Recall the definition of inherent risk. Why is it important for internal auditors to focus on inherent risk during the planning phase of an assurance engagement?

Q: Critical evaluation of importance of auditor independence

A: Auditors are expected to provide a candid and knowledgeable evaluation of the work they evaluate. If…

Q: In terms of an audit, define " substantive strategy " and " reliance strategy ". How do the…

A: Audit strategy refers to a strategy that guides the audit plan. It refers to the combination of…

Q: This term is synonymous with acceptable audit risk.

A: Explanation and answer is given below,

Q: During financial statement audit, auditors seek to restrict which type of risk?   Control risk,…

A: Discovery hazard is the opportunity that an inspector will neglect to discover material misquotes…

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

A: The Correct Option is C

Q: With respect to an audit, which of the following is not a risk assessment procedure?  Analytical…

A: Risk assessment procedureThe risk assessment procedure is one of the audit procedures which are…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: Why is it vital to retain periodic records as part of the risk management process

A: Risk management Managing the risk related to an organization is known as risk management. It is a…

Q: What is the role of internal audits in assessing the effectiveness of control procedures and…

A: Internal audits are independent and objective assessments conducted within an organization to…

Q: Must all observations identified by an internal audit team during an assurance engagement be acted…

A: Internal auditing is an unbiased, impartial assurance and consultation process intended to enhance…

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: If control risk is assessed at the maximum, the auditor is required to obta knowledge about the:…

A: Lets understand the basics.Control risk is a risk which arise due to failing of control mechanism of…

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: 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: Discuss the auditor's risk assessment procedures for assessing control risk, and provide specific…

A: Risk assessment means to manage the risks related to the organization and taking corrective actions…

Q: In obtaining audit evidence, the auditor should use professional judgment to assess the risk of…

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

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…