ACC 4304 Exam 2
Dana and Casey are discussing the benefits of machine learning one day after auditing class. Dana mentions to Casey that he didn't catch all of the benefits of using such a system for an auditor, and asks Casey to explain the benefits. Which of the following represents Casey's most appropriate response to this query?
A key benefit of machine learning is the system's ability to continually refine itself in a learning loo
Bob and Cassie, two audit staff associates, are discussing the management letter which is soon to be issued by the partner with overall responsibility for the engagement with respect to the audit of Candle Enterprises, Inc. Bob and Cassie are discussing why the audit firm they work for would even issue such a communication. Which of the following best represents a purpose and benefit of the management letter?
A management letter is sent to those charged with governance of the entity, and affords management an opportunity to receive an expert opinion on internal controls.
DayGlow Inc. is a manufacturer of specialized motors for racing cars and trucks, and operates in both the American and Canadian markets. As part of the audit of DayGlow Inc., the partners of the external auditors, StraightLace LLC are meeting to discuss some areas of potentially higher inherent risk. One area that has been mentioned is the client's international operations; more specifically receivables from Canadian firms. Which of the following best represents an audit procedure that might be used to audit this area?
A recalculation procedure to ensure that the sales and receivables amounts are recorded correctly, and have been adjusted as necessary due to foreign currency fluctuations.
A misstatement could occur with ________.
All of the choices are correct. (a classification; an account balance; a transaction)
Audit data analytics can be used ________.
All these answer choices are correct. (as a risk assessment tool; as a test of details; as a test of controls)
As part of an audit data analytics (ADA) procedure, some steps that might be used for regression analysis are ________.
All these answer choices are correct. (use the regression equation to make predictions for the data being currently audited; estimate the prediction equation using data that is not currently being audited (usually historical data); validate the prediction equation from a statistics point of view)
Charles and Eddie are discussing various clients' systems of internal control, in particular significant deficiencies in internal control. Which of the statements below is correct with respect to significant deficiencies in internal control?
An auditor is required to report a significant deficiency to those charged with governance, which may develop into a material weakness in the future if left uncorrected.
Don, an audit partner at Haribo CPA firm is discussing the idea of a client's system of internal control with Annie, a new audit staff associate. Annie is curious as to why the external auditors place such a high emphasis on internal control. Which of the following represents Don's best response to this question?
An auditor needs to gain a sound understanding of a client's internal controls to help understand what substantive testing may be necessary.
During an audit of Beaver Company, Jackson Auditing Firm is attempting to determine notable items related to inventory. In order to assist with this, Jackson's auditing team has compiled the necessary historical data and conducted a regression analysis in order to attempt to identify any notable items. The Audit Senior in charge of the audit of Beaver Company has decided to set a prediction interval of 95%. Which of the following statements is true?
Any value that falls outside of the prediction interval represents a notable item, and the auditor must determine the legitimacy of the item.
A fundamental premise of any external audit is checking assertions and searching for evidence to either corroborate or refute these assertions. Which of the following statements best describes the idea of an assertion and who holds responsibility for the assertions made?
Assertions are made by the client's management, and are implicit within the financial statements. Management holds ultimate responsibility for the accuracy of these assertions.
By whose standards are internal control weaknesses commonly categorized into three groups?
Both PCAOB and U.S. GAAS
Brooklyn, an experienced auditor from the audit firm Liberty, noted a high risk of employee fraud schemes pertaining to cash disbursements at Dewey Doggy, a large-scale hotdog stand. Which of the following audit data analytic (ADA) techniques could best be used to test for fraudulent employee cash disbursements?
Brooklyn could use a matching analysis to search for fraudulent employee cash disbursements. Brooklyn could request the listing of bank accounts and routing numbers that are used for employee payroll. Brooklyn could use ADA to search for matches of bank account and routing numbers to those that are used for other cash disbursements. Any overlapping information could be further investigated for potential fraud.
Considering the risk of overstatement of receivables due to premature revenue recognition that inflates revenues and receivables, which assertion for the accounts receivable balance is most relevant?
Existence
During an auditing class at Youngblood State University, the professor is discussing some of the advantages to a firm of having a robust and effective system of internal control. Which of the following statements best describes some of these advantages?
