Which of the following would not increase the risks of material misstatement at the overall financial statement level? - -effective oversight by the BOARD
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-The auditor's responsibility section in an audit report states that "...the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given? - -reasonable
-________ risk represents the auditor's assessment of the susceptibility of an assertion to material misstatement, before considering the effectiveness of the client's internal controls. - -inherent
-Risk of material misstatement at the assertion level - -determines the NATURE, TIMING, and EXTENT of further auditing procedures.
-Assessing the risk of material misstatement is closely related to each of the following except - -not a CRTICAL consideration in most financial statement audits.
-Name some examples where the auditor accepts some level of uncertainty in performing the audit function. - -• The inherent uncertainty about the appropriateness of evidence obtained.
• The uncertainty about the effectiveness of a client's internal controls
• Assessing risks is a matter of professional judgment rather than a precise measurement.
-Risk assessment procedures include inquiries of management and others by the auditor. As part of these procedures, the auditor should talk to - -A) internal auditors.
B) board of directors.
C) individuals involved with regulatory compliance.
(all of the above)
-Risk assessment procedures include - -OBSERVATION of the entity's operations.
-Risk assessment procedures are performed to identify and assess the risk of material misstatement. List three risk assessment procedures. - -1. Analytical procedures
2. Observation and inspection
3. Discussion among engagement team members
-When considering the risk of misstatement due to fraud, - -auditing standards outline procedures the auditor should perform to obtain information from management about their consideration of fraud.
-A ________ risk represents an identified and assessed risk of material misstatement that, in the auditor's professional judgment, requires special audit consideration. - -financial statement
-Which of the following will generally be considered a significant risk? - -the determination of the amount of BAD DEBT expense
-Which of the following risks are used in the audit risk model? - -Control Risk YES
Inherent Risk YES
Planned Detection Risk YES [Show Less]