex100 \ul0\nosupe
rsub\cf10\f11\fs22 b.
I only\tab \up0 \expndtw-7\charscalex100 c.
II only\
tab \up0 \expndtw-7\charscalex100 d.
Neither I nor II\par\pard\qj \li1440\ri9
79\sb186\sl-260\slmult0\tx1799 \up0 \expndtw0\charscalex105 46. Which statement
is incorrect regarding the nature, timing and extent of substantive \
line\tab \up0 \expndtw-3\charscalex100 procedures? \par\pard\qj \li1799\ri983\sb
17\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex100 a. Substantive analytica
l procedures are generally more applicable to large volumes of \line\ta
b \up0 \expndtw0\charscalex100 transactions that tend to be predictable over tim
e. \par\pard\qj \li1799\ri981\sb4\sl-260\slmult0\tx2159 \up0 \expndtw0\charscale
x102 b. Tests of details are ordinarily more appropriate to obtain audit eviden
ce regarding certain \line\tab \up0 \expndtw0\charscalex102 assertions about acc
ount balances, including existence and valuation. \par\pard\ql \li1799\sb1\sl-23
5\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf11\f12\fs22 c. Subst
antive procedures cannot be performed at an interim date. \par\pard\qj \li1799\r
i979\sb5\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf10
\f11\fs22 d. The greater the risk of material misstatement, the greater
the extent of substantive \line\tab \up0 \expndtw0\charscalex100 procedures
. \par\pard\qj \li1440\ri979\sb160\sl-260\slmult0\tx1799 \up0 \expndtw0\charscal
ex103 47. Which statement is incorrect regarding evaluation of the sufficiency a
nd appropriateness of \line\tab \up0 \expndtw0\charscalex103 audit evidence obta
ined? \par\pard\ql \li1799\ri898\sb9\sl-250\slmult0\tx2159\tx2159 \up0 \expndtw0
\charscalex105 a. Based on the audit procedures performed and the audit evidenc
e obtained, the auditor \line\tab \up0 \expndtw-3\charscalex100 should evaluate
whether the assessments of the risks of material misstatement at the
\line \tab \up0 \expndtw-4\charscalex100 assertion level remain appropriate. \p
ar\pard\qj \li1799\ri980\sb19\sl-240\slmult0\tx2159 \up0 \expndtw0\charscalex100
b. As the auditor performs planned audit procedures, the audit evidence obtain
ed may cause \line\tab \up0 \expndtw0\charscalex100 the auditor to modify the na
ture, timing, or extent of other planned audit procedures. \par\pard\qj \li1799\
ri978\sb4\sl-260\slmult0\tx2159 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf1
1\f12\fs22 c. In developing an opinion, the auditor considers only the audit e
vidence which corroborate \line\tab \up0 \expndtw0\charscalex100 the assertions
in the financial statements. \par\pard\qj \li1799\ri980\sb0\sl-260\slmult0\tx215
9 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf10\f11\fs22 d. If the auditor
is unable to obtain sufficient appropriate audit evidence, the auditor should \l
ine\tab \up0 \expndtw-3\charscalex100 express a qualified opinion or a disclaime
r of opinion. \par\pard\ql \li5341\sb86\sl-253\slmult0 \up0 \expndtw-3\charscale
x100 \ul0\nosupersub\cf13\f14\fs22 - end of AT-5909 -\par\pard\ql \li9687\sb94\s
l-414\slmult0 \up0 \expndtw0\charscalex97 \ul0\nosupersub\cf2\f3\fs36 AT-5909 \p
ar\pard\sect\sectd\fs24}