Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, performance materiality, and planned evidence, state the effect on planned evidence (increase or decrease) of changing each of the following factors, while the other factors remain unchanged. an increase in acceptable audit risk ________ an increase in inherent risk ________ a decrease in control risk ________ an increase in planned detection risk ________ an increase in performance materiality ________

Q: The tem

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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: 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…

Q: The higher the level of confidence gained from control testing, the higher the level of assurance…

A: The level of assessment of risk of material misstatement depends on the auditor's level of…

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

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Q: Which of the following tests are considered further audit procedures that may be designed after…

A: Substantive test of details are considered further audit procedures that may be designed after…

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: If performance materiality increases, what impact would it have on the amount of evidence required…

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

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Q: Describe the methodology fordesigning tests of details ofbalances using the audit riskmodel.

A:

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

A: A tolerable misstatement states the amount by which a financial statement line item can differ from…

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

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

A: Solution Explanation - The preliminary assessment of control risk is the process of evaluating the…

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: audit procedures

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

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: What responses should an auditor take based on different levels of acceptable detection risk (DR)?…

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Q: If recommendations are made to the audit report noted problems and weaknesses, written responses…

A: When recommendations are made to the audit report noted problems and weaknesses, written responses…

Q: Inherent risk and control risk differ from detection risk in which of the following ways? A.…

A: Inherent risk is the risk of misstatement of financial statements due to factors other than flaws in…

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

A:

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

A:

Q: (a) Explain what you should consider and do before accepting the audit engagement from Hope-well…

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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: As the acceptable level of detection risk decreases, an auditor may: A. reduce substantive testing…

A: The requirement is to determine a likely auditor reaction to a decreased acceptable level of…

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

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A:

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

A:

Q: Risk assessment procedures include

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Q: In considering the evidence needed to assess control risk during the period from interim to…

A: Audit Risk Audit risk which describes as the risk which are associated to conduct the audit work in…

Q: Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy she…

A: Correct option is C) combined Audit strategy

Q: Explain the circumstances when the auditor should revise the components of the audit risk model and…

A: The auditor should revise the parts of the audit risk model once the proof collected throughout the…

Q: Which of the following does not increase the need for sufficient appropriate auditevidence?(1) A…

A: A lower acceptable level of detection risk, An increase in the assessed control risk, A lower…

Q: Risk assessment most commonly focuses on two criteria - impact and likelihood. As an ganization's…

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

Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

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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: New technologies are used. This is an example of: * O Audit risk O Control risk Inherent risk…

A: Audit Risk: Audit risk is the risk that financial statements are materially misstated and the…

Q: Explain the definition of the audit expectation gap? Then, discuss some approaches to reducing the…

A: SOLUTION- AUDIT EXPECTATION GAP- THE AUDIT EXPECTATION GAP OCCURS WHEN THERE IS A DIFFERENCE BETWEEN…

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: 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: True or false: The lower the materiality level, the higher the amount of required evidence from…

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