1.14 'An audit conducted in accordance with auditing standards provides reasonable assurance as to whether the financial report taken as a whole is free from material misstatement.' What is meant by 'reasonable assurance'? 1.23 The following questions deal with quality controls. Choose the most appropriate answer. Elements of quality control in ASA220: 1.Leadership responsibilities for quality on audits; 2.Ethical requirements - e.g., independence 3.Client evaluation - Acceptance & continuance; 4.Assignment of engagement teams 5.Engagement performance -a)Direction, supervision & performance -b)Reviews -c)Consultation -d)Engagement quality review -e)Differences of opinion 6.Monitoring 7.Documentation A) Inquiring of third parties as to any information regarding a prospective client and its management which may have a bearing on evaluating the prospective client is a procedure relevant to the quality control objective of: 1. Leadership responsibilities 2. Assignment of engagement teams 3. Client acceptance and continuance 4. Engagement performance B) Review and testing of compliance with the firm's general quality control policies and procedures is concerned with the quality control objective of: 1. Assignment of engage. teams 2.Monitoring 3. Client acceptance and continuance 4.Engage. performance C) Utilisation of standardised forms, checklists and questionnaires to assist in the performance of audits is a procedure relevant to the quality control objective of: 1. Ethical requirements 2. Engagement performance 3. Assignment of engagement teams 4. Monitoring D) Having each partner and employee complete annually a questionnaire concerning ownership of shares and membership on boards of directors is a procedure relevant to the quality control objective of: 1. Client acceptance and continuance 2. Ethical requirements 3. Assignment of engagement teams 4. Engagement performance 1.29 In the normal course of performing their responsibilities, auditors often conduct audits/reviews of following: 1. Federal income tax returns of an officer of the company to determine whether he or she has included all taxable income in the return. 2. Disbursements of a branch of the Federal Government for a special research project to determine whether it would have been feasible to accomplish the same research results at a lower cost to taxpayers. 3. Computer operations of a co to evaluate whether compu. centre is being operated as efficiently as possible 4. Annual statements for the use of management -- internal/ or public; FS 5. Operations of the ATO to determine whether the tax auditors are using their time efficiently in conducting audits --- tax General; performance 6. Statements for bankers and other creditors when the entity is too small to have an audit staff. - public; FS 7. Financial statements of an agency of the Federal Government to ensure that the statements present fairly the financial position and performance of the agency during a period of time. - General; FS 8. Federal income tax returns of a co to determine whether the tax laws have been followed. 9. FS for the use by shareholders when there is an internal audit staff. 10. A debenture trust deed to ensure that a company is following all of the contract 11. The computer operations of a large company to evaluate