10 Audit risk may be considered as the product of Inherent risk, control risk and detection risk. What is the implication of increase in control risk on the audit risk? a. Audit risk reduces b. Unable to decide c. Audit risk remains unaffected d. Audit risk increases

10 Audit risk may be considered as the product of Inherent risk, control risk and detection risk. What is the implication of increase in control risk on the audit risk? a. Audit risk reduces b. Unable to decide c. Audit risk remains unaffected d. Audit risk increases

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 17MCQ

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Audit risk may be considered as the product of Inherent risk, control risk and detection risk. What is the implication of increase in control risk on the audit risk?

Audit risk reduces

Unable to decide

Audit risk remains unaffected

Audit risk increases

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11-Audit risk may be considered as the product of Inherent risk , control risk and detection risk . What is the implication of increase in control risk on the audit risk ? a . Audit risk reduces b . Audit risk remains unaffected c . Unable to decide d . Audit risk increases
True or false 9. The control risk is the risk of auditors fail to detect material misstatement leads to detection risk. Explain why?
3.Residual risks are not: Group of answer choices Unaddressed risks Unmanaged risks Mitigated risks None of the choices Net risks 4. Recommendations should be included in final audit communications to: Group of answer choices Ensure that problems are resolved in the manner suggested by the auditor Provide management with options for addressing audit observations Minimize the amount of time required to correct audit observations Guarantee that audit observations are addressed, regardless of cost
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26. The following are the roles that internal auditors that should not undertake in risk management except: Group of answer choices Setting the risk appetite Imposing risk management processes Evaluating the reporting of key risks Management assurance on risks
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The audit risk model consists of: AR = IR x CR x DR. The detection risk is the dependent variable. What is the acceptable level of detection risk if the assessed level of inherent risk is HIGH and the control risk is MEDIUM? Group of answer choices a.Lower b.Medium c.Lowest d.Higher
13. In performing test of controls, which of the following questions IS NOT the concern that needs to be answered? a. What is the relationship between the assessed level of control risk and substantive testing? b. Who is the External Auditors? c. When was the control performed? d. Who performed the control? e. Was the control consistently applied?