Firms that have robust and effective systems of internal control are typically less prone to material misstatements in the financial statements
As part of the audit of Segal Enterprises, the external auditors, Hansen CPAs are meeting with client management to discuss which areas of the business are outsourced to third party firms. Management advises the auditors that they have recently outsourced their receivables function to a third-party service firm which now handles all recording and processing of receivables. As a result of this, which action would be the most appropriate for Hansen CPAs to take?
Hansen CPA Firm should advise the client's management that due to this function being outsourced, Hansen will need to obtain a Service Organization and Controls Report from whomever audits the firm the receivables are handled by
A notable item is an item identified from the population being analyzed that has one or more characteristics that, for a relevant assertion, may I. Be indicative of a risk of an immaterial misstatement not previously identified. II. Be indicative of a risk of higher risk of material misstatement than anticipated by the auditor. III. Provide information useful in designing or tailoring procedures to address risks of material misstatement. Which items are correct?
II and III
________ are internal controls that are performed by individuals but rely on computer generated information.
IT dependent manual controls
Coleen is the engagement partner for the audit of Blue Corporation. Coleen is discussing with the audit team about substantive analytical procedures and the factors that the team should consider regarding the reliability of data to be used. Which of the following statements is correct regarding reliability of data?
Internally-generated data is more reliable if controls over the data are effective.
As part of the external audit of Candle Co., a regional distributor of candles and other wax products, you have been assigned to audit the client's liability accounts. You are aware that since the last audit, the client conducted a bond issue. Which of the following best represents the types of evidence that you would collect to audit assertions pertaining to this area?
It is likely that you would conduct an inspection procedure to inspect documents related to the bond issue, as well as analytical procedures to calculate interest expense related to the bonds
During the audit of Hornet Inc., a large nationwide distributor of pest control products, there has been considerable discussion with the client's top management as to how the evidence required to issue an appropriate audit opinion will be obtained. Management has offered various suggestions with respect to how the information can be passed to the external auditors. Which of the following suggestions would be the most problematic for the auditor?
Management has advised that all information will first be gathered by the internal audit function to cut down on the cost of the external audit, and will then be passed to the auditors.
________ are controls that do not rely on the client's information technology (IT) environment for their operation.
Manual controls
Beth and Steve are discussing the various types of sampling methods available to auditors. Beth mentions that she believes statistical sampling methods are better, whereas Steve thinks that non-statistical sampling methods are more effective. Which of these arguments is correct?
Neither Beth nor Steve is correct. The choice of auditing method is more a matter of auditor judgment, based on experience and professional judgment.
Deana and David, two audit staff associates are discussing sampling one day after work. Deana has spent some time working with an audit team on sample selection for a major audit client. Deana tells David that she has heard the auditors on the team talking about representative samples, and asks David if he understand what this means? What should David's response be to this?
Obtaining a representative sample is important in an audit because the auditor may otherwise draw incorrect conclusions about the population.
Diane and Lynn are completing the audit of Huckleberry Enterprises and are meeting with the client to discuss the samples they plan to collect. Diane mentions that all samples collected will be randomized by the audit firm. The client asks Diane to elaborate further on the meaning of randomized samples. Which of the following represents Diane's best response to this query?
Randomized sampling is used by the auditor to obtain a representative sample of the population and reduce any bias that might otherwise exist.
During the audit of Lucky Company, the external auditor, Honest Auditors Inc. is deciding upon a procedure to help provide estimates and note actual items that may be outside of a certain range, which would then be classified as notable items and investigated further. The Audit Senior has determined that due to the seasonality of the client's business, the best procedure to use would be a regression analysis. Which of the following would provide the best rationale for this choice?
Regression analysis represents a powerful predictive statistical tool which can assist the auditor in determining expected values, and then comparing actual values to predicted values to determine notable items to investigate.
An important concept in the world of auditing is that of sampling risk. Auditors routinely must consider sampling risk as part of any audit and attestation engagement. Which of the following MOST accurately encapsulates sampling risk?
Sampling risk is best defined as the risk that the auditor reaches a different conclusion based on the sample than he or she would have if they'd tested the entire population.
Auditors perform the following when considering existence?
Search for evidence to verify that asset, liability, and equity items on the balance sheet actually exist.
