3 . An individual who is not party to the contract between a CPA and the client , but who is known by both and is intended to receive certain benefits from the contract is known as : 4 . Fraud occurs when : 5 . Laws that have been passed by the U . S . Congress and other governmental units are : 6 . While the Foreign Corrupt Practices Act of 1977 remains in effect , its internal control provisions have been largely superseded by which of the following ? 7 . The cycle approach to auditing : 8 . If a short-term note payable is included in the accounts payable balance on the financial statement , there is a violation of the : 9 . If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence , the auditor : 10 . The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements , whether caused by errors or fraud , that are not ________ are detected . 11 . Which of the following is not one of the three categories of assertions ? 12 . " The auditor should not assume that management is dishonest , but the possibility of dishonesty must be considered ." This is an example of : 13 . Appropriateness of evidence is a measure of the : 14 . An example of a document the auditor receives from the client , but which was prepared by someone outside the client ' s organization , is a : 15 . A ( n ) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit . 16 . The Auditing Standards Board has concluded that analytical procedures are so important that they are required during : 17 . Two determinants of the persuasiveness of evidence are : 18 . Evidence is generally considered appropriate when : 19 . Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence ?