AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Textbook Question
Chapter 9, Problem 3RQ
Provide two examples of factors that might increase the risk of material misstatement at the overall financial statement level.
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Identify three different categories of fraud risk factors. Next, for each category, what are some ofthe conditions that can help contribute to a higher likelihood of financial statement fraud?
Which is not a Risk Assessment Procedure?
a.
Ratio Analysis
b.
Observation of Activities
c.
Account Receivable confirmations
d.
Inspection of Documents
e.
Inquiry of Internal Auditors
Below are events, for each event, identify the type of risk the event entails, classify your identified risk as either systematic or unsystematic risk;
Economic distress
Mismanagement
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Working capital problems
Fraudulent management.
Chapter 9 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Provide two examples of factors that might...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Prob. 14RQCh. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. 25.1MCQCh. 9 - Prob. 25.2MCQCh. 9 - Prob. 25.3MCQCh. 9 - Prob. 26.1MCQCh. 9 - Prob. 26.2MCQCh. 9 - Prob. 26.3MCQCh. 9 - Prob. 27.1MCQCh. 9 - Prob. 27.2MCQCh. 9 - Prob. 27.3MCQCh. 9 - Prob. 28.1MCQCh. 9 - Prob. 28.2MCQCh. 9 - Prob. 28.3MCQCh. 9 - Prob. 29DQPCh. 9 - Prob. 30DQPCh. 9 - Prob. 31DQPCh. 9 - Prob. 33DQPCh. 9 - Prob. 34DQPCh. 9 - Prob. 35DQPCh. 9 - Prob. 36DQPCh. 9 - Prob. 37DQPCh. 9 - Prob. 39C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The risk that a client's financial statements are susceptible to material misstatements is a. control risk b. inherent risk c. audit risk d. none of the abovearrow_forwardThe risk of a material misstatement in the financial statements arising due to error or omission as a result of factors other than the failure of controls is called: a. Control Risk b. Inherent Risk c. Audit Risk d. Detection Riskarrow_forwardEconomic distress and mismanagement are events, identify the types of risk each of them entails and classify your identified risk as either systematic or unsystematic risk.arrow_forward
- What are the five types of tests auditors use to determine whether financial statements are fairly stated? Identify which tests are performed to reduce planned detection risk.arrow_forwardProvide the key factor auditors will have to review when deciding on the inherent risk within the accounting system.arrow_forwardOnce risks are identified, auditors assess the risk of material misstatement at the _______ level for these significant classes of transactions and account balances. A. disclosure B. financial statement C. relevant assertion level D. accountarrow_forward
- Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to be overstated or understated and explain why.arrow_forwardAn audit can have significant effect on A. Financial risk B. Business risk C. Information risk D. Solvency riskarrow_forwardAn amount less than materiality that is set to reduce the likelihood that the aggregate amount of misstatements not exceed materiality for the financial statements as a whole is known as O qualitative materiality. specific materiality. O quantitative materiality. O performance materiality.arrow_forward
- Define and give examples of off-balance-sheet information. Why should auditors be concerned with such items?arrow_forwardDuring financial statement audit, auditors seek to restrict which type of risk? Control risk, Detection risk, Inherent risk, or Account riskarrow_forwardSome account balances such as those for pensions and leases are the result of complex calculations. The susceptibility to material misstatements in these types of accounts is defined as a. Sampling risk b. Detection risk c. Inherent risk. d. audit riskarrow_forward
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