39. Which of the following documents can auditors expect a retailer to use in its inventory cycle?a. a. Purchase orderb. b. Vendor's invoice c.d. d. A and BC. Letter on compliance with debt covenants40. Which of the following factors may give rise to the risk of fraud in cash?a. The employee has an opportunity to steal cash from the companyb. The employee experiences financial pressurec. The employee can justify stealing cash from the companyd. All of the above41. Which of the following statements is(are) true about the characteristics of key control?a. Key control is designed effectively to prevent, detect, or correct a material misstatementb. Key control is the primary control that covers a specific area wherea material misstatement could occur.c. Both a & bd. None of the above42. When is an auditor required to test operating effectiveness of controls for a private company?a. The auditor sets their planned control risk below maximum and plansto rely on controlsb. Testing controls for operating effectiveness is not required foraudits of private companies even if auditor plans to rely on controlsThere is a high inherent riskd. Both a & c43. Which of the following actions by the auditor of a public company are likely when the auditor identified a material weakness in a key control?a. The auditor issues an adverse opinion on the effectiveness of internal controlsb. The auditor does not rely on internal control with the material weakness and performs more substantive testingc. Both a & bd. None of the above44. Which of the following audit procedures is not typically used by auditors to test cash account balances?a. Testing reconciliations of balances per bank and per booksb. Examining bank cutoff statementsc. Out of Period Search for unrecorded payables.d. All of the above are typically used by auditors to test cash account balances