Carly and Simon, two audit staff associates, are discussing audit sampling. Carly tells Simon that although she understands the premise of audit sampling, she does not understand why sampling techniques need to be randomized. What is Simon's best response to this query?
Simon should explain to Carly that the auditors try to randomize sample selection to the greatest extent possible because randomization helps to avoid bias which may otherwise cause a sample to not be representative of a population.
During an audit of Stacy Corporation, the external auditors had assessed the combined levels of inherent risk and control risk for intangible assets as high. This is because of several research and development costs capitalized by the client during the year. Which of the following is the appropriate response by the auditors in terms of its substantive procedures?
Test a larger sample size of the research and development costs
During the audit of Seabreeze Enterprises, the auditors are preparing to audit accounts receivable. The audit manager has advised the audit staff associates that the current balance of accounts receivable is $15,563,212. This amount represents which of the following?
The account balance represents a population. In this instance, the population is all accounts receivable customers and dollars.
As part of the audit of Seagram Enterprises, LLC, a national distributor of sheet metal and similar products, the external auditors, Guerrera CPAs have completed their tests of internal control and have concluded that internal control is effective. A few weeks later, the firms Chief Financial Officer unexpectedly resigns, citing personal reasons for the sudden departure. What would be the most appropriate response to this departure by the audit firm?
The audit firm should consider employing additional tests of the client's system of internal control. It is possible with the sudden departure of a key employee that the client's system of internal control may be affected or compromised, and so it would be prudent of the auditor to conduct additional tests.
An important part of any audit is the gathering of sufficient and appropriate audit evidence by the auditing team assigned to the engagement. Which of the following choices most accurately describes the types of audit evidence that an auditor might collect in order to support his or her opinion on the financial statements?
The auditor is likely to collect a wide breadth of information to either corroborate or refute the financial statement assertions made by management. The question of how much evidence and the types of evidence to collect are generally a matter of auditor judgment.
An auditor is attempting to determine the best way to audit a major client's accounts receivable. The client is a large firm with thousands of accounts receivable and a high level of automation. What might be a viable procedure the auditor could consider using to audit these accounts and balances?
The auditor might wish to adopt an audit data analytics (ADA) procedure due to the high level of automation and voluminous nature of the account transactions.
As the audit of Lily Enterprises draws to a conclusion, the audit partners with responsibility for the engagement are meeting to discuss significant audit matters. One of the partners mentions the noted deficiencies in the client's system of internal control. The most appropriate way for the auditor to communicate such deficiencies is through which of the following?
The auditor should communicate significant deficiencies in the client's system of internal control to those charged with governance through a formal management letter.
As part of the audit of Newsome Enterprises, LLC, the audit team is preparing to audit the accounts receivable balances of the client. It has been noted that the client has some accounts in this population that represent both large dollar balances and that also take longer than the average number of days to pay their balances. Based on this finding, what might be an appropriate audit sampling strategy?
The auditor should consider adopting a probability-proportionate-to-size sampling procedure, whereby accounts with higher balances are more likely to be audited.
After an initial meeting with the client's senior management, an auditor assigned to the audit of Bookbinder LLC is attempting to understand the entity-level controls enacted by the organization. Which of the following would represent the most appropriate way for the auditor to achieve this understanding?
The auditor should consider reviewing company policies and procedures as well as minutes of board of director meetings.
An auditor is attempting to determine the best sampling method for the audit population of a major client's accounts receivable. The auditor has noted that the client's accounts receivable accounts have a lot of missing data. Based on this finding, which of the following is accurate?
The auditor should consider using a traditional audit sampling technique due to accounts receivable having a lot of missing data.
During the audit of Margram Enterprises Inc., a wholesaler of farming and agricultural equipment throughout the Northeastern United States and Canada, a question has been raised by one of the audit managers working on the audit as to the information being provided to the auditor by management. Margram Enterprises is a long-time audit client, and management turnover is generally low. Which of the following choices best represents the auditors approach to evidence in this case?
The auditor should treat documentary evidence submitted by the client's management with the appropriate level of professional skepticism, confirming the accuracy, authenticity, and legitimacy of the evidence where appropriate.
During the audit of Seagrave Enterprises, LLC, a retailer of fishing and other maritime sporting equipment throughout the east coast of the United States, the external auditors, Peabody CPAs, are examining the education, experience, and qualifications of employees in key positions. The auditors have determined that these employees are competent and well qualified for their respective positions. What actions might the auditor take in response to this finding?
The auditors are likely to decrease audit risk and the risk of material misstatement.
Dana and Casey are discussing the idea of internal control after leaving their college auditing class. Dana tells Casey that internal control appears to be more tied to a firm being able to achieve its objectives, and doesn't really understand what it has to do with the external auditors. Casey agrees, adding that he doesn't see any reason why an auditor would be interested in whether or not a firm is achieving its objectives. Which of the following offers the best explanation to help Dana and Casey understand this better?
The auditors concern themselves with internal control, which is tied to a firm achieving its operational and financial objectives etc. If a client's system of internal control is weak, then there is an increased likelihood of material misstatements in the financial statements.
Candy and Steve are working on the audit of Peagram Enterprises, LLC, a distributor of frozen foods throughout the continental United States, and are attempting to assess the firm's level of segregation of duties. Which of the following represents a possible procedure they could perform to document this for the audit?
The auditors could opt to use an observation procedure, whereby they observe selected employees performing their duties.
During the audit of publicly traded Parkland LLC, the external auditor, Hewsome CPA Firm is testing the client's system of internal control early in the fiscal year. One of the auditors CPAs noted a significant internal control deficiency, of which the client's management was apprised. Upon learning of the significant deficiency in internal control, the Chief Financial Officer apprised the auditors that the firm would work to correct the deficiency as soon as possible. If Parkland LLC is able to remedy this deficiency before conclusion of the audit, what action should the auditors take?
The auditors should consider retesting the corrected internal control to ensure that the control is now effective. If evidence is gathered of the control's effectiveness, the auditors should issue a clean audit opinion on the client's system of internal control.
During the audit of the privately held Wood Company, the external auditors, Green CPAs, have noted from reviewing minutes of the board of director's meetings that there are very few external directors on the client's audit committee. What might be an appropriate response to this by the auditors?
The auditors should consider the decreased independence of the audit committee when planning audit procedures, and adjust any planned procedures accordingly.
Brian, an audit partner assigned to the audit of Macon LLC has just completed the audit of internal control. All documentation gathered and conclusions reached have been documented in the working papers associated with the audit. Which of the following is correct with respect to the conclusions reached by the audit partner?
The conclusions reached by the audit partner should be such that another auditor could review the audit and documentation gathered, and reach a similar conclusion on internal control.
Dan and Lisa are discussing the management letter which is soon to be sent by their audit firm to a client that they are wrapping up the audit of. Dan and Lisa are curious to understand when a weakness would be considered sufficient to communicate with management, and ask you, the audit manager. Your most appropriate response to this question would be which of the following?
The determination as to whether a weakness should be communicated to management is a more subjective one, and relies on the auditors' professional judgment.
Craig, an audit partner assigned to the engagement of Rostrum Enterprises is discussing the management letter with one of the audit interns, Kia. Kia is struggling to understand why the auditing firm would spend time and resources preparing and sending this letter. Which of the following choices would represent Craig's best response to Kia's question?
The drafting and transmittal of the management letter allows the auditor to notify management of observed and documented weaknesses in internal control. This communication to management also allows the auditor to observe how management responds to this notification, which provides a measure of management's concern with effective internal control.
During the audit of a client's inventory account by the external auditors, which of the following assertions pertaining to inventory are likely to be evaluated by the external auditor, and for what reason?
The existence assertion is likely to be audited to ensure that inventory levels stated in the client's account exist, and the valuation assertion to ensure that inventory is appropriately valued
Brad and Brandy, two college seniors majoring in accounting are discussing their auditing class. During their last class, the professor discussed management letters and emphasized the importance of the external auditors sending these in a timely basis. Brandy tells Brad that she doesn't see the importance of these letters, and why the auditors would spend time apprising management of things they should already know. Which of the following responses by Brad would be most appropriate?
The management letter is an important tool utilized by the external auditors to apprise management of deficiencies and weaknesses in internal control in a timely manner. The auditor can also use this communication to make recommendations to fix or improve any controls.
Dan and Asher are discussing how a machine learning model might look one day after their auditing class. Dan mentions to Asher that in order for the model to be successful and accurate, which of the following would first have to happen?
