The results of analytical procedures may identify previously unrecognized risk of material misstatement in that case an auditor requires to O a. Modify the engagement letter O b. Revise the assessment of the risk of material misstatement O .Terminate the audit and client relationship O d. Unmodified the planned audit procedures

Q: When assessing and identifying Control Risk or Risk of Material Misstatement, the auditor may answer…

A: When assessing and identifying Control Risk or Risk of Material Misstatement, the auditor may answer…

Q: Which of the following would be inappropriate during the risk assessment procedure of the audit…

A: We shall answer the first question, since the exact question wasn't specified.Please resubmit a new…

Q: Internal Control Audit Standards. Auditors are required to obtain a sufficient understanding of each…

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

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: 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: 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: Which among the following is not a major purpose of onsite fieldwork conducted by the auditor as a…

A: The fieldwork consists of examining the risks involved in processes, evaluation of internal controls…

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: i) Which of the following statements correctly explains the responsibility of the external auditor?…

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

Q: When an auditor is planning an audit, the auditor should:   Consider whether the extent of…

A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done 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: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

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

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: Which of the following would be inappropriate during the risk assessment procedure of the audit…

A: Through an understanding of the entity and its surroundings, the auditor's role is to detect and…

Q: Written representations are considered audit evidences.

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Uncorrected Misstatements and Performance Materiality. During the conduct of an audit, auditors may…

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: 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: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…

A: If an analytical procedure performed, identify fluctuations or relationships that are inconsistent…

Q: Incorporating elements of unpredictability in the selection of audit procedures to be performed by…

A: Audit Procedures: The particular and specific procedures undertaken by auditors to procure evidence…

Q: The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable…

A: Audit evidence refers to all sorts of information, or bunch of documents or any sort of data…

Q: Once the auditor detects a control deficiency, which of the following steps must he or shetake…

A: Internal control is the process of achieving objectives in operational efficiency and effectiveness.…

Q: Risk assessment procedures include

A: The first statement is false because the risk assessment procedures are the audit procedures to…

Q: Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material…

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

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

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: Which of the following statements is incorrect?

A: In order to authenticate the financial statements which has been prepared by the company and in…

Q: Which of the following aspects of an audit examination is not related to the performance principle?…

A: The audit is a process wherein the books of accounts are examined and checked so as to check their…

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: An auditor discovered the following matters while performing tests of controls: 1.An obligation for…

A: Internal Controls: The process designed, implemented, and maintained by those charged with…

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

A: Answer:   Option C.

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: 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: The audit risk model includes the four risks listed below. Match the type of risk with the related…

A: Audit risk is the risk that financial statements are material misstatement and audit opinion states…

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: Supervision and review are essential parts of managing an engagement. When the auditor obtains…

A: Financial statement assertions also known as the management assertions are defined as an official…

Q: When completing the audit of internal controls for an issuer, the severity of an internal control…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: (a) (i) Explain the concepts of materiality and audit risk and the relationship between them? (ii)…

A: Materiality is a concept or convention within auditing and accounting relating to the…

Q: Based on evidence gathered and evaluated, an auditor decides to increase the assessedlevel of…

A: Definition: Planned detection risk is the risk in audit evidence for a segment that will fail to…

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 would generally not be used ? Select one : O a. Re -perform client procedures

A: Internal control procedures means control procedures that are used for safeguarding of assets of the…

Q: Why is the audit team more concerned with controlling the exposure to the risk of overreliancethan…

A: Issuance of an unqualified record of financial statements due to the auditor's inability to correct…

Q: 2. If an auditor finds any misstatements or deviations in planned procedures: a. the auditor should…

A: Misstatement: It implies to a difference in the way an amount has been reported, classified, and…

Q: Audit firms may have a standardized audit programs for auditing long-lived assets but auditors must…

A: The financial statements may contain misstatements, and any other fraudulent activities and auditing…