KINDLY ANSWER THE TRUE OR FALSE PART NUMBER 4 AND 5. THANK YOU! A Auditing (2021-2022) 3-BO Microsoft Word - Auditing_Assig x4 Chapter 3_Auditor's Responsibilit x +O File | C:/Users/Owner/Downloads/Auditing_Assignment%201_092021.pdfError :MMicrosoft Word - Auditing_Assignment 1_To be printed1 /1||+ |67%Assignment 1Auditing and Assurance PrinciplesInstructions: Answer them in your own words. Don't rely too much on copy pasting since our google classroomhas a anti-plagiarism function. Good luck!1. In assessing the probability of fraud, the auditor considers two types. Identify and define these twotypes of fraud. What is the auditor's responsibility for detecting fraud? (5 pts)2. Contrast the circumstances in which the auditor would choose not to test controls with those in which heor she would perform tests of controls. (5 pts)13. The internal control framework developed by coso includes five so-called "components" of internalcontrol. Discuss each of these five components. (5 pts)4. Adequate separation of duties is an important control activity. Discuss the four general guidelines forseparation of duties to prevent both intentional and unintentional misstatements that are of significanceto auditors. (5 pts)5. Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planneddetection risk, tolerable misstatement, and planned evidence, state the effect on planned evidence(increase or decrease) of changing each of the following factors, while the other factors remainunchanged. (5 pts)1.An increase in acceptable audit risk.An increase in inherent risk.A decrease in control risk.An increase in planned detection risk.2.3.4.5.An increase in tolerable misstatement.6. Discuss how auditors use the audit risk model when planning an audit. (5 pts)7. True or False (5 pts.)a. If, when obtaining an understanding of control activities of a relatively small client, the auditoridentified no control activities, the auditor would probably set a high assessment of control risk.b. When a company designs and implements internal controls, cost of the controls is not a validconsideration.c. Auditing standards prohibit reliance on the work of internal auditors due to the lack ofindependence of the internal auditors.d. When documenting their understanding of a client's internal controls, auditors are required to usenarratives.e. To issue an unqualified opinion on internal control over financial reporting, there must be noidentified material weaknesses and no restrictions on the scope of the audit.09:39 PMSearch the web and WindowsM22/09/2021日

Question

KINDLY ANSWER THE TRUE OR FALSE PART NUMBER 4 AND 5. THANK YOU! A Auditing (2021-2022) 3-BO Microsoft Word - Auditing_Assig x4 Chapter 3_Auditor's Responsibilit x +O File | C:/Users/Owner/Downloads/Auditing_Assignment%201_092021.pdfError :MMicrosoft Word - Auditing_Assignment 1_To be printed1 /1||+ |67%Assignment 1Auditing and Assurance PrinciplesInstructions: Answer them in your own words. Don't rely too much on copy pasting since our google classroomhas a anti-plagiarism function. Good luck!1. In assessing the probability of fraud, the auditor considers two types. Identify and define these twotypes of fraud. What is the auditor's responsibility for detecting fraud? (5 pts)2. Contrast the circumstances in which the auditor would choose not to test controls with those in which heor she would perform tests of controls. (5 pts)13. The internal control framework developed by coso includes five so-called &#34;components&#34; of internalcontrol. Discuss each of these five components. (5 pts)4. Adequate separation of duties is an important control activity. Discuss the four general guidelines forseparation of duties to prevent both intentional and unintentional misstatements that are of significanceto auditors. (5 pts)5. Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planneddetection risk, tolerable misstatement, and planned evidence, state the effect on planned evidence(increase or decrease) of changing each of the following factors, while the other factors remainunchanged. (5 pts)1.An increase in acceptable audit risk.An increase in inherent risk.A decrease in control risk.An increase in planned detection risk.2.3.4.5.An increase in tolerable misstatement.6. Discuss how auditors use the audit risk model when planning an audit. (5 pts)7. True or False (5 pts.)a. If, when obtaining an understanding of control activities of a relatively small client, the auditoridentified no control activities, the auditor would probably set a high assessment of control risk.b. When a company designs and implements internal controls, cost of the controls is not a validconsideration.c. Auditing standards prohibit reliance on the work of internal auditors due to the lack ofindependence of the internal auditors.d. When documenting their understanding of a client's internal controls, auditors are required to usenarratives.e. To issue an unqualified opinion on internal control over financial reporting, there must be noidentified material weaknesses and no restrictions on the scope of the audit.09:39 PMSearch the web and WindowsM22/09/2021日

Accepted Answer

The books of accounts are required to be audited by the auditor so as to check whether the…

d. When documenting their understanding of a client's internal controls, auditors are required to use narratives. e. To issue an unqualified opinion on internal control over financial reporting, there must be no identified material weaknesses and no restrictions on the scope of the audit.