AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Question
Chapter 6, Problem 21.3MCQ
To determine
Indicate the kind of attitude with which an audit should be planned and performed.
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In obtaining audit evidence, the auditor should use professional judgment to assess the risk of material misstatement (which includes inherent and control risk) and design further audit procedures to ensure this risk is increased to an acceptably high level.
TRUE OR FALSE? WHY?
While planning a specific audit, the PRIMARY purpose of assessing risks of the area under review is to provide reasonable assurance that material items will be adequately covered during the audit work.
a) True
b) False
Professional skepticism is an attitude that includes being alert to the following, EXCEPT
A. Evidence that is consistent with other evidence obtained
B. Information that calls into question the reliability of the documents and responses to inquiries to be used as evidence
C. Conditions that may indicate likely misstatement
D. Circumstances that suggest the need for procedures in addition to those required by relevant assurance standards
Chapter 6 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
Ch. 6 - Prob. 1RQCh. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - Prob. 4RQCh. 6 - Prob. 5RQCh. 6 - Prob. 6RQCh. 6 - Prob. 7RQCh. 6 - What are the six elements of professional...Ch. 6 - What are the five elements of an effective...Ch. 6 - Describe two of the more common judgment traps and...
Ch. 6 - Identify the cycle to which each of the following...Ch. 6 - Why are sales, sales returns and allowances, bad...Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15RQCh. 6 - Prob. 16RQCh. 6 - Prob. 17RQCh. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - Prob. 20RQCh. 6 - Prob. 21.1MCQCh. 6 - Prob. 21.2MCQCh. 6 - Prob. 21.3MCQCh. 6 - Prob. 22.1MCQCh. 6 - Prob. 22.2MCQCh. 6 - Prob. 22.3MCQCh. 6 - Prob. 23.1MCQCh. 6 - Prob. 23.2MCQCh. 6 - Prob. 23.3MCQCh. 6 - Prob. 24.1MCQCh. 6 - Prob. 24.2MCQCh. 6 - Prob. 24.3MCQCh. 6 - Prob. 25DQPCh. 6 - Prob. 26DQPCh. 6 - Prob. 27DQPCh. 6 - Prob. 28DQPCh. 6 - Prob. 29DQPCh. 6 - Prob. 30DQPCh. 6 - Prob. 31DQPCh. 6 - Prob. 32DQPCh. 6 - Prob. 33DQPCh. 6 - Prob. 34DQP
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Similar questions
- The risk that material errors will not be detected is directly controllable by the auditor through substantive tests of details and other substantive audit procedures. IS THE STATEMENT TRUE OR FALSE? WHY?arrow_forward1. Describe how the "culmination" of the audit process looks like. 2. In the final stage of a risk-based audit, how shall the auditor know that sufficient appropriate audit evidence has been obtained to support the conclusions reached for the auditor's report to be issued? 3.What are the major reasons for modifying an otherwise unmodified auditor's report?arrow_forwardIf the auditor uses the primarily substantive apporach instead of the lower control risk approach A. A higher level of understanding of internal control is required. B. The auditor plans to assess control risk at a lower level. C. The auditor plans a heavier reliance on substantive tests. D. The auditor plans to restrict substantive tests.arrow_forward
- Which of the following statements is NOT accurate as it relates to testing and the audit risk? professional judgement is required in determining the nature, timing, and extent of tests O the nature, timing, and extent of tests are performed to decrease audit risk to an acceptable level O the nature, timing, and extent of tests are determined by the client's management the nature, timing, and extent of tests are determined by the risk assessmentarrow_forwardAfter obtaining an understanding of an entitiy's internal control, an auditor may assess control risk at the maximum level for some assertions because he A. performs tests of controls to restrict detection risk to an acceptable level. B. identifies internal control policies and procedures that are likely to prevent material misstatements. C. believes the internal control policies and procedures are unlikely to be effective. D. determines that the pertinent internal control components are not well documented.arrow_forwardWhich of the following is least likely to be considered an appropriate response relating to risks the auditors identify at the financial statement level? Assign more experienced staff, Incorporate additional elements of unperdictability in the selection of audit procedures, Increase the scope of auditor procedures, Emphasize the need to remain neutral, rather than to excercise professional skepticismarrow_forward
- Maintaining an unbiased attitude during the audit illustrates:Select one: a.Client confidentiality. b.Independence in fact. c.Independence in appearance. d.Professional scepticism.arrow_forwardDefine the danger of substantial misrepresentation. RMM is measured by auditors at what level of the financial statements? Explain how auditors evaluate the RMM. What part of substantive testing does RMM play?arrow_forwardWhich of the following statements is true? Select one: a. If evidence is subjective, it cannot be reliable b. Evidence must be relevant to all of the audit objectives c. Evidence obtained directly by the auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence. d. The persuasiveness of evidence can be evaluated after considering its sufficiencyarrow_forward
- The auditor is required to maintain professional skepticism throughout the audit. Which of the following statements concerning professional skepticism is false? a. A belief that management and those charged with governance are honest and have integrity relieves the auditor of the need to maintain professional skepticism b. Maintaining professional skepticism throughout the audit reduces the risk of using inappropriate assumptions in determining the nature, timing and extent of the audit procedures and evaluating the results thereof c. Professional skepticism is necessary to the critical assessment of audit evidence d. Professional skepticism is an attitude that includes questioning contradictory audit evidence obtainedarrow_forwardOnce the auditor detects a control deficiency, which of the following steps must he or shetake first?a. Perform tests of other controls related to the same assertion as the control deemedineffective.b. Evaluate the severity of the deficiency on the auditor’s control risk assessment for thatassertion.c. Modify the planned substantive procedures as a result of the deficiency.d. Test the deficient control, assuming a maximum level of risk.arrow_forwardWhat effect will exercising professional skepticism have on the following 1. Obtaining sufficient audit evidence 2. Obtaining appropriate audit evidencearrow_forward
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