Risk assessment procedures are performed by auditors to: a. detect material misstatements in the financial statements. b. distribute the information needed to perform control activities. c. express an opinion on the financial statements. d. identify and assess the risks in achieving the entity’s objectives.

Q: Define risk of material misstatement. At what level of the financial statements do auditors measure…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Which of the following best describes the operational audit? Select one: a. It requires the constant…

A: Operational audit is the examination and verification of all the operations of the business…

Q: The objective of dual-purpose tests is to: A. Test internal controls as well as transactions and…

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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: Analytical procedures used in planning an audit should focus on identifying(1) material weaknesses…

A: Auditing: Auditing is the process by which assertions made by management about financial…

Q: Audit standards distinguish auditors’ responsibility for planning procedures for detecting…

A: Auditors have duty to distinguishing material error of budget summaries because of resistance with…

Q: The auditor shall communicate with those charged with governance an overall approach and scope of…

A: Auditor shall communicate to the management regarding its scope of audit.

Q: During financial statement audits, the auditors' consideration of their clients internal control is…

A: Financial Statement Audit - It is an examination of financial statement of and provide disclosures…

Q: high for all financial statements assertions, an auditor should document the auditor’s     A B…

A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in…

Q: Which of the following statements is not true with respect to the performance principle?a. Auditors…

A: Answer:   Option a.

Q: The auditor shall communicate with those charged with governance an overall approach and scope of…

A: The auditor shall communicate with those charged with governance an overall approach and scope of…

Q: A conceptually logical approach to the​ auditor's evaluation of internal control consists of the…

A: Please see Step 2 for required information.

Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…

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Q: TRUE OR FALSE? WHY? For purposes of examining the client's financial statements, the auditor is…

A: Solution Concept Internal control               Internal control is the process laid down by the…

Q: Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial…

A: Formal criteria used by auditors when carrying out audits of corporate financial reports are a…

Q: An auditor uses assessed control risk to(1) evaluate the effectiveness of the entity’s internal…

A: Answer:   Option (4)

Q: An audit strategy sets the direction, timing, and scope of an audit. Based on your audit knowledge,…

A: The audit is the process of checking and supervising the accounts that are maintained by the…

Q: This is a process of evaluating the effectiveness of a client's internal controls in preventing or…

A: INTERNAL CONTROL IS A MECHANISM WHICH IS IMPLEMENTED TO ENSURE THE INTEGRITY OF FINANCIAL AND…

Q: Internal control system comprises the company's policies, practices and procedures which are…

A: Auditing is a process of inspecting the financial accounts of a company in order to determine the…

Q: Fraud and error present risks to an entity. Both internal and external auditors are required to deal…

A: Auditing is a process of examining the internal control system and financial statements of the…

Q: When obtaining an understanding of the entity and its environment, including its internal control,…

A: The audit of the financial statement is required to be conducted so as to ensure that the financial…

Q: When planning the audit of internal controls for an issuer, the audit team shoulda. Identify…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: Analytical procedures used when planning an audit should concentrate ona. Weaknesses in the…

A: Analytical procedures are used by the auditors to analyze the accounts and transactions of the…

Q: Accounting Which of the following statements is true regarding the identification and assessment of…

A: While undertaking audit for a client, auditor shall try to identify the potential areas of risk to…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: Entity level controls are designed and placed in the operation once auditors determine that Select…

A: Entity levels controls are those internal controls which help in ensuring that the management…

Q: Which of the following is the independent auditor’s principal purpose for obtaining an understanding…

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Q: When auditors become aware of noncompliance with a law or regulation committed byclient personnel,…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: An audit program is usually prepared after establishing the audit strategy and developing the audit…

A: An audit program refers to the audit plan which is the plan that is documented with the procedures…

Q: If the auditor plans to assess control risk at less than the maximum and rely on controls, and the…

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Q: The most important objective of risk assessment procedures performed by auditor is a. To identify…

A: As per ISA 315 IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENTS: The most important…

Q: Auditing standards require that the engagement team members engage in discussion about the…

A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done by…

Q: Which of the following approaches is most suitable for auditing the finance and investment cycle?a.…

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Q: Which of the following is NOT a requirement in management’s report on the effectiveness of internal…

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Q: The main object of an audit is a. Expression of expert opinion b. Detection and Prevention of fraud…

A: THE MAIN OBJECTIVE OF AN AUDITOR IS TO  EXAMINES THE BOOKS OF ACCOUNTS OF A COMPANY THROUGH WHICH…

Q: a) The primary responsibility for the prevention and detection of fraud rests with both those…

A: 1) Yes, I completely agree because it is the management and the government entity that are…

Q: As an auditor of ABC Co, apply auditing principles and standards examine the expectation gaps in the…

A: Expectation gap in Auditing means if the company and its management has some expectation in the…

Q: Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial…

A: Test of controls is the process of the audit to check the effectiveness of the controls by a client…

Q: The auditor should consider audit risk when planning and performing an audit of financial…

A: Auditing is a safeguard measure adopted by every organization to ensure the correctness in the data…

Q: In making client acceptance and continuance decisions, the auditor will perform various procedures…

A: ISA 210 Agreeing the terms of Audit Engagement: This Standard deals with the preconditions for…

Q: Why is there a need on the part of the client entity to monitor internal controls over time? a.…

A: Internal Control- It is a process which is made by the entity to put control on its operations and…

Q: e auditor is governed by an audit framework as well as a regulatory environment that includes…

A: IT risks and controls must be evaluated from the top down. There are general controls and there are…

Q: The fraud triangle consists of situational pressure, opportunity and ethics. Evaluate these three…

A: The fraud triangle is a concept widely used in auditing to describe the reason when an individual…

Q: When testing a control activity’s operating effectiveness, procedures the auditor performs totest…

A: The answer is provided as follows: