The likelihood that material misstatements may have entered the accounting system and notbeen detected and corrected by the client’s internal control is referred to asa. Inherent risk.b. Control risk.c. Detection risk.d. Risk of material misstatement.

Q: The tem

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

Q: Assertions with high inherent risk are least likely to involve  a. complex calculations b.…

A: Routine transactions doesn't have assertions with high inherent risk.

Q: Which of the following tests are considered further audit procedures that may be designed after…

A: Substantive test of details are considered further audit procedures that may be designed after…

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

A: The Correct Option is C

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 statement is false

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A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

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A: Internal controls are the rules and regulations laid down by the management which must be followed…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: A) Consider the likelihood that identified risks could result in material misstatement B) Identify…

A: In order to assess Control Risk/the risk of material misstatement, the auditor would complete all of…

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

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: The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable…

A: Audit evidence refers to all sorts of information, or bunch of documents or any sort of data…

Q: risk remaining after management’s actions is

A: Option A is wrong because inherent risk is the risk of fraud or error which may exist even if the…

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: Why deos the auditor obtain an understanding of the clients business, enviroment and related risk of…

A: Obtaining an understanding of the client’s business is key to an effective and efficient audit.…

Q: maximur

A: the auditor after considering the client's internal control over receivables increased the…

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: A reason to believe that a fraud has occurred is calleda. Deliberation.b. Forensics.c.…

A:

Q: Internal control is designed to provide: : A Certainty. B Freedom from fraud. C Reasonable…

A: Internal control is very useful and important for every business. It means those procedures which…

Q: When an audior increases the assessed level of control risk because certain control activities were…

A: Answer:   Option C.