Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 12, Problem 19.2MCQ
To determine
Identify the information that an auditor is required to document while assessing the control risks.
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Students have asked these similar questions
After obtaining a sufficient understanding of internal control, the auditor:
a. Determines the preliminary assessment of control risk
b. Determine the assessed levels of detection risk and inherent risk
c. Assess detection risk to determine the acceptable level of inherent risk
d. Assess the need to apply GAAS
Discuss the auditor's risk assessment procedures for assessing control risk, and provide specific procedures related to understanding management's risk assessment component of internal control.
Define control risk and explain the role of control risk assessment in audit planning.
Chapter 12 Solutions
Auditing And Assurance Services
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQPCh. 12 - Prob. 33DQPCh. 12 - Prob. 34DQP
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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
- How does inherent risk relate to internal controls? Why is it important to assess inherent risks of material misstatement prior to evaluating the quality of an organization’s internal controls?arrow_forwardAside from documenting his/her understanding of the internal control structure, the auditor should also document the assessed level of control risk. True or false? why?arrow_forwardIn assessing control risk, an auditor selects from a variety of techniques, including A. Inquiry and recalculation B. Reperformance and observation C. Comparison and confirmation D. Inspection and verificationarrow_forward
- Outline the sources of audit evidence the auditor can use as part of risk assessment procedures.arrow_forwardWhen assessing the risk associated with an activity, an internal auditor should: Provide assurance on the management of the risk. Update the risk management process based on risk exposures. Determine how the risk should best be managed.arrow_forwardThe auditor obtains sufficient understanding of the internal control structure to identify reportable conditions. True or false? why?arrow_forward
- How does control risk affect the nature, timing, and extent of further audit procedures?arrow_forwardThe internal audit function is part of what element of the internal control system? a.Risk assessment b.Control activities c.Control environment d.Monitoringarrow_forwardAn auditor assesses control risk because it: A. is relevant to the auditor's understanding of the control environment B. provides assurance that the auditor's materiality levels are appropriate. C. indicates to xthe auditor where inherent risk may be the greatest. D. affects the level of detection risk that the auditor may accept.arrow_forward
- ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate risks to an acceptable level is part of which component in the COSO Framework? a. Control environment b. Risk assessment c. Control activities d. Monitoringarrow_forwardWhat are the components of Audit Risk? Use the Audit risk equation and briefly explain the components of audit risk.arrow_forward
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