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Audit committee Audit plan Confirmation Cutoff Inherent risk Misappropriation of assets representation of management Risk Substantive procedures Test of controls

Audit committee Audit plan Confirmation Cutoff Inherent risk Misappropriation of assets representation of management Risk Substantive procedures Test of controls

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Audit committee Audit plan Confirmation Cutoff Inherent risk Misappropriation of assets representation of management Risk Substantive procedures Test of controls
2 Select the necessary words from the list of possibilities to complete the following statements. Statements 1. Audit risk at the account balance level consists of three components: (1) (2) control risk and (3) detection risk. The auditors must assess the risk of material misstatement of financial statements due to the two types of fraud, fraudulent financial 2. reporting and 3. The provides an overview which includes the nature, timing and extent of procedures to be performed in an audit. The authenticity and accuracy of an account receivable may be tested by 4. with the debtor, or by vouching entries in the account to supporting documents. 5. The term refers to the process of determining that transactions are reflected in the proper accounting period. Performing certain audit procedures at an interim date, rather than at the balance sheet date, results in additional 6. be controlled by the auditors. that i 7. Assertions are that are set forth in the financial statements. 8. Tests of balances and transactions designed to detect material misstatements are called
Transcribed Image Text:2 Select the necessary words from the list of possibilities to complete the following statements. Statements 1. Audit risk at the account balance level consists of three components: (1) (2) control risk and (3) detection risk. The auditors must assess the risk of material misstatement of financial statements due to the two types of fraud, fraudulent financial 2. reporting and 3. The provides an overview which includes the nature, timing and extent of procedures to be performed in an audit. The authenticity and accuracy of an account receivable may be tested by 4. with the debtor, or by vouching entries in the account to supporting documents. 5. The term refers to the process of determining that transactions are reflected in the proper accounting period. Performing certain audit procedures at an interim date, rather than at the balance sheet date, results in additional 6. be controlled by the auditors. that i 7. Assertions are that are set forth in the financial statements. 8. Tests of balances and transactions designed to detect material misstatements are called
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