Questions from Auditing and Assurance

Q: Which of the following circumstances would most likely cause an audit team

Which of the following circumstances would most likely cause an audit team to perform extended procedures? a. Supporting documents are produced when requested. b. The client made several large adjustm...

Q: The likelihood that material misstatements may have entered the accounting system and

The likelihood that material misstatements may have entered the accounting system and not been detected and corrected by the client’s internal control is referred to as a. Inherent risk. b. Control ri...

Q: The risk of material misstatement is composed of which audit risk components

The risk of material misstatement is composed of which audit risk components? a. Inherent risk and control risk. b. Control risk and detection risk. c. Inherent risk and detection risk. d. Inherent ri...

Q: The auditors assessed risk of material misstatement at 0.50 and

The auditors assessed risk of material misstatement at 0.50 and said they wanted to achieve a 0.05 risk of failing to express a correct opinion on financial statements that were materially misstated....

Q: How does control risk affect the nature, timing, and extent

How does control risk affect the nature, timing, and extent of further audit procedures?

Q: If tests of controls induce the audit team to change the assessed

If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.05) and inherent risk remain constant, the acceptable level o...

Q: Why should auditors understand their clients’ performance measures when assessing inherent risk

Why should auditors understand their clients’ performance measures when assessing inherent risk?

Q: What is the major concern for auditors related to evidence obtained from

What is the major concern for auditors related to evidence obtained from related parties?

Q: The most reliable evidence regarding the existence of newly acquired computer equipment

The most reliable evidence regarding the existence of newly acquired computer equipment is a. Inquiry of management. b. Documentation prepared externally. c. Evaluation of the client’s procedures. d....

Q: What are some types of knowledge and understanding about a client’s business

What are some types of knowledge and understanding about a client’s business and industry that an auditor is expected to obtain? What are some of the methods and sources of information for understandi...