If the tests of controls indicate certain controls are not as effective as the auditor originally believed, which of the following will result? Select all that apply. O increased number of substantive procedures will be planned O audit planning strategy adjusted O control risk will be increased O detection risk is increased O increased number of control tests will be performed

Q: Auditors have not been successful in measuring the components ofthe audit risk model. How is it…

A:

Q: If an auditor believes the chance of financial failure is low and there is a corresponding increase…

A: Audit risks are mainly of three types: Inherent risk which is derived from the characteristics of…

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Q: If the auditor is unable to rely on the IT general controls or application controls of a client,…

A: Correct option is D. Control risk as high   If the auditor is unable to rely on the IT general…

Q: Obtain an understanding of the client’s external controls. All things equal, as the risk of…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: Which of the following increase control risk?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: Which of the following is appropriate about risk assessment? A. The assessed level of inherent and…

A: Risks are the unfavourable situations or circumstances that can make loss for the organisation or…

Q: This audit tool is very useful in alerting or identifying any deviations from normal expectations…

A: An audit tool, in general, is anything that auditors use to accomplish an audit.

Q: The assessment of control risk can be made at any of the following times except:

A: Correct option is B. After performing all the necessary substantive tests.

Q: Which of the following statements is correct regarding detection risk and the audit risk model? OA.…

A: Audit risk is a tool for auditor to evaluate various risks may arise while performing an audit.…

Q: When the auditor has assessed control risk of a particular area at a reduced level, he or she will…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: (A) The requirement is to find the best statement concerning an auditor’s assessment of…

A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…

Q: The following are concepts discussedin this chapter:1. Preliminary judgment about 7. Estimated total…

A: a. Following items are audit planning decisions that require professional judgment as follows: 1.…

Q: If the auditor uses the primarily substantive apporach instead of the lower control risk approach…

A: Control risk is one of the risk related to material misstatements in books of accounts in the…

Q: Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk,…

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Q: audit procedures

A: The first statement is false, the higher amount of evidence is required if there is higher…

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Q: If tests of controls induce the audit team to change the assessed level of control risk for fixed…

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Q: Auditing standards indicate that if the preliminary control risk assessment is low, the auditor then…

A: The selection of control by the auditor is based on assessing whether the entity's controls…

Q: (c) Using your knowledge of the relationships among acceptable audit risk, inherent risk, control…

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Q: a. Increase in the timeliness of direction and more detailed review of work O b. None of the options…

A: The correct answer is option d.)

Q: state the effect on planned evidence (increase or decrease) of changing each of 'AN INCREASE IN…

A: Audit Risk Audit risk which describes as auditors furnish the inappropriate audit opinion whether…

Q: performing test of controls,

A: Option a is wrong because the relationship between the assessed level of control risk and…

Q: The results of analytical procedures may identify previously unrecognized risk of material…

A: Analytical procedures: In obtaining the audit evidence, the auditor has to finally undergo…

Q: What factors do you think might cause an auditing team to spend more time than average on tests to…

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Q: In an environment that is highly automated, an auditor determines that it is not possible toreduce…

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Q: In most audits of large entities, control risk assessment contributes to audit efficiency,…

A:

Q: Which sentence below is true about audit risk:  A. Audit risk is the risk that a company may hire…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: An auditor's preliminary control risk assessment is at a high level. Which of the following are…

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Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

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Q: Which of the following risk types increase when an auditor performs substantive analytical audit…

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Q: Which of the following is least likely to be considered an appropriate response relating to risks…

A: assessing risks at financial statements level - - evaluation of period-end financial statements…

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A: Risk assessment, in simple words, is to closely observe and examine the possible vulnerabilities…

Q: Once the auditor detects a control deficiency, which of the following steps must be taken FIRST?…

A: Auditor must access the control risk to maximum level of relevant assertions. When the deficiencies…

Q: On the basis of audit evidence gathered and evaluated, an auditor decides to decrease the level of…

A: Answer: Option D. Decrease in the assessed control risk.

Q: When gathering data, an audit team identified both subjective and objective criteria for measuring…

A: Audit risk is the risk that auditor may give inappropriate opinion when financial statements are…

Q: Which of the following is not one of the tasks undertaken during the phase use of t of the audit? A)…

A: Auditing is an examination of financial data of any entity with a view to express an opinion thereon…

Q: In assessing control risk, an auditor selects from a variety of techniques, including A. Inquiry and…

A: Introduction: Auditing means a systematic examination of books to verify the authenticity and…

Q: On the basis of audit evidence gathered and evaluated, an auditor decides to increaseassessed…

A: (1) Increase in inherent risk will lead to an increase in audit risk level as they are directly…

Q: An auditor assesses control risk because it: A. is relevant to the auditor's understanding of the…

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Q: Which of the following is consistent with an assessed level of control risk at below the maximum…

A: solution concept control risk at below the maximum level               The control risk at below the…

Q: The tolerable rate of deviation set by the auditor for tests of controls depends primarily on which…

A: The auditor should determine the maximum rate of deviations from the prescribed control that he…

Q: Generally, which of the following audit procedures is the least expensive to perform?   A.…

A: Analytical procedures are the least expensive audit procedures to perform. Test of controls are…

Q: Auditors are required to obtain a sufficient understanding of each component of a client’s internal…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: In a non public audit (AICPA), auditors might chose to not test controls if Select an answer and…

A: As part of audit, it is based on the auditors judgement only to select the appropriate level of risk…