4. Overall risk management arrangements are the main preoccupation of the internal auditor who is concerned with all those controls fundamental to the achievement of organizational objectives. It is main .. On internal and external audit? A. Similarity B. Difference C. No D. Equality connectio 5. From taking care of risk perspective what should be done if the Impact of risk is high and likelihood of risk is high ? A. Terminate B. Transfer C. Take more D. Communi cate

4. Overall risk management arrangements are the main preoccupation of the internal auditor who is concerned with all those controls fundamental to the achievement of organizational objectives. It is main .. On internal and external audit? A. Similarity B. Difference C. No D. Equality connectio 5. From taking care of risk perspective what should be done if the Impact of risk is high and likelihood of risk is high ? A. Terminate B. Transfer C. Take more D. Communi cate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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29 Which of the following documenting the auditor's understanding of internal controls is the best: ut of Select one: o a internal control questionnaires. b. flowcharts. O c. depend on the auditor. d. Narratives
37-Planning involves establishing the overall audit strategy and developing the audit plan. Identify an option against planning from the following: O a. It assists auditor to devote more time on important area and less on unimportant. O b. It helps auditor in timely resolving problems O c. It not pervasive process O d. It assists in coordination of audit work
It refers to the risks that a material misstatement will even occur, that it would not be prevented ordetected by client internal controls, and that is not detected by the auditor’s own procedures.a. Inherent riskb. Control riskc. Detection riskd. Audit risk Audit risk and materiality are considered at the level ofa. Overall financial statements.b. Assertions relating to individual account balance, class of transactions, or disclosure.c. Both a and b.d. Neither a nor b.
$1: Obtaining an understanding of internal control requires the auditor to reach a conclusion about the effectiveness of internal control,$2: An understanding of the control environment, risk assessment, and control activities provides the auditor with a specific knowledge of the entity's organizational structure, of methods used to communicate responsibility and authority, and of methods used by management to supervise the system.$3: If the auditor assumes a maximum level of control risk, he/she should document the conclusion, although not necessarily the reason for the conclusion, A: Ifall statements are correct.B: If only one statement is correct.C- If only two statements are correct.D- If all statements are incorrect.
Below are events, for each event, identify the type of risk the event entails, classify your identified risk as either systematic or unsystematic risk; Public policy Boards’ risk blindness: risk Information glass ceiling Managerial inefficiency and ineffectiveness Risk assessment strategy.
Which one of the following statements is most appropriate to Control risk? Susceptibility of account balances or class of transaction to be materially misstated, assuming there were no internal controls Risk of non-detection of material misstatements in financial statements Risk of failure of internal control in the prevention or detection of material misstatements Risk of an inappropriate opinion Auditing and Cont..pdf A 10:36e T-TI/-V/-0 EN Home End Insert Delete
Which must the auditor communicate to management? A. B. C. D. Known Material Weaknesses Yes Yes No No Known Significant Deficiencies Yes No Yes No
22. An internal auditor is conducting an evaluation of significant risks that could keep the organization from achieving its objectives Which of the following are potential techniques used by the internal auditor to identify significant risks? I. The internal auditor compiles a listing of the most common risks facing the company II. The internal auditor consults with an outside expert to get an opinion on the marketability of a new product III. The internal auditor conducts interviews and surveys management on potential risks IV. The internal auditor puts on a workshop for key managers on identifying risks Group of answer choices I, II, III and IV II, III and IV only I, II and III only None of the choices I and II only
d. Internal auditing is also known as operational auditing. e. BIR auditing is also known as compliance auditing. f. The internal auditor is directly concerned with the detection and prevention of fraud.
What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to enable management to understand the internal control O b. It shall be sufficient to enable employee to understand the internal control O c It shall be sufficient to enable an experienced auditor to understand the audit procedures O d. It shall be sufficient to enable auditor to understand the engagement letter
Which of the following audit techniques would most likely provide an auditor with the least assurance about the effectiveness of the operation of a control? Multiple Choice A.Walkthrough. B.Observation of entity personnel. C. Reperformance of the control by the auditor. D.Inquiry of entity personnel.
6. Risk assessment most commonly focuses on two criteria - impact and likelihood. As an organization's risk assessment process evolves, what other criteria might be valuable to consider and why? 1. They should also consider changes in the process since the last audit because that will help them better understand impact and help answer questions about what caused the issue.