AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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Question
Chapter 6, Problem 6.23MCQ
To determine
Concept Introduction:
Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.
Audit risk has its three components; inherent risk, control risk, and detection risk.
To choose: The control on which the auditor will initially focus.
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Students have asked these similar questions
The internal audit function is part of what element of the internal control system?
a.Risk assessment
b.Control activities
c.Control environment
d.Monitoring
Consider the “control environment.” Asses why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls?
Following is a list of internal controls. Select the COSO component that best matches each internal control.
Internal control
a. Implementation of policies to reduce risk of internal control failure.
b. Reporting of internal control effectiveness to investors.
c. Evaluation of internal control effectiveness by external auditors.
d. Identification and management of risks.
COSO
Control activities
Information & communication
Monitoring
Risk assessment
Control environment
Assessm
Chapter 6 Solutions
AUDITING+ASSURANCE SERVICES (LL)
Ch. 6 - Prob. 6.1RQCh. 6 - Prob. 6.2RQCh. 6 - Prob. 6.3RQCh. 6 - Prob. 6.4RQCh. 6 - Prob. 6.5RQCh. 6 - Prob. 6.6RQCh. 6 - Prob. 6.7RQCh. 6 - Prob. 6.8RQCh. 6 - Prob. 6.9RQCh. 6 - Prob. 6.10RQ
Ch. 6 - Prob. 6.11RQCh. 6 - Prob. 6.12MCQCh. 6 - Prob. 6.13MCQCh. 6 - Prob. 6.14MCQCh. 6 - Prob. 6.15MCQCh. 6 - Prob. 6.16MCQCh. 6 - Prob. 6.17MCQCh. 6 - Prob. 6.18MCQCh. 6 - Prob. 6.19MCQCh. 6 - Prob. 6.20MCQCh. 6 - Prob. 6.21MCQCh. 6 - Prob. 6.22MCQCh. 6 - Prob. 6.23MCQCh. 6 - Prob. 6.24MCQCh. 6 - Prob. 6.25PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31P
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Similar questions
- Which of the following is NOT an SDLC controllable activity? a. External audit participation b. User specification c. Systems authorization d. User test and acceptance procedures e. All are SDLC controlsarrow_forwardPlace the auditor's activities to assess control risk in the proper order: Group of answer choices Walkthrough, flowchart, tests of controls Flowchart, significant deficiency, audit committee Flowchart, walkthrough, tests of controls Walkthrough, narrative, tests of controlsarrow_forwardDiscuss and give examples of the various tools to document control risk assessment – such as narratives, flowcharts and checklists. Discuss the term audit programs – what are they and why are audit programs important to the audit process? Please provide references if there is any.arrow_forward
- Consider “control environment.” Why it is important for auditors to understand a client’s control environment. What are some limitations of internal controls? Now consider “segregation of duties.” Determine why it is important in an IT environment. What are some advantages of using IT and audit software when conducting an audit?arrow_forwardWhat is the audit risk model? Explain the elements of the modelarrow_forwardAfter obtaining a sufficient understanding of internal control, the auditor: a. Determines the preliminary assessment of control risk b. Determine the assessed levels of detection risk and inherent risk c. Assess detection risk to determine the acceptable level of inherent risk d. Assess the need to apply GAASarrow_forward
- ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate risks to an acceptable level is part of which component in the COSO Framework? a. Control environment b. Risk assessment c. Control activities d. Monitoringarrow_forward1. What are objectives? What three categories of objectives are set forth in the COSO framework? 2. What does the control environment comprise? 3. What are control activities? What types of control activities are present in a well-designed system of internal controls? 4. When are monitoring activities most effective? Who performs monitoring activities? What distinguishes separate evaluations from ongoing monitoring activities? 5. How does internal auditors' perspective of internal control differ from management's perspective? 6. How does COSO define risk? How does ISO define risk? 7. What are the five COSO ERM components? 8. How does COSO define risk appetite? 9. What are some ERM assurance activities the internal audit function may perform? What are some ERM consulting activities the internal audit function may perform if appropriate safeguards are implemented? What ERM activities should the internal audit function not perform? 10. What are COSO's five categories of risk…arrow_forwardAudit procedures designed to evaluate the operating effectiveness of controls to prevent, detect, or correct material misstatements are known as organizational structure. O control testing. O commitment to competence. O management's philosophy and operating style.arrow_forward
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