As lower acceptable levels of both audit risk and materiality are established, theauditor should plan more work on individual accounts to(1) find smaller misstatements.(2) find larger misstatements.(3) increase the performance materiality in the accounts.(4) increase inherent risk in the accounts

Q: Auditors have not been successful in measuring the components ofthe audit risk model. How is it…

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Q: t that the client might be making duplicate payments to vendors. The risk that the client’s…

A: Auditing refers to the process of tallying all the transactions of a company by physically checking…

Q: Define information risk and explain how thefinancial statement auditing process helps toreduce this…

A: Information risk is the risk that the information disseminated by a company will be materially tend…

Q: In response to an increased level of assessed risk of material misstatement, an auditor of…

A: The auditor shall perform RAP i.e Risk Assessment Procedure that provides a reasonable assurance…

Q: The auditor attempts to correct for the risk of under-auditing (ineffectiveness) and over-auditing…

A: Auditing is the process of examining financial statements, records, and other financial information…

Q: Audit evidence can come in different forms with different degrees of reliability. Which of the…

A: Auditing: It is an independent process of inspection, verification, examination of financial…

Q: As an auditor, why would we be concerned with a high level of transactions that exceed the Bendford…

A: Benford's Law is a statistical principle that suggests certain digits (1 to 9) occur with…

Q: whether there is a reasonable possibility that the company's internal control system will fail to…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…

A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…

Q: In performing a risk-based audit, when developing audit recommendations, the IT auditor should: a)…

A: A risk-based audit is one that priorities and assesses risks in order to identify the organisational…

Q: 1. Please explain Audit of Long-term Liabilities 2. Please explain ISA540 and AU-C 540. 3. What are…

A: Long-term liabilities  relate to  fiscal  scores or debts that a company is  obliged to pay over an…

Q: Which of the following regarding the level of materiality is correct? Select one: a. An increase in…

A: Materiality is a concept used in auditing to determine the significance or importance of an item or…

Q: Inherent risk Select one: a. All of the others are correct. b. Involves auditors attaining…

A: An inaccuracy or omission in a financial statement that is not caused by a breakdown in internal…

Q: If the tests of controls indicate certain controls are not as effective as the auditor originally…

A: Test of controls are performed  to determine the effectiveness of the control to detect and correct…

Q: As auditors expect certain accounts to have more misstatements than others, both overstatements and…

A: Answer:-  Auditing:- In order to confirm that a process or quality system is operating in accordance…

Q: In auditing accounts receivable, the negative form of confirmations request is used when A. Response…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: i need the answer quickly

A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…

Q: Required: When evaluating internal control design effectiveness during the internal control over…

A: Types of Financial Statement Assertions:Existence/Occurrence: This assertion confirms that assets,…

Q: analytical procedures

A: First option is correct because analytical procedures assist to identify the risk by comparing the…

Q: As the risk of material misstatement increases, the amount of evidence the auditor will accumulate…

A: Risk of Material Misstatement: This implies a risk that the company's financial statements are…

Q: As the acceptable level of detection risk decreases, an auditor may change the a. Timing of…

A: Introduction:- Acceptable audit risk is the risk that the auditor is ready to take of giving an…

Q: Auditors have two strategies to choose from, the lower-assessed control risk strategy and the…

A: Incorrect (c)Auditors can always choose to use the predominantly substantive strategy regardless of…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: Examine the information enunciated below carefully and identify the impact of increase in the…

A: The first step in conducting audit is the assessment of audit risk inherent to the business which…

Q: Provide the key factor auditors will have to review when deciding on the inherent risk within the…

A: Answer:- Inherent risk meaning:- The risk created by a financial statement inaccuracy or omission…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: For a particular account balance assertion, the auditor is most likely to be able to avoid…

A: Auditors utilize tests of details to gather proof that the balances, disclosures, and underlying…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: In auditing, ____________ is the process of identifying and assessing the risks of material…

A: Auditing refers to an official inspection of the financial information of an organization. Auditing…

Q: The objective of the auditor is to plan the audit so that it will be performed in an effective…

A: Audit is a sort of examination which is conducted to check the accuracy of the statements of an…

Q: Once risks are identified, auditors assess the risk of material misstatement at the _______ level…

A: Solution: Once risks are identified, auditors assess the risk of material misstatement at the…

Q: a. Increase in the timeliness of direction and more detailed review of work O b. None of the options…

A: The correct answer is option d.)

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: The higher the risk of material misstatements the lower should audit risk be taken. True or false

A: Audit risk is the risk that an auditor expresses an inappropriate opinion.  This is the risk that…

Q: When making a decision about the dollar amount in an account balance based on a sample, the audit…

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Q: potential bias in management's ncerns,

A: Option 1 is wrong because the management' bias in estimation calculations is to be considered to…

Q: If the _______ is less than the _______, the audit team would conclude that the account balance is…

A: Misstatement: It can be defined as the variations between the actual financial statements being…

Q: A reliance strategy is chosen when the auditor: Multiple Choice Plans on conducting tests of…

A: The method used by auditors to depend on the work done by internal auditors or other independent…

Q: The results of analytical procedures may identify previously unrecognized risk of material…

A: Analytical procedures: In obtaining the audit evidence, the auditor has to finally undergo…

Q: The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable…

A: Audit evidence refers to all sorts of information, or bunch of documents or any sort of data…

Q: Continuous assurance auditing will send signals or messages deviated from an audit limit or…

A: Continuous assurance auditing is an automated process that runs on a regular basis to provide…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: In an environment that is highly automated, an auditor determines that it is not possible toreduce…

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