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24. Which of the following is not a reason for the special significance attached by the to audit)? ot inventories (i.e., inventory is an important and complex account A. The determination of inventory valuation directly affects net income. B. There is not enough evidence available for auditing inventory C. Special valuation problems often exist for unusual types of inventories. D. Inventories are often the largest current asset of an enterprise. An auditor should send a second confirmation request when: a. The customer has responded that he has paid the bill b. No reply to a negative confirmation request is received.er c. The confirmation is returned in the mail because there was a mistake in 25. The customer responds that due to their voucher system they cannot verify the balance. addressing the envelope. d. 26. Which of the following is not a limitation of a system of internal control, that may prevent it from working effectively? a.Errors may arise from misunderstandings, mistakes of judgment, or fatigue. b. Controls that depend on the segregation of duties may be circumvented by collusion c. Management does not believe internal control is important and so doesn't take it seriously d. Management overrides 27. To gather evidence regarding the balance per bank in a bank reconciliation, an auditor could examine all of the following except A) Cutoff bank statement. B) Year-end bank statement. C) Bank confirmation. D) General ledger balance 28. Which of the following is not a tool/technique auditors use to study and document t system of internal control? a. Questionnaires b. Systems flowcharts c. Analytical procedures d. Walk-through

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