Discuss audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions. How do they differ?

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: What is the risk caused by the sample taken by the Auditor that does not describe the…

A: Audit sampling is the audit procedure in which sample is selected to test the whole data or…

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: Discuss the differences between a first-party, second-party, and third-party audit.

A: The first-party audit is also known as internal audits. This is performed by internal audit…

Q: Ordinarily, risk assessment procedures do not involve the use of audit sampling. However, the…

A: The purpose of audit risk assessment is to gain a better understanding of Organisation and its…

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: Describe a situation that would require an auditor to give an unmodified opinion without a standard…

A: Introduction: Unmodified opinion generally gives when the financial statements showing as fairly. It…

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: Audit sampling for tests of controls is generally appropriate when the application of the control…

A: Solution:- Introduction:- Audit sampling may be defined as ‘the application of audit procedures to…

Q: i need the answer quickly

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

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: The audit report provides reasonable assurance that thefinancial statements are free from material…

A: Introduction Audit report: The auditor's report expresses the auditor's judgment about the accuracy…

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: Attribute sampling is a statistical technique used in audit procedures to examine the…

A: Whether or not official signatures appear on all checks depends on the specific control procedures…

Q: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

Q: Attribute sampling enables the auditor to directly assess whether a rule is operating successfully…

A: Monetary unit sampling is a statistical sampling method used in auditing to test the accuracy of…

Q: What are the risks if the auditor concludes controls are operating effectively based on the sample…

A: Definition:   Sampling risk: Sampling risk is a risk that arises when the judgments based on the…

Q: maximur

A: the auditor after considering the client's internal control over receivables increased the…

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: 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: A considerable portion of the tests of controls and substantive tests of transactions are performed…

A: Auditing is basically an inspection or checking of books of accounts maintained by the business.…

Q: S1: Stratification in audit sampling enables the auditor to direct his efforts towards the items he…

A: solution concept stratification means method of dividing the data into different groups so that the…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Q: The competence (reliability) of audit evidence cannot be improved by testing a larger sample of…

A: Audit Evidence: Audit evidence are the supportive documents of the transaction on the basis of these…

Q: Audit evidence obtained through inquiry of management about proper segregation of custodianship and…

A: Solution Reliability of audit evidence The reliability of audit evidence shall be considered based…

Q: Auditors often use a client's historical experience and subsequent transactions to evaluate the…

A: Auditors are responsible for the checking accounts and see that they are prepared with as per…

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: In audit sampling applications, sampling risk isa. A characteristic of statistical sampling…

A: Answer:   Option d