Analytical procedures used as substantive test focuses on detecting material misstatements. S2: The responsible party always prepare a representation that will be subjected to the validation of the practitioner. Group of answer choices Only S1 is correct. Only S2 is correct. Both S1 and S2 are correct.

Analytical procedures used as substantive test focuses on detecting material misstatements. S2: The responsible party always prepare a representation that will be subjected to the validation of the practitioner. Group of answer choices Only S1 is correct. Only S2 is correct. Both S1 and S2 are correct.

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

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 11CYBK

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Similar questions

A significant scope limitation, determined to be pervasive, existed during an audit. The CPA will likely issue what type of report? a. Qualified Disclaimer Adverse Yes No No b. Qualified Disclaimer Adverse No Yes No c. Qualified Disclaimer Adverse No Yes Yes d. Qualified Disclaimer Adverse Yes Yes No e. Qualified Disclaimer Adverse No No Yes
Which of the following regarding the level of materiality is correct? Select one: a. An increase in materiality will decrease the amount of substantive testing b. In order to decrease detection risk, the auditor would increase materiality. c. A higher risk of material misstatement will require an increase in materiality d. A decrease in materiality will result in a decrease in the cost of an audit
Which of the following statements is true regarding the sufficiency of evidence needed to test an account? a. Evidence sufficiency is a measure of evidence quality. b. Evidence sufficiency is affected by the quality of evidence. c. A relationship does not exist between evidence sufficiency and evidence quality. d. For a specific client, evidence sufficiency will be the same across all accounts.
Examine the information enunciated below carefully and identify the impact of increase in the assessed risk of material misstatement on timeliness of direction on review of audit work. a. Increase in the timeliness of direction and more detailed review of work O b. None of the options O c. Decrease in the timeliness of direction and more detailed review of work d. Neither increase nor decrease in the timeliness of direction and more detailed review of work
Which of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive analytical procedures are not required tobe performed on all audit engagements.b. If the results of substantive analytical proceduressuggest that an account balance is materially correct,the auditor can reduce the evidence needed fromtests of details.c. The auditor would perform substantive analyticalprocedures after tests of details.d. All of the above statements are true.