For each item, select the appropriate fundamental principle.Some principles will be used more than once, but each item has onlyone principle as its answer.

-      a.       b.      c.       d.      e.       f.      g.       h.      i.    Auditors' request to obtain bank statements directly from thefinancial institutions with whom the client does business.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    Auditors' assessment of control risk and inherent risk.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    Audit firms have policies with respect to the level of expectedcontinuing professional education.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    Auditor reviews the prior year audit workpapers, currentindustry trends, and client’s unaudited current financialstatements to develop the current year audit strategy.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    Audit firms have policies with respect to employee ownership inaudit clients.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    Auditor evaluates the magnitude of an inventory misstatement todetermine if the misstatement affects the user’s opinion.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    The auditor physically examines inventory to determine theinventory exists.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    An auditor asks the controller questions about the company’saccounting for warranties and determines to investigate thecontroller’s answers further.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    An auditor is considering accepting a new audit client; however,the auditor and the audit firm have no experience with thepotential client’s industry.       -      a.       b.      c.       d.      e.       f.      g.       h.      i.    The senior auditor reviews the work of the assistant auditor toprovide feedback and quality control of the workpapers.

a. Competence and capabilities b. Ethical requirements c. Professional skepticism and professional judgment d. Plan work and properly supervise assistants e. Determine/apply appropriate materiality levels throughoutaudit f. Identify/assess risks of material misstatement, includinginternal control. g. Obtain sufficient and appropriate audit evidence. h. Express an opinion or state an opinion cannot be expressed i. Opinion is based on financial statement conformity withfinancial reporting framework