n audit procedure designed to evaluate the operating effectiveness of controls in preventing or detecting and correcting, material misstatements is known as: a. a test of controls b. a test of details c. a dual purpose test d. ratio analysis

Q: The risk of incorrect rejection and the risk of underreliance relate to thea. Effectiveness of the…

A:

Q: The risk of material misstatement is composed of which audit risk components?a. Inherent risk and…

A: Audit risk: It is the probability that in the materially misrepresented financial statements, 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: Place the auditor's activities to assess control risk in the proper order: Group of answer choices…

A: Control risk refers to misstatement in financial statements that occur due to error and fraud and…

Q: True or false Tests of controls generally consist of combination of procedures such as inquiry of…

A: Auditing is the procedure in which the auditor checks and examines the financial statements of the…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: Compare the designs of your choice of two internal controls. Determine which is the preferred design…

A: Preventive control is the most important control out of the other internal controls because it…

Q: Why are weaknesses (lack of desired control procedures) not tested for compliance? Describe how…

A: Test for Compliance Procedures are merely tests that are designed to obtain reasonable assurance…

Q: Which of the following is part of phase III of the audit process, which is responding to assessment…

A: Answer: C) Asses the risk or material misstatement

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: 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: the susceptibility of an account balance or class of transactions to misstatements that could be…

A: Internal controls: Internal controls are maintained to decline the possibility of fraud. They ensure…

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: In a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher…

A: Management assertion: Management assertion refers to the claim made by the management ensuring the…

Q: For the given scenario, identify the weakness or weaknesses in internal control and opposite the…

A: Internal control is a process, performed by a board of directors of business, management and other…

Q: the procedures used to test the effectiveness of controls in support of a reduced assessed control…

A: Auditors generally test operating effectiveness of controls selected for testing by analysing that…

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: The risk of a material misstatement in the financial statements arising due to error or omission as…

A: Error or Omission is an unintentional mistake which leads to risk of material misstatement in the…

Q: performing test of controls,

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

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

A:

Q: Subject: internal auditing - needs to perform control testing

A: Introduction: Auditors have a wide range of instruments at their disposal while doing an audit for a…

Q: a. Identify the internal control weaknesses in this system. b. Describe the uncontrolled risks that…

A: Internal Control Weaknesses:   Internal control weaknesses can be defined as the lack of the…

Q: Statement 1: As part of obtaining an understanding of internal control, an auditor is required to…

A: Internal control: In order to gain a thorough understanding of the controls that are relevant to…

Q: Which of the following documenting the auditor's understanding of internal controls is the best:…

A: Internal controls are defined as the procedures, mechanisms and rules executed through company in…

Q: The combination of inherent risk and control risk refers to: Detection risk Audit risk Risk of…

A: The answer for above question is given below:

Q: Which of the following statements best describes the phrase, “evaluating the design of a control”?…

A: "Evaluating the design of control" means Considering whether the control, individually or in…

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: The internal audit function is part of what element of the internal control system? a.Risk…

A: Five elements of internal control system are: 1. Risk assessment 2. Control activities 3. Control…

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

A: Answer:   Option C.

Q: Audit teams use the test data method to gain certain assurances with respect toa. Input data.b.…

A: Under test data method, auditor submits dummy data into the system of the client. This is done to…

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: 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: 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: Explain what lapping means, and discuss the internal control deficiency that allows it to occur.…

A: Lapping: When cash is received from a debtor, the employee enters the transaction into the company's…

Q: Required For each of the questions above, answer the following: a) State the purpose of the internal…

A: Here asked for multi sub part question we will solve for first three sub part question for you.  If…

Q: ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate…

A: Audit Risk- Audit risk is the possibility that an auditor will issue an incorrect opinion on…

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: Which of the following service auditor reports provide evidence about the operating effectiveness of…

A: What are Service Organisation Controls(SOC) reports? A service organization controls (SOC) report is…

Q: auditor is able to rely on previous audits' assessments

A: In some cases, auditor may have to place reliance on the work done by the previous auditor or other…

Q: Which of the following is correct?       a.   Auditors should evaluate application controls before…

A: 1.Application controls These are manual or automated procedures that typically operates at a…