Question

An auditor uses the audit evidence provided by the understanding of internal control and the assessment...

An auditor uses the audit evidence provided by the understanding of internal control and the assessment of the risks of material misstatement to determine the nature, timing, and extent of Tests of controls.

Compliance requirements.

Attribute tests.

Further audit procedures.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is option 4

Further audit procedures.

The risk assessment of auditor serves as a basis for further audit procedures. The audit evidence is used by the auditor in sufficient detail to form a basis for the risk assessment of material misstatement. Then, the designing and performance of further audit procedures are carried out. According to international standard on Auditing , the auditor is required to make risk assessments at the level of financial statement and assertion by applying an appropriate understanding.

of the entity and its environment, including its internal control. I

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. The types of procedures/evidence the auditor generally uses to obtain an understanding of internal control...
1. The types of procedures/evidence the auditor generally uses to obtain an understanding of internal control include: 2. The auditor usually would assess the effectiveness of: 3. A material weakness is defined as: a. an internal control deficiency that is important to users of the financial statements b. a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement will not be prevented or detected and corrected on...
3.              Which of the following statements about understanding internal control is not true:                a. T
3.              Which of the following statements about understanding internal control is not true:                a. The auditor uses the knowledge of the system of internal control to design further audit procedures to collect evidence.                b. In the presence of a strong system of internal control, the auditor may choose to collect less evidence about transactions or balances.                c. In the audit of a private company, it is necessary to express an opinion on the system of internal control...
After obtaining an understanding of the company’s internal control system, an auditor may decide to set...
After obtaining an understanding of the company’s internal control system, an auditor may decide to set control risk at the maximum level (i.e. take a substantive approach) for some assertions because he a. Believes the internal controls are unlikely to be effective. b. Determines that the pertinent internal control components are not well documented. c. Performs tests of controls to restrict detection risk to an acceptable level. d. Identifies internal controls that are likely to prevent material misstatements.
An auditor’s response to the assessment of the risks of material misstatement due to fraud takes...
An auditor’s response to the assessment of the risks of material misstatement due to fraud takes various forms. A response with an overall effect on the conduct of the audit is to A. Change the timing or extent of auditing procedures. B. Perform a retrospective review of significant accounting estimates. C. Consider whether management’s applications of accounting principles indicates a bias. D. Change the nature of auditing procedures.
30) Which of the following audit tests form the basis for an auditor's report on internal...
30) Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?                A) tests of controls                          B) tests of transactions C) analytical procedures                D) tests of details of balances 31) Which of the following is generally not included in the "evidence mix"? A) tests of details of balances      B) tests of controls C) risk assessment procedures    D) substantive tests of transactions 32) When an auditor believes that analytical procedures indicate a...
1. Give examples of responses to the assessed risk of material misstatement. 2. What is the...
1. Give examples of responses to the assessed risk of material misstatement. 2. What is the relationship of a less than high control risk assessment to the nature, extent, and timing of substantive tests? 3. How are audit matters related to internal control communicated to management and to those charged with governance? 4. When is the control risk assessment High? Less than high?
PLEASE EXPLAIN THE FOLLOWING Understand the audit risk formula and model Understand the relationships between inherent...
PLEASE EXPLAIN THE FOLLOWING Understand the audit risk formula and model Understand the relationships between inherent risk and control risk and risk of material misstatement Understand the relationships between audit risk, Risk of Material Misstatement and detection risk (is it proportional/direct or inverse) If one goes up foes the other go up or down? Understand the impact of changes in inherent risk, control risk, detection risk to substantive testing. If detection or control risks go up or down does an...
When planning an audit, the plan should include a high-level description of the nature, timing, and...
When planning an audit, the plan should include a high-level description of the nature, timing, and extent of all of the following EXCEPT: Group of answer choices A. Planned audit procedures for each material account balance and class of transactions. B. Planned risk assessment procedures to assess the risks of material misstatements. C. Other audit procedures needed to comply with GAAS. D. Preliminary assessments of risks of competitors of the client being audited.
An auditor determines that the audit risk is low, the inherent risk is high and the...
An auditor determines that the audit risk is low, the inherent risk is high and the client’s internal controls are not effective. Which of the following conclusions can be reached? A. None of the options is correct. B. Auditors need to perform tests of controls. If the client’s internal control is proven to be effective, reduce the extent of substantive tests. C. Predominantly substantive strategy needs to be used. D. Auditors can choose to use lower assessed control risk strategy....
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63...
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 QUESTION 1 All of the following are management’s objectives in designing effective internal controls over financial reporting (ICFR) except for ______________ ? a. Comply with section 404 of the Sarabanes Oxley (SOX) act. b. Producing accurate and complete financial statements and other reports to make operational decisions. c. Ensure reliability of financial reporting d. Management review of the year-end financial statements to ensure proper...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT