8 Answer is not complete. a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements Risk assessment O Materiality b. Obtaining an understanding of the client's business and industry. Risk assessment X Planning and supervision C. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. Audit evidence Materiality X Reasonable assurance d. Obtaining confirmations from the client's customers as to the ending balances in accounts Audit evidence receivable. e. Preparing a written audit plan. Planning and supervision Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. Considering the likelihood that the account balance contains a material misstatement. Materiality X Planning and supervision g. Risk assessment O Audit evidence O Materiality Failing to detect material misstatements because of audit team mistakes and misinterpretations in h. evaluating evidence. Audit evidence X Risk assessment
8 Answer is not complete. a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements Risk assessment O Materiality b. Obtaining an understanding of the client's business and industry. Risk assessment X Planning and supervision C. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. Audit evidence Materiality X Reasonable assurance d. Obtaining confirmations from the client's customers as to the ending balances in accounts Audit evidence receivable. e. Preparing a written audit plan. Planning and supervision Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. Considering the likelihood that the account balance contains a material misstatement. Materiality X Planning and supervision g. Risk assessment O Audit evidence O Materiality Failing to detect material misstatements because of audit team mistakes and misinterpretations in h. evaluating evidence. Audit evidence X Risk assessment
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Completing A Quality Audit
Section: Chapter Questions
Problem 4CYBK
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Can you help me identify which of the performance principles of GAAS apply to each of these? I am not sure what I am missing.
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