Risk of incorrect acceptance is defined as _______. the risk that the auditor concludes that a material misstatement does not exist when it does exist the risk that the auditor concludes that a material misstatement does exist when it does exist the risk that an audit firm incorrectly issued an unmodified opinion the risk that an audit firm incorrectly accepts a client The objective of auditors is to obtain _______. sufficient appropriate audit evidence regarding the assessed risks of material misstatement sufficient appropriate audit evidence regarding the assessed risks of immaterial misstatement sufficient appropriate audit evidence from internal control only regarding the assessed risks of material misstatement insufficient appropriate audit evidence regarding the assessed risks of material misstatement
Risk of incorrect acceptance is defined as _______.
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the risk that the auditor concludes that a material misstatement does not exist when it does exist |
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the risk that the auditor concludes that a material misstatement does exist when it does exist |
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the risk that an audit firm incorrectly issued an unmodified opinion |
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the risk that an audit firm incorrectly accepts a client |
The objective of auditors is to obtain _______.
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sufficient appropriate audit evidence regarding the assessed risks of material misstatement |
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sufficient appropriate audit evidence regarding the assessed risks of immaterial misstatement |
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sufficient appropriate audit evidence from internal control only regarding the assessed risks of material misstatement |
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insufficient appropriate audit evidence regarding the assessed risks of material misstatement |
When an adverse opinion is issued regarding internal control over financial reporting (ICFR), the auditor_______.
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opines that the company has fairly reported its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) |
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makes a clear statement that the company has not maintained effective internal control for the period under audit |
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makes a clear statement that the company has maintained effective internal control for the period under audit |
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is not entitled to receive full compensation for services rendered during the audit |
Risk of incorrect rejection is defined as _______.
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the risk that the auditor concludes that a material misstatement does not exist when it does exist |
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the risk that the auditor concludes that a material misstatement exists when it does not exist |
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the risk that an auditor incorrectly rejects a client |
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the risk that management may reject the audit opinion issued by the auditor |
- An advantage of statistical sampling _______.
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is that it allows an auditor to measure control risk |
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is that it allows an auditor to measure sampling risk |
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is that it allows an auditor to measure inherent risk |
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is that it is cheaper to perform, resulting in lower audit fees for the client |
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