S1: Stratification in audit sampling enables the auditor to direct his efforts towards the items he considers would potentially contain the greater monetary error. S2: When performing substantive procedures, an account balance or class of transactions is often stratified by monetary value.    a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE

Q: Q. If the auditor traces a sample of receiving reports to the inventory records, the auditor is…

A: The objective of the question is to determine whether the statement is true or false. The statement…

Q: The tem

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

Q: The risk of incorrect rejection and the risk of underreliance relate to thea. Effectiveness of the…

A:

Q: If an analytical procedure confirms audit findings from other procedures, it provides persuasive…

A: Solution concept                 analytical procedure means the procedure of comparing the…

Q: The auditor attempts to correct for the risk of under-auditing (ineffectiveness) and over-auditing…

A: Auditing is the process of examining financial statements, records, and other financial information…

Q: 2. Based on your review of the account receivable - test of control procedures (workpapers AR.2.1 to…

A: Introduction:- In this scenario, we are presented with a situation where an auditor has reviewed the…

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: analytical procedures

A: Analytical procedures are comparing the performance of the client over periods or other entities to…

Q: Which one below is not an example of auditors'substantive testing? Select one: a. Controls testing.…

A: Substantive testing is such an audit procedure that is used for examination of financial statement…

Q: An auditor simply compares a current year balance with the prior year balance in order to help…

A: To identify trends, analysing the data of just one year and compare it with current year will not be…

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

A: The Correct Option is C

Q: As auditors expect certain accounts to have more misstatements than others, both overstatements and…

A: Answer:-  Auditing:- In order to confirm that a process or quality system is operating in accordance…

Q: s1: The only way to know with certainty whether a sample Is representative is to subsequently audit…

A: Option (c) is the correct answer i.e. s1 and s2 are true

Q: factor to be considered by an auditor while performing analytical procedures?

A: Option a is wrong because it is a correct statement. Auditor will procure an expected amounts or…

Q: STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of…

A: Audit sampling is a process or procedure in which a sample of items are selected from the total…

Q: which of the following is correct about the appropriateness of evidence? A. Audit evidence from…

A: Audit is the process of checking the financial statement and identifying the errors and…

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: The objective of the auditor is to plan the audit so that it will be performed in an effective…

A: Audit is a sort of examination which is conducted to check the accuracy of the statements of an…

Q: S1: One of the elements of audit planning process most likely to be agreed upon with the client…

A: The question is related to Auditing. Audit planning process is the steps that are to be followed by…

Q: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…

A: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…

Q: t is generally acceptable for analytical procedures to be the only audit procedure used to test…

A: solution concept analytical procedure               Analytical procedure used as a audit procedure…

Q: When making a decision about the dollar amount in an account balance based on a sample, the audit…

A:

Q: If the _______ is less than the _______, the audit team would conclude that the account balance is…

A: Misstatement: It can be defined as the variations between the actual financial statements being…

Q: = appropriateness of audit evidence

A: An audit evidence is said to be appropriate when it enables the auditor to express an unbiased and…

Q: The risk of a material misstatement in the financial statements arising due to error or omission as…

A: Error or Omission is an unintentional mistake which leads to risk of material misstatement in the…

Q: Explain why the analysis of differences is important in the confirmation of accounts receivable,…

A: Every business sells goods on credit. The goods sold on credit are known as accounts receivable or…

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: Catena's Marketing Company has the following adjusted trial balance at the end of the current year.…

A: Balance sheet refers to the financial statement which shows the assets, liabilities and…

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

A: The given statement is true...

Q: true when the auditor determines the client has a low risk of material

A: First option is wrong because risk of material misstatements is judged not only based on the…

Q: audit risk.

A: First option is wrong because the inherent risk is the risk of material misstatements that may exist…

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: 1: The concept of materiality would be very important to an auditor in determining transactions that…

A: In auditing, materiality is an amount assessed by the auditor that defines tolerable level of…

Q: Which of the following costs is a mixed cost?   a.straight-line depreciation on factory equipment…

A: Mixed cost means cost that includes both fixed and variable cost. Based on the activity levels cost…

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: means the application of audit procedures to less than 100% of the items within an account balance…

A: Correct is Option C - Audit Sampling Audit sampling Means application of Audit procedures to less…

Q: kelihood tha ements in ar cing the effe ffe

A: The right answer is option b. Control risk

Q: Which of the following does NOT accurately describe the concept of materiality? O performance…

A: The Materiality refers to the relevance, accuracy and reliability of the financial statements of thr…