Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 7, Problem 2CYBK
To determine
Introduction: It is about the performance materiality with relation to overall materiality.
To explain: The relative importance of performance materiality in comparison with overall materiality and the contribution in judgment for determining the extent of audit evidence required.
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Students have asked these similar questions
Which of the following does not relate to audit quality?
A. Independence
B. Due diligence
C. Audit fees
D. Audit competence
Inherent risk and control risk differ from detection risk in which of the following ways?
A. Inherent risk and control risk are calculated by the client
B. inherent risk and control risk exist independently of the audit.
C. Inherent risk and control risk are controled by the auditor.
D. Inherent risk and control risk exist as a result of the auditor's judgement about materiality.
Which of the following does NOT accurately describe the concept of materiality?
O performance materiality is calculated before overall materiality
materiality is based on the needs of the users of the financial statements
O materiality determines the nature, timing, and extent of the audit work to be performed
O qualitative and quantitative factors are considered in the calculation of materiality
Chapter 7 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 7 - Prob. 1CYBKCh. 7 - Prob. 2CYBKCh. 7 - Prob. 3CYBKCh. 7 - Prob. 4CYBKCh. 7 - Prob. 5CYBKCh. 7 - Prob. 6CYBKCh. 7 - Prob. 7CYBKCh. 7 - Prob. 8CYBKCh. 7 - Prob. 9CYBKCh. 7 - Prob. 10CYBK
Ch. 7 - Prob. 11CYBKCh. 7 - Prob. 12CYBKCh. 7 - Prob. 1RQSCCh. 7 - Prob. 2RQSCCh. 7 - Prob. 3RQSCCh. 7 - Prob. 4RQSCCh. 7 - Prob. 7RQSCCh. 7 - Prob. 8RQSCCh. 7 - How does inherent risk relate to internal...Ch. 7 - Prob. 10RQSCCh. 7 - Prob. 11RQSCCh. 7 - Prob. 12RQSCCh. 7 - Prob. 13RQSCCh. 7 - Prob. 14RQSCCh. 7 - Prob. 15RQSCCh. 7 - Prob. 17RQSCCh. 7 - Prob. 18RQSCCh. 7 - Prob. 19RQSCCh. 7 - Prob. 22RQSCCh. 7 - Prob. 23RQSCCh. 7 - Prob. 24RQSCCh. 7 - Prob. 25RQSCCh. 7 - Prob. 26RQSCCh. 7 - Prob. 27RQSCCh. 7 - Prob. 29FF
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Similar questions
- Can the auditor obtain more audit evidence to compensate for the lack of perceived appropriateness (quality) of the evidence which is available?arrow_forwardIf performance materiality increases, what impact would it have on the amount of evidence required to be collected during an audit?arrow_forwardclarify the relationship between audit risk and materiality determining the right degree of audit risk necessitates an auditor making a determination on materiality.arrow_forward
- Which of the following characteristics is not considered essential to audit evidence? a. Availability of evidence b. Reliability of evidence c. Sufficiency of evidence d. Relevance of evidencearrow_forwardWhich of the following is correct about the appropriateness of audit evidence? O a. It is the measure of the over-all audit strategy O b. It is the measure of the quantity of audit evidence O c. It is the measure of the quality of audit evidence O d. It is the amount of the audit evidencearrow_forwardThe size of the subset of items the auditor examines is primarily a function of materiality and the desired level of assurance for the account or assertion being examined * True Falsearrow_forward
- Generally, which of the following audit procedures is the least expensive to perform? A. Analytical procedures B. Tests of details of balance C. Substantive tests of transactions D. Tests of controls E. Risk assessment procedurearrow_forwardExplain what is meant by the audit expectation gap.arrow_forwardessentially describe what materiality means in the context of the audit.arrow_forward
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