Identify and explain the three components of audit risk

Q: The tem

A: Audit engagement basically refers to the engagement of audit services that audit and audit’s clients…

Q: 3 types of misstatements

A: Misstatements are the under or over-statements of account balances or class of transactions…

Q: This term is synonymous with acceptable audit risk.

A: Explanation and answer is given below,

Q: Auditors need to identify audit risk in planning an audit engagement. In doing so, the audit risk…

A: Answer (a) – Audit Risk – Audit risk is a risk that the auditor may give inappropriate opinion when…

Q: Don't use chatgpt, I will 5 upvotes Objective Question: What term refers to the concept that…

A: The fundamental rules that regulate the careful examination of an organization's financial records…

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 statements best describes what is meant by the term appropriateness of audit…

A: Appropriateness is a criterion for how good audit evidence is, i.e. how relevant and reliable it is.…

Q: Discuss the audit expectation gap. Your answer should include the following: the main causes of the…

A: Audit expectation gap: The expectation gap is the difference among the actual and real roles and…

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: Which of the following statements is NOT accurate as it relates to testing and the audit risk? O…

A: auditor shall test the audit risk and perform the risk assessment procedure in order to determine…

Q: 8 Answer is not complete. a. Evaluating the effectiveness of the client's internal control in…

A: Risk Assessment: The  client’s internal  control  is evaluated to get the effectiveness of it. It is…

Q: Risk of incorrect acceptance is defined as _______.     the risk that the auditor concludes that a…

A: Risk of incorrect acceptance may be defined as situation where audit sample supports a conclusion…

Q: 2 The two main types of assurance level that auditors can perform are ________ and __________ High…

A: Audit is the detailed process of checking, verifying and assuring that all books of accounts are…

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: An auditor generally uses analytical procedures to obtain evidence regarding estimates. Question…

A: The given statement is true...

Q: Why is professional skepticism important when completing an audit? Please explain.

A: The objective of this question is to understand the importance of professional skepticism in the…

Q: What are the objectives of audit risk assessment, and why is it important in assessing the…

A: Given: The objectives of audit risk assessments and the importance of its assessment.

Q: Recall the definition of inherent risk. Why is it important for internal auditors to focus on…

A: The answer is given in the below step.

Q: The risk that the financial statements are materially misstated prior to audit refers to the risk of…

A: A material misstatement is a misstatement in the financial statements that could reasonably be…

Q: When gathering data, an audit team identified both subjective and objective criteria for measuring…

A: Audit risk is the risk that auditor may give inappropriate opinion when financial statements are…

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…