Based on evidence gathered and evaluated, an auditor decides to increase the assessedlevel of control risk from that originally planned. To achieve an overall audit risklevel that is substantially the same as the planned audit risk level, the auditor could(1) decrease detection risk. (3) decrease substantive testing.(2) increase materiality levels. (4) increase inherent risk.

Q: For each of the following, determine how the effectiveness of the entity's internal control affect…

A: a)  As the entity's internal control is more effective. Auditor would assess less level of material…

Q: The risk of material misstatement is composed of which audit risk components?a. Inherent risk and…

A: Audit risk: It is the probability that in the materially misrepresented financial statements, the…

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: Which of the following procedures is most appropriately done if the control risk and inherent risk…

A: Audit test control is an audit examination on the internal control of an entity or firm after it…

Q: Determine which of the following is most correct statement regarding the reliability of audit…

A: Auditing refers to the process of physically inspecting all the financial records of an entity or an…

Q: The higher the level of confidence gained from control testing, the higher the level of assurance…

A: The level of assessment of risk of material misstatement depends on the auditor's level of…

Q: Place the auditor's activities to assess control risk in the proper order: Group of answer choices…

A: Control risk refers to misstatement in financial statements that occur due to error and fraud and…

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

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: During an audit, the internal auditor should consider the following factor(s) in determining the…

A: Audit procedures are the techniques, processes, and methods that auditors use to obtain reliable…

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: (A) The requirement is to find the best statement concerning an auditor’s assessment of…

A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…

Q: Which statement is false

A: Meaning of Internal control The process designed, implemented and maintained by those charge with…

Q: The maximum amount of error in a population that the auditor is willing to accept is referred to as…

A: Acceptable risk is the auditor’s level of risk that they are willing to accept to release an…

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: What responses should an auditor take based on different levels of acceptable detection risk (DR)?…

A: There are different ways an auditor responds to fraud risks that are assessed and it depends upon…

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: A) Consider the likelihood that identified risks could result in material misstatement B) Identify…

A: In order to assess Control Risk/the risk of material misstatement, the auditor would complete all of…

Q: In which of the following situations would an auditor most likely choose a substantive strategy and…

A: An auditor is most likely to adopt substantive strategy and avoid sampling transactions to test…

Q: explain .After documenting internal control in an audit engagement, the auditor may perform tests on…

A: The following tests that the auditor might perform are presented in the order of the evidence that…

Q: state the effect on planned evidence (increase or decrease) of changing each of 'AN INCREASE IN…

A: Audit Risk Audit risk which describes as auditors furnish the inappropriate audit opinion whether…

Q: Which of the following is not compatible with a high level of inherent and control risk? detection…

A: The risk that the processes undertaken by the auditor to reduce audit risk to an acceptably low…

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: Once the auditor detects a control deficiency, which of the following steps must he or shetake…

A: Internal control is the process of achieving objectives in operational efficiency and effectiveness.…

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

A:

Q: Speculate on which type of risk creates the most uncertainty for the auditor and recommend at least…

A: An audit occurs when a professional analyses or inspects multiple books of accounts, followed by a…

Q: Which of the following describes the circumstances that exist when an auditor assesses control risk…

A: Solution Concept Control risk means the risk that the internal controls that are required to prevent…

Q: uld consider whether A. the evidential matter obtained from the study of the internal control…

A: Internal control refers to the systematic approach of formulating policies, programs, rules in order…

Q: Which of the following risk types increase when an auditor performs substantive analytical audit…

A: Analytical Audit Procedures: Analytical procedure is a method by which standard balances are…

Q: aterial misstatement exists when it does not exist     the risk that an auditor incorrectly…

A: Risk of incorrect rejection is defined as   the risk that the auditor concludes that a…

Q: Explain how analytical procedures are useful in: (1) The risk assessment stage of the audit. (2) The…

A: As per standards on auditing (SA) 520 “Analytical Procedures“, The term “analytical procedures” mean…

Q: Explain the circumstances when the auditor should revise the components of the audit risk model and…

A: The auditor should revise the parts of the audit risk model once the proof collected throughout the…

Q: The auditor is typically concerned with two major types of mistakes that materially impact the…

A: Option A) Risk of Assessing Control Risk Too Low/Risk of Incorrect Rejection is incorrect because…

Q: Which of the following audit techniques would most likely provide an auditor with the least…

A: Effective Internal control will satisfy company objectives.  Internal controls will identify and…

Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

A: Auditing is the procedure of finding the errors and misstatements presented in the financial…

Q: When an auditor decreases the planned assessed level of control risk because certain control…

A: Audit report represents the report prepared by an auditor that shows the opinion of the auditor on…

Q: 7)  In an environment that is highly automated an auditor determines that it is not possible to…

A: Answer- Perform test of controls to support a lower level of assessed risk In an environment that is…

Q: When an audior increases the assessed level of control risk because certain control activities were…

A: Answer:   Option C.

Q: In determining the tolerable deviation rate for a test of controls, the auditors consider:…

A: The objective of the question is to understand the factors that auditors consider when determining…

Q: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

Q: After obtaining an understanding of an entitiy's internal control, an auditor may assess control…

A: Solution: After obtaining an understanding of an entitiy's internal control, an auditor may assess…