Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 18, Problem 32EOQ
To determine
Identify the appropriate answer related to the possibility of a material misstatement.
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Students have asked these similar questions
5) What are common limitations of Internal Controls?
a) Human Error
b) Human Fraud
c) Cost-Benefit Principle
d) A, B, and C
e) A and B only
What must occur if a Significant Deficiency is identified?
Regarding materiality, both amount and nature of misstatements should be considered.
One of the inherent limitations of internal control is the lack of segregation of duties.
Group of answer choices
False, False
True, True
True, False
False, True
Chapter 18 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - Prob. 4RQCh. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQ
Ch. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 23RQCh. 18 - Prob. 24RQCh. 18 - Prob. 25RQCh. 18 - Prob. 26RQCh. 18 - Prob. 27RQCh. 18 - Prob. 28RQCh. 18 - Prob. 29QRACh. 18 - Prob. 30QRACh. 18 - Prob. 31QRACh. 18 - Prob. 32AOQCh. 18 - Prob. 32BOQCh. 18 - Prob. 32COQCh. 18 - Prob. 32DOQCh. 18 - Prob. 32EOQCh. 18 - Prob. 32FOQCh. 18 - Prob. 32GOQCh. 18 - Prob. 32HOQCh. 18 - Prob. 32IOQCh. 18 - Prob. 32JOQCh. 18 - Prob. 32KOQCh. 18 - Prob. 32LOQCh. 18 - Prob. 33OQCh. 18 - Prob. 34OQCh. 18 - Prob. 35OQCh. 18 - Match the following definitions (or partial...Ch. 18 - Prob. 37PCh. 18 - Prob. 38ITC
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Similar questions
- Select each attribute with the most directly related term. No term is used more than once. Attributes 1. Likelihood a misstatement will not be prevented or detected 2. Substantive procedures and tests of controls 3. Likelihood of misstatement assuming no controls 4. Reporting on internal control and financial statements 5. Creates a reasonable possibility a material misstatement will not be detected 6. Inquiries, analytical procedures, observation 7. Merits attention, less than a material weakness 8. GAAP 9. Inquire, inspect, observe, reperform 10. Follow a transaction through the system Termarrow_forwardDiscuss the differences between a control deficiency, a significant deficiency, a material weakness, and the two dimensions of the control deficiency - likelihood and magnitude.arrow_forwardAssuming a lack of internal control in a client's system, the risk of material misstatement is known as? O Inherent risk Client risk O Detection risk O Audit riskarrow_forward
- Which of the following conditions is not necessary for a fraud to occur?Select one:a. Explanationb. Pressurec. Opportunityd. Rationalizationarrow_forwardWhat is the term given for information that should NOT be taken from one source as the collectors of the information may have collected this for a specific purpose? a. Accuracy b. REliability c. Completeness d. Biasarrow_forwardWhich of the following would not result in exposure to nonsampling risk?a. Measuring the characteristic of interest in an inappropriate manner.b. Selecting items that are not representative of the population of interest.c. Making an unintentional mistake in measuring the characteristic of interest.d. All of the above would result in exposure to nonsampling risk.arrow_forward
- Describe what is difference between errors and fraud.arrow_forwardPlease Introduction and solution is correct without plagiarism pleasearrow_forwardWhich of the following is not a contributory factor towards faithful representation? A. Freedom from error B. Consistency C. Completeness D. Neutralityarrow_forward
- Internal control policies and procedures have limitations not including: O Collusion. O Human fraud. O Cost-benefit principle. O Establishing responsibilities. Human error.arrow_forwardWhat are the types of situations that result in troubleddebt?arrow_forwardThe risk of material misstatement is a combination of two client controlled factors: inherent risk and control risk. What is inherent risk, why is it important and give four examples of inherent risk factors.arrow_forward
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