Matters that could affect the necessary extent of testing for a control activity as it related tothe degree of auditor reliance on a control activity would not include the following:a. The frequency of the performance of the control by the company during the period being audited.b. The length of time that the auditor is planning to rely on the operating efficiency of thecontrol activity.c. The expected rate of deviation for a control activity.d. The relevance and reliability of the

Q: What will the auditor NOT consider when reaching a conclusion on the results of substantive…

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

Q: Which of the following does NOT accurately describe detection risk? assessed as low when control…

A: The risk that the financial statements of an entity include material misstatements is referred to as…

Q: The preliminary assessment of control risk includes all the following procedures except Consider the…

A: Preliminary assessment of control risk is the process of evaluating the likely effectiveness of an…

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: 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: Ordinarily, risk assessment procedures do not involve the use of audit sampling. However, the…

A: The purpose of audit risk assessment is to gain a better understanding of Organisation and its…

Q: Many auditors assert that certain audit tests can be significantlyreduced for clients with adequate…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

Q: After considering the client's internal control the auditors have concluded that it is well designed…

A: WHEN AUDITOR FINDS INTERNAL CONTROL TO BE EFFECTIVE , HE REDUCES THE SUBSTANTIVE PROCEDURE . IT…

Q: If the tests of controls indicate certain controls are not as effective as the auditor originally…

A: Test of controls are performed  to determine the effectiveness of the control to detect and correct…

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: 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: What is the tolerable rate of deviation? How does the audit team use it when deciding whether torely…

A: Tolerable rate of deviation: Tolerable rate of deviation is the maximum rate of deviation is used by…

Q: Examine the information enunciated below carefully and identify the impact of increase in the…

A: The first step in conducting audit is the assessment of audit risk inherent to the business which…

Q: EXPLAIN.Which of the following is not done by an auditor when obtaining an understanding of an…

A: Internal controls are the mechanisms and standards that businesses use to protect their sensitive…

Q: Which of the following is not a benefit claimed for the practice of determining materiality inthe…

A: The audit is an independent review of an entity's business records. The objective of audit is the…

Q: Why do auditors typically test internal controls at an interim audit date? O more effective to test…

A: Interim testing is the testing performed by a company typically at some point close to year-end. A…

Q: an auditor finds any misstatements or deviations in planned procedures: a. the auditor should not…

A: When an auditor finds any misstatements or deviations in the financial statements then the auditor…

Q: explain .After documenting internal control in an audit engagement, the auditor may perform tests on…

A: The following tests that the auditor might perform are presented in the order of the evidence that…

Q: Matters that could affect the necessary extent of testing for a control activity as it related to…

A: Auditor: An auditor is a person who is accountable for preparing and examining financial records.…

Q: An auditor is examining a nonpublic company’s inventory procurement system and has decided to…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: If an audit of any of these companies is performed according to the AICPA auditing standards, and…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified 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: In an environment that is highly automated, an auditor determines that it is not possible toreduce…

A:

Q: TRUE OR FALSE When sampling is used by an auditor, an element of uncertainty is present in the…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An organization has a mature control environment but limited audit resources. Given this scenario,…

A: Audit:   It is an examination of the financial statements of the company. It helps in determining…

Q: Which of the following describes the circumstances that exist when an auditor assesses control risk…

A: Solution Concept Control risk means the risk that the internal controls that are required to prevent…

Q: aterial misstatement exists when it does not exist     the risk that an auditor incorrectly…

A: Risk of incorrect rejection is defined as   the risk that the auditor concludes that a…

Q: -8. Assume, that the auditor decideș to only, perform substantive tests of details when auditing the…

A: The Correct option is - (c) - It means in both the situations given in option (a) and in option (b)…

Q: Some audit procedures may be performed before the end of the reporting period. The more the auditor…

A: Auditing is done in order to know and get the report from the auditors that the financial statements…

Q: Which of the following statements is correct concerning analytical procedures used in planning an…

A: Analytical procedures:   Analytical procedures are the examination of the financial statements. The…

Q: A considerable portion of the tests of controls and substantive tests of transactions are performed…

A: Auditing is basically an inspection or checking of books of accounts maintained by the business.…

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: Which of the following does NOT accurately describe the concept of materiality? O performance…

A: The Materiality refers to the relevance, accuracy and reliability of the financial statements of thr…

Q: When an audior increases the assessed level of control risk because certain control activities were…

A: Answer:   Option C.

Q: The following information pertains to internal controls at company A and company B respectively.…

A: What is meant by test controls? It is an audit procedure conducted to ensure the effectiveness of…

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: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

Q: After obtaining an understanding of an entitiy's internal control, an auditor may assess control…

A: Solution: After obtaining an understanding of an entitiy's internal control, an auditor may assess…

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: For each of the above deficiencies, identify the possible impact on the company’s operation and…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

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: A. The risk the planned further audit procedures will not be able to detect misstatement should be…

A: Audit planning refers to the process of creating a strategy and the desired approach suitable needs…

Q: If inherent risk is high and a reasonable level of assurance has been gained from control testing,…

A: The inherent audit risk is a risk that exists due to any error or omissions in the financial…

Q: Study and Evaluation of Management Control. The study and evaluation of management risk mitigation…

A: Management Control:   The process of comparing the performance of the present year with the planned…

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…