The risk of material misstatement is composed of which audit risk components?a. Inherent risk and control risk.b. Control risk and detection risk.c. Inherent risk and detection risk.d. Inherent risk, control risk, and detection risk.

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: For each of the following, determine how the effectiveness of the entity's internal control affect…

A: a)  As the entity's internal control is more effective. Auditor would assess less level of material…

Q: During financial statement audit, auditors seek to restrict which type of risk?   Control risk,…

A: Discovery hazard is the opportunity that an inspector will neglect to discover material misquotes…

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

A: The risk that the financial statements of an entity include material misstatements is referred to as…

Q: n audit procedure designed to evaluate the operating effectiveness of controls in preventing or…

A:

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: The susceptibility of an assertion about a class of transaction, account balance or disclosure to a…

A: Audit risk is the possibility that an auditor won't find fraud or errors while reviewing a client's…

Q: Documentation of risk assessment procedures and responses to risks of misstatement should include…

A: Risk assessment procedures are audit procedures performed to obtain an understanding of the client…

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

A:

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

Q: Which of the following statements correctly defines the term reasonable assurance? A. A substantial…

A: The objective of the auditor is to obtain high level or assurance.

Q: the susceptibility of an account balance or class of transactions to misstatements that could be…

A: Internal controls: Internal controls are maintained to decline the possibility of fraud. They ensure…

Q: What is the difference between Error and Fraud (as defined in auditing) and how shall the auditor…

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: Determine the assessed levels of detection risk and inherent risk

A: Audit is defined as an investigation of some statements of figure involving examination of certain…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: What are the components of audit risk and how do these relate to each other?

A: Audit risk refers to the possibility that financial statements are significantly incorrect, even if…

Q: Which of the following risks does the auditor least control? a. inherent risk b. control risk c.…

A: Definition: Auditing: Auditing is a process wherein the auditor investigates the financial…

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: Define the audit risk model and explain each term in the model.Also describe which two factors of…

A: As follows, the audit risk model:

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: Risk assessment procedures include

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

Q: Explain what is meant by the term acceptable audit risk. Whatis its relevance to evidence…

A: Accepted Audit Risk:- When the auditor is willing to take risk of giving an unqualified opinion for…

Q: The combination of inherent risk and control risk refers to: Detection risk Audit risk Risk of…

A: The answer for above question is given below:

Q: How do the professional audit standards differ for (a) errors, (b) frauds, (c) direct-effect…

A: Errors:   Error refers to omission of amounts or misstatement or disclosure in financial statement.…

Q: How is Audit Risk calculated?

A: Definition:   Audit Risk: The risk that arises when an auditor does not find any misstatement…

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: The likelihood that material misstatements may have entered the accounting system and notbeen…

A:

Q: In obtaining audit evidence, the auditor should use professional judgment to assess the risk of…

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

Q: Audit procedures are the processes, techniques, and methods that auditors perform to obtain audit…

A: Audit procedures are the processes, techniques and methods that auditors perform to obtain audit…

Q: On the basis of audit evidence gathered and evaluated, an auditor decides to decrease the level of…

A: Answer: Option D. Decrease in the assessed control risk.

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: The internal audit can pinpoint the person responsible for carelessness. This will help to:…

A: Audit is the process of checking and verifying the authenticity and transparency of the books of…

Q: Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to…

A: Audit risk is the risk that an auditor express an inappropriate audit opinion when the financial…

Q: What is the auditing definition of error and fraud, and how should the auditor deal with each?

A: This question explains about the auditing definition of error and fraud,  auditor deal

Q: Ordinarily, it would be appropriate to design audit procedures that would be expected to detect…

A:

Q: The combination of inherent risk and control risk constitutes : A. Occurence risk B. Audit risk…

A: The question is based on the concept of risk assessment in the Auditing.

Q: The tolerable rate of deviation set by the auditor for tests of controls depends primarily on which…

A: The auditor should determine the maximum rate of deviations from the prescribed control that he…

Q: essentially describe what materiality means in the context of the audit.

A: The most typical type of audit is a financial statement audit. A financial audit is an objective…

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

A: The answer is provided as follows:

Q: How do you assess the risk of material misstatement associated with the audit of inventories?

A: Answer: When auditor performs the audit procedures, there is always the risk of misstatement and…