33. Which of the following situations are likely to result in an adversea. a. There is a material and extremely large, pervasive, misstatement in a specific accountb. b. There are several misstatements that increase net income and arematerial when combined but not pervasivec. c. The management omitted a disclosure that is fundamental to the users of the financial statements and is pervasived. d. A & C34) In which situation would the auditor be choosing between "except for" qualified opinion and an adverse opinion?A) A client-imposed scope limitation B) A circumstance imposed scope limitationC) Lack of full disclosure D) The auditor lacks independence.35. Which of the following statement is(are) correct about the accounting & transaction cycles?a. a. The accounting cycle is a process of identifying,analyzing,recording, and reporting the accounting events of a business during the fiscal yearb. b. The transaction cycle is a set of inter-related business transactionsc. c. The accounting cycle begins at the beginning of the fiscal year and ends when audited financial statements have been issuedd. d. All of the above36. Which transaction cycle is an auditor likely examining when the auditor is testing completeness assertion for the office rent paid by the company?a. a. Expenditure cycleb. b. Payroll cyclec. c. Inventory cycled. d. Fixed asset cycle37. Which of the following statements best describe(s) the three-way matching concept related to purchases of inventory by a company?a. a. Matching of amounts and quantity of purchases in journal entry, ledger and trial balanceb. b. Matching of amounts and quantity on the purchase order, the receiving document of the company, and the invoice received from the supplierc. c. Both a & bd. d. None of the above38. Which of the following is the common key account for the financing cycle, payroll cycle, and expenditure cycle?a. a. Accrued expensesb. b. Cash in bankc. C. Accounts payabled. d. Withheld income taxes