Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy she should adopt? a) predominantly substantive audit approach b) control testing strategy c) combined audit strategy d) substantive year end testing

Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy she should adopt? a) predominantly substantive audit approach b) control testing strategy c) combined audit strategy d) substantive year end testing

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

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 24RQSC

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Question

Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy
she should adopt?
a) predominantly substantive audit approach
b) control testing strategy
c) combined audit strategy
d) substantive year end testing

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In considering the evidence needed to assess control risk during the period from interim to year-end, all of the following should be considered except the: A. Significance of the assertion being tested. B. Control risk on other assertions. C. Specific internal control policies and procedures tested during the interim period. D. Degree to which the policies and procedures were tested and the test reults.
After the audit planning procedures, your audit team decided to place the preliminary audit risk at a high level. Which of the following is correct? A. The risk the planned further audit procedures will not be able to detect misstatement should be increased. B. The auditors should plan set the timing of its extensive substantive testing at year-end. C. The audit materiality levels should be increased. D. The auditors should plan extensive substantive testing through analytical procedures.
1. Which of the following procedures is most appropriately done if the control risk and inherent risk was assessed at a below maximum level where the management does not have effective internal controls in place? * Omit test of controls, then perform substantive testing at year-end Perform tests of controls, then perform substantive testing at year-end Perform tests of controls, then perform substantive testing at an interim period Omit test of controls, then perform substantive testing at an interim period 2. In auditing the financial statements of ESELYU Inc., the management has deliberately precluded you from gathering evidence in one of its cash accounts which you perceive to be material in regards to the audit. Which of the following audit opinion are you most likely to express? * Qualified opinion if the item is material and pervasive Unqualified Opinion if the item is material and…