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Question(s) / Instruction(s):

"27. Which of the following is a key recommendation in the report completed by the AICPA Special Committee on Financial Reporting? A) Auditors should provide additional qualitative commentary on the quality of a company's earnings. B) Auditors should not provide consulting and audit services for the same client. C) Auditors should ensure that clients use the same accounting methods for financial statement and tax purposes. D) Auditors should expand the types of services they provide to keep pace with the changing nature of user needs. 22. As the acceptable level of detection risk increases, an auditor may change the A) Assessed level of control risk from below the maximum to the maximum level. B) Assurance provided by tests of controls by using a larger sample size than planned. C) Timing of substantive tests from year-end to an interimdate. D) Nature of substantive tests from less effective to more effective procedures. 21. When obtaining an understanding of the entity and its environment, the auditor should obtain an understanding of internal controls primarily to A) Assess the risk of material misstatement and plan the audit. B) Provide suggestions for improvement to the client. C) Serve as a basis for setting audit risk and materiality. D) Comply with general standards.

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