The model would first have to be fed raw, clean data. The system would need this data to proceed with any analyses.
During the audit of Awesome Corporation, Johnny, the lead auditor assigned, has been discussing with the external audit team the different factors they need to assess to determine the inherent risks involved. Which of the following examples would result in lower inherent risk assessment in relation to accounting estimates?
The process of deriving relevant and reliable data is simple
Collette, an external auditor, is planning to perform analytical procedures for Garfield Corporation. Which of the following information would make Collette conclude that there is less predictability in the data Collette is analyzing?
The related transactions which Collette is analyzing are subject to management discretion.
As part of the audit of Newberry LLC, the external auditors, Parker CPAs have noted that multiple credit sales are missing from accounts receivable. As the audit partner with overall responsibility for the engagement prepares to communicate this to the client's senior management, which of the following should be noted in the management letter?
This represents a significant deficiency due to its pervasive nature. The identified weaknesses must be remedied by the fiscal year-end date in order to receive a clean audit opinion on internal control.
During the audit of Seahorse LLC, the external auditors, Packhorse CPAs, have just completed their audit of the clients system of internal control and have documented their findings accordingly. One of Packhorse CPAs audit managers is discussing the results of the internal control audit with an audit intern, Halle. Halle is curious as to what the auditing firm will do with this information and these findings, and whether it affects any future parts of the audit. Which of the following responses is correct with respect to helping Halle understand this?
Upon completion of the audit of internal controls, the auditing firm assesses the evidence gathered and typically notifies management of any deficiencies and weaknesses found. If the auditors' conclusion is that internal control is strong, then the auditor may perform less substantive testing.
Carrie and her supervisor Michael, an audit manager assigned to the attestation engagement of Southwood Enterprises are discussing management letters. Carrie advises Michael that she understands what a management letter is, but isn't really sure of what benefits sending such a letter provides for the auditors. What is the most appropriate response by Michael to this question?
Upon sending management letters to a client's senior management, the auditors are able to gauge management's response to any notable items, which provides a measure of how management prioritizes internal control.
Brian, an audit manager assigned to the audit of Dojo Enterprises has just completed the audit of their system of internal control. One of Brian's newer audit staff associates, Delacie, is curious as to what types of detail Brian will include about internal control, and where he will document it. Which of the following represents Brian's most appropriate response?
We typically document our understanding of internal control in the working papers, and may include details like the controls we tested and our resultant conclusion about control risk.
A misstatement is defined as ________.
a difference between what is reported in the client prepared financial statements with what is required for the item to be presented fairly in accordance with the applicable financial reporting framework
An audit strategy can take ________.
a reliance on controls approach, a substantive approach, or a combination of both
An auditor mailing positive confirmations is an example of ________.
a substantive procedure
During the audit of Barron Company's receivables, the audit partner in charge of the audit noted that a common use of audit data analytics (ADA) during an audit is as a substantive test, because ADA gives the external auditor the power and ability to analyze large amounts of information simultaneously. The Audit Senior has approached you and asked you to determine an appropriate use of ADA in this context. The most appropriate response/strategy would be to use ADA in this context as ________.
a tool to match credit sales, generation of accounts receivable and subsequent cash collections to ensure existence, valuation and accuracy assertions
Auditors spend a considerable amount of total audit time on the process of obtaining and evaluating audit evidence in support of management assertions, which is sourced primarily from the client's ________.
accounting records
Auditors gathering evidence that transactions and events have been recorded at appropriate amounts consider ________.
accuracy
All substantive audit procedures performed ________.
are documented in the working papers
Analytical procedures ________.
are evaluations of financial information through analysis of plausible relationships among both financial and non-financial data
AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained and AS 2301 The Auditor's Responses to the Risks of Material Misstatement state that auditors ________.
are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase
Clustering can also be performed ________.
by graphing data in a way that allows for visual identification of groups
An observed condition that provides evidence that the control being tested did not operate as intended is called a/an ________.
control exception
Documents and files related to initiating credit sales would be ________.
customer master file and sales order
Auditors inspecting a sample of accounts payable balances listed on the ledger and verifying that they are actual payables owed by the client gather evidence in support of the ________ assertion
existence
Auditors will assess the risk of fraud by considering ________.
