Questions from Auditing and Assurance

Q: What actions should the engagement team members be informed of by the

What actions should the engagement team members be informed of by the engagement partner and other engagement team members as part of their supervisory role?

Q: Distinguish between audit risk and engagement risk.

Distinguish between audit risk and engagement risk.

Q: What steps should an auditor perform to identify the risk of material

What steps should an auditor perform to identify the risk of material misstatement due to fraud?

Q: Why would a company institute a control policy that required mandatory vacations

Why would a company institute a control policy that required mandatory vacations?

Q: Marv Jackal, CPA, determines that a number of risks of

Marv Jackal, CPA, determines that a number of risks of material misstatement are pervasive to the overall financial statements. How should Jackal respond to such pervasive risks?

Q: How do inherent risk and control risk differ from detection risk?

How do inherent risk and control risk differ from detection risk?

Q: Distinguish between sampling risk (i.e., possibility that the

Distinguish between sampling risk (i.e., possibility that the sample drawn is not representative of the population) and professional judgment errors (non sampling) risk.

Q: Which of the following is a misappropriation of assets? a

Which of the following is a misappropriation of assets? a. Classifying inventory held for resale as supplies. b. Investing cash and earning at a 3 percent rate of return as opposed to paying off a loa...

Q: What are some limitations of the audit risk model?

What are some limitations of the audit risk model?

Q: Give three examples of conditions and events that may indicate the existence

Give three examples of conditions and events that may indicate the existence of business risks.