The auditor’s risk assessment procedures identified severalrisks that the auditor deems to be significant risks. Several internal controls exist thatare designed to mitigate the risks identified. Describe the auditor’s responsibilities forconsidering those controls in the current audit.

The auditor’s risk assessment procedures identified severalrisks that the auditor deems to be significant risks. Several internal controls exist thatare designed to mitigate the risks identified. Describe the auditor’s responsibilities forconsidering those controls in the current audit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Describe the audits and auditors ingovernmental, internal, and operationalauditing.

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: In determining the operating effectiveness of the internal control policy or procedure, the auditor…

A: The internal controls refer to the mechanism implemented in the organization to ensure that the…

Q: Which of the following internal control components involves the ongoing evaluation of the…

A: Internal controls are implemented to prevent fraud in the organization. These are the rules or…

Q: List and describe the required preengagement activities that auditors undertake before beginning an…

A: Pre-engagement activities: The summary of risk assessment procedure that need to be performed before…

Q: Auditors obtain reasonable assurance that financial statements are fairly stated by performing all…

A: Reasonable assurance is the term of auditing which states the level of the assurance auditors are…

Q: Depending on the severity of the audit issue, follow- Re-auditing the processes that originally led…

A: In an audit process, the following activities are involved: Planning Fieldwork Reporting or…

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: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: It is a primary environment of a company to engage in the audit process in an effective manner. This…

A: Independent auditor plan, reports as well as conduct the outcome of the audit under GAAS ( Generally…

Q: Which of the following is part of phase III of the audit process, which is responding to assessment…

A: Answer: C) Asses the risk or material misstatement

Q: Documentation of risk assessment procedures and responses to risks of misstatement should include…

A: Risk assessment procedures are audit procedures performed to obtain an understanding of the client…

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's focus:…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: discussed in the chapter, the results of test of control should ultimately influence the auditors…

A: Internal control refers to a system of policies, procedures, and practices established and…

Q: For auditors, the term materiality is important, both at the planning stage of the audit and at the…

A: Materiality is a concept in accounting refers to that all the material facts / items should be…

Q: When testing IT controls, which of the following BEST (select one) describes the IT auditor's…

A: IT controls audit is the process of evaluating an organization's IT controls to determine their…

Q: The following information is available for Birch Company at December 31: Cash in registers…

A: Cash and cash equivalents refer to the most liquid assets that a company or individual owns, which…

Q: he auditor should document the overall audit strategy and the audit plan, including any significant…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS CORRECT ANSWER: Statement of changes in equity WHILE…

Q: Once the overall audit strategy has been established, what can be developed to address the various…

A: Audit strategy is prepared by the auditor which helps in planning the audit. It includes the time…

Q: Which among the following is not a major purpose of onsite fieldwork conducted by the auditor as a…

A: The fieldwork consists of examining the risks involved in processes, evaluation of internal controls…

Q: Planning phase enables the auditor to obtain all the relevant background information to gain an…

A: The planning phase is the first phase of the audit process. It is the phase in which the objectives…

Q: The auditor is most likely going to perform audit data analytics (ADA) as a substantive test when…

A: The test of control represents that the auditor is identifying the errors and misstatement presented…

Q: The particular and specialized actions that auditors take to obtain evidence during a specific…

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial…

Q: Required: When evaluating internal control design effectiveness during the internal control over…

A: Types of Financial Statement Assertions:Existence/Occurrence: This assertion confirms that assets,…

Q: determine if statement 1 and 2 are true or false 1 - The overall audit strategy sets the scope,…

A: 1 - The overall audit strategy sets the scope, timing, and direction of the audit, and guides the…

Q: Identify the correct order of steps for an auditor when applying a top-down approach to select…

A: The top-down approach is used to detect risks in the internal controls and gain an overall…

Q: Explain what is included in the risk assessment section of the audit file and the purpose of each…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: If recommendations are made to the audit report noted problems and weaknesses, written responses…

A: When recommendations are made to the audit report noted problems and weaknesses, written responses…

Q: The auditor should assess control risk for each relevant assertion by evaluating the evidence…

A: Relevant assertion: The assertion that shows the possibility of happening a material misstatement is…

Q: ss risk and the audit's preliminary analytical procedures? c) When preparing an audit engagement,…

A: Business Risk associated with Audit: A business risk is an occurrence, incident, or condition that…

Q: termine both the relationship of risks in the planning of the audit and factors that influence those…

A: An audit is when an auditor examines or inspects various books of accounts, followed by a physical…

Q: The auditor shall develop an audit plan that shall include a description of: The nature, timing and…

A: Audit plan plays an important factor during the course of an audit. Before conducting an audit, an…

Q: A service organizations has an auditor issue one of two types of reports on their operations: 1)…

A: Service organization It is organization which have not started for the sole purpose of making…

Q: Windsor Enterprises provides the following information relative to its defined benefit pension plan.…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: The main objective of audit planning is to ensure appropriate attention is given to all areas of the…

A: Audit means checking and examining the accuracy and authenticity of financial statements by…

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: describe the objective of audits of fi nancial statements, the types of audit reports, and…

A: The main objective of a financial report audit is to enable auditors to re-examine the financial…

Q: Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Which one of the following section of the auditor's report gives a description of an audit conducted…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

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.

Question

The auditor’s risk assessment procedures identified several
risks that the auditor deems to be significant risks. Several internal controls exist that
are designed to mitigate the risks identified. Describe the auditor’s responsibilities for
considering those controls in the current audit.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit Strategy, Audit Planning and Audit Programme

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The audit process may be divided up into four phases. At which phase would the auditor normally evaluate the integrity of management and consider ethical requirements? Select one: a. Conduct the audit. b. Plan the audit. c. Pre-engagement d. complete the audit
Describe the four phases performed by the auditor when obtainingan understanding of internal control and assessing control risk.
Explain how analytical procedures are useful in: (1) The risk assessment stage of the audit. (2) The substantive procedures stage of the audit. (3) Near the end of the audit.
Explain the circumstances when the auditor should revise the components of the audit risk model and the effect of the revisions on planned detection risk and planned evidence.
As an auditor of ABC Co, apply auditing principles and standards examine the expectation gaps in the context of audit and assurance assignment by:
According to professional standards, an auditor is required to perform audit procedures that are designed to Multiple Choice O test the controls that have been designed to ensure that the information is complete and accurate. test the completeness and accuracy of the information using substantive testing procedures. test the controls that have been designed to ensure that the information is complete and accurate and those that have been designed to ensure that the information is complete and accurate. test the controls that have been designed to ensure that the information is complete and accurate or that have been designed to ensure that the information is complete and accurate.
d) Name the four types of tests auditors normally perform in an audit after risk assessment is done.
An Auditor must perform audit procedures in order to obtain sufficient appropriate audit evidence before issuing a audit report.Discuss what substantive audit procedures are giving examples.
Analytical procedures are required as a part of the: Internal control assessment. Detailed tests of balances. Procedures performed near the end of the audit. Substantive testing.
Direction: summarize each step of the risk-based audit process. Testing of ControlsPerforming substantive proceduresOverall review of the financial statementsIssuing audit report
The auditor shall plan the audit so that in can be performed effectively. The auditor shall study and evaluate the internal control system of the client to express an opinion about the operating effectiveness of such internal control system Group of answer choices False, True False, False True, True True, False
While planning a specific audit, the PRIMARY purpose of assessing risks of the area under review is to provide reasonable assurance that material items will be adequately covered during the audit work. a) True b) False