fraud risk factors that may be present, such as pressure and opportunities for management to commit fraud
Detective controls vary ________.
from client to client to a greater extent than Preventive controls
An audit strategy is developed ________.
in response to the risk assessment for each significant account and assertion using the formula for audit risk
An auditor working for Musgrave CPA firm has just finished the audit of a sample of accounts receivables and has concluded that no material misstatements are present. This finding could be an example of ________.
incorrect acceptance, because the auditor may incorrectly be concluding that no material misstatements exist when they actually do
An auditor working for Musgrave CPA firm has just finished the audit of a sample of accounts receivables and has concluded that material misstatements are present. This finding could be an example of ________.
incorrect rejection because the auditor may incorrectly be concluding that material misstatements exist when they actually do not
Auditors communicating directly with a client's bank regarding the existence of the client's cash account balances at year-end would be an example of an ________
independent source
Audit evidence will typically consist of ________.
information that supports and corroborates management's assertions and any information that contradicts the assertions
An auditor asking the employee who prepares the bank reconciliation how reconciling items are identified would be an example of ________.
inquiry
Accounting estimates, by their nature ________.
involve subjective decision making on the part of management
An important aspect of selecting a sample ________.
involves determining the population and sampling unit
A dual-purpose test ________.
involves the auditors designing a test of controls and a substantive test of details to be performed at the same time on the same transaction
An entity's risk assessment process ________.
is its process for identifying and responding to risks that an organization will not achieve its objectives
After auditors have completed testing controls and drawn a conclusion about control risk, they ________.
make decisions about the nature, timing, and extent of substantive testing
An important outcome of understanding the client's system of internal control is the auditor's ability to ________.
make observations, draw conclusions and offer recommendations regarding the strengths and weaknesses observed
An effective control environment suggests that ________.
management and those charged with governance demonstrate a commitment to ethical values and strong internal control
A number of substantive tests of details involve ________.
matching information in the accounting records with information on underlying documents
As part of the audit of TableTop LLC, a manufacturer of high-end specialized furniture, the partners of the external auditors, CPI Auditing Inc. are meeting to discuss which audit procedures may be more appropriate in this case. The auditors are interested in learning more about the quantities of materials that go into the products sold by TableTop LLC. A method the auditor could use to achieve this would be to ________
perform an observation procedure, which may involve either the auditor or a specialist observing the materials used and the processes conducted in order to manufacture the products
AS 2315 and AU-C 530 on Audit Sampling ________.
provide guidance on audit sampling
As per the COSO Framework, one of the reporting objectives of internal control pertains to ________.
reliability and transparency
Auditors gathering evidence to verify that recorded assets are owned by the entity and recorded liabilities represent commitments of the entity consider ________.
rights and obligations
A bill of lading is a (an) ________.
shipping document serving as acknowledgement of receipt of goods for delivery by a freight carrier
A common software-based audit technique involves ________.
submitting certain test data into the client's software application while the auditor is in control of the software
After the auditor completes test of controls and draws conclusion about control risk, the auditor makes decisions about the nature, timing, and extent of ________.
substantive testing
A reliance on controls strategy would involve ________.
the auditor performing primarily tests of controls
An example of a vouching procedure might be ________.
the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the existence of a bill of lading, and prices to the sales order
After the auditor has completed test of controls and drawn a conclusion about control risk, ________.
the auditor will want to make decisions about the nature, timing and extent of substantive testing
Cluster analysis is defined as ________.
the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar
Audit sampling is defined as ________.
the selection and evaluation of less than 100 percent of the population such that the auditor expects the items selected (the sample) to be representative of the population, and thus, likely to provide a reasonable basis for conclusions about the population
After auditors have assessed control risk ________.
they are in a good position to evaluate the risk of fraud
During the audit of Ransom Enterprises, a large manufacturer of personal computing devices, the auditor, StrongBow CPAs is concerned that it will take them an inordinate amount of time to effectively audit some accounts due to the sheer volume of transactions in these accounts. A viable suggestion to handle this problem could be ________.
to consider employing audit data analytics (ADA) as an automated tool to search for issues and areas that may require further investigation
A control ensuring that sales are recorded in the sales ledger is a/an ________-level control.
transaction
Auditors are willing to accept a higher risk that their audit procedures may not detect a material misstatement ________
when detection risk is high
