IMG_8130

Which of the following is appropriate about risk assessment? A. The assessed level of inherent and control risk can be sufficiently low, thus resulting to eliminating the need for substantive tests. B. Audit risk may be more effectively determined by assessing inherent and control risk separately. C. Detection risk is eliminated if an auditor were to examine 100 percent off the account balance or class of transactions. D. There is an iverse relationship between detection risk and the combined level of inherent and control risk

appropriate level of professional skepticism.Required:a. Define professional skepticism.b. During which stages of the audit are auditors required to exhibit professional skepticism?c. How does each of the following independent issues potentially relate to the principle ofprofessional skepticism?1. The auditor’s firm has served the client for a long period of time, and strong friendshipshave developed between the firm personnel and client’s officers.2. Auditors are anxious to complete the audit shortly because of other workload demandsand deadlines related to other engagements.3. The client has mentioned on a number of occasions its desire to reduce (or limit) theaudit fee

determine whether statement 1 and 2 are true or false 2. S1- Studying the relationship of financial information with another information, whether financial or non-financial, is an example of an analytical procedure.    S2-To reduce audit risk to an acceptable low level, the auditor should determine overall responses assessed risks at the assertion level a. False, False b. True, False c. False, True d. True, True

Which of the following is correct?      a.   Auditors should evaluate application controls before evaluating general controls      b.   Auditors should evaluate application controls and general controls simultaneously.      c.   Auditors should evaluate general controls before evaluating application controls.      d.   None of these statements is correct. Required:     choose the correct answer and Justify your answers in at least 6 sentences.

An IT auditor is performing an application development audit for a high risk web-based application.  In determining tests of controls, which of the following is a TRUE statement: 1. The IT auditor should limit testing to inquiry procedures with the lead developer. 2. Conduct inquiry procedures, corroborated by inspection of evidence. 3. Increase sample sizes due to the elevated risks associated with the application.  a) 1, 2, and 3 b) 1 and 2 only c) 1 only d) 2 and 3 only

37-Planning involves establishing the overall audit strategy and developing the audit plan. Identify an option against planning from the following: O a. It assists auditor to devote more time on important area and less on unimportant. O b. It helps auditor in timely resolving problems O c. It not pervasive process O d. It assists in coordination of audit work

The temporal order of an audit engagement mirrors the audit risk model.   Question 39 options:   True   False

QUESTION 2 The risk of the auditor “getting it wrong” or giving opinions that are not 100% accurate will always be present and this is referred to as audit risk. Audit risk is better understood when the components of the risks are understood. Identify and explain the three components of audit risk

State with reasons (in short) whether the following statements are correct or incorrect (a) The terms of audit engagement can restrict the scope of an audit. · (b) It is the function of an audit to establish that payments have been made validly to the persons who are shown to be recipients. (c) Letter of Representations received from Management relieve the auditors of their responsibility. (d) Stratified sampling method involves dividing the whole population to be tested in a few separate groups. (e)  There is a very thin difference between advocacy threats and intimidation threats to an auditor while performing his duty

2.You are an external auditor and you have agreed on a task completion a task with required outcomes to obtain a fee. Which of the following threat it will arise?Single choice. Self review threat Intimidation threat Advocacy threat Familiarity threat

Describe what is meant by acceptable audit risk. Explain whyeach of the following statements is true:a. A CPA firm should attempt to achieve the same audit risk for all audit clients whencircumstances are similar.b. A CPA firm should decrease acceptable audit risk for audit clients when external usersrely heavily on the statements.c. A CPA firm should decrease acceptable audit risk for audit clients when engagementrisk is high.d. Different CPA firms should attempt to achieve reasonably similar audit risks forclients with similar circumstances

As the risk of material misstatement increases, the amount of evidence the auditor will accumulate should: Oc. Stay the same b. Increase a. Decrease d. Is indeterminate

If recommendations are made to the audit report noted problems and weaknesses, written responses detailing the following are requested from the audit client: a. A corrective action plan to resolve the problem and its root cause. b. The person responsible for implementing the corrective action. c. An expected implementation date. d. All of the options

When control risk is assessed at less than high for all financial statements assertions, an auditor should document the auditor’s     A B C D ·       Understanding of the entity’s internal control structure Yes Yes No Yes ·       Conclusion that control risk is less than high No Yes Yes Yes ·       Basis for the conclusion that control risk is less than high Yes Yes No No Group of answer choices B C A D

Maintaining an unbiased attitude during the audit illustrates:Select one: a.Client confidentiality. b.Independence in fact. c.Independence in appearance. d.Professional scepticism.

Q4) Auditors are required to consider a client's internal control.a. Describe the two purposes of the auditors' consideration of a client's internal control.b. Even the best internal control has certain limitations. List three of those limitations.