principle is not a "subsequent event."
QUESTION: 163
To exercise due professional care an auditor should:

A. Critically review the judgment exercised by those assisting in the audit.
B. Examine all available corroborating evidence supporting management's assertions.
C. Design the audit to detect all instances of il egal acts.
D. Attain the proper balance of professional experience and formal education.

Answer(s): A
Explanation:
Choice "a" is correct. To exercise due professional care, an auditor should critically review the
judgment exercised by those assisting in the audit.
Choice "b" is incorrect. An auditor examines some (but not all) available corroborating evidence
supporting management's assertions. Examination of all evidence would not be feasible. Choice
"c" is incorrect. An auditor has a reasonable responsibility to design the audit to detect material
instances of il egal acts, errors, and irregularities. It would not be feasible to design an audit to
detect all instances of il egal acts. Choice "d" is incorrect. "Due professional care" pertains to the
performance of the audit and the preparation of the report. The training standard relates to the
balance of professional experience and formal education of those performing the audit.
QUESTION: 164
This question presents independent factual situations an auditor might encounter in conducting
an audit. List A represents the types of opinions the auditor ordinarily would issue. Select as the
best answer for this item, the action the auditor normally would take. The types of opinions in
List A may be selected once, more than once, or not at all.
Assume:
. The auditor is independent.
. The auditor previously expressed an unqualified opinion on the prior year's financial
statements. . Only single-year (not comparative) statements are presented for the current year. .
The conditions for an unqualified opinion exist unless contradicted in the factual situations. . The
conditions stated in the factual situations are material. . No report modifications are to be made
except in response to the factual situation.
Item to Be Answered
In auditing the long-term investments account, an auditor is unable to obtain audited financial
statements for an investee located in a foreign country. The auditor concludes that sufficient
appropriate audit evidence regarding this investment cannot be obtained.
List A Types of Options

A. An "except for" qualified opinion.
B. An unqualified opinion.
C. An adverse opinion.
D. A disclaimer of opinion.
E. Either an "except for" qualified opinion or an adverse opinion.
F. Either a disclaimer of opinion or an "except for" qualified opinion.
G. Either an adverse opinion or a disclaimer of opinion.

Answer(s): F

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