Gleim Final Chapter 8-12, 24
Independent CPAs perform audits on the financial statements of issuers. This type of auditing can best be described as
A discipline that attests to financial information presented by management.
Which of the following situations represents a risk factor that relates to misstatements arising from misappropriation of assets?
A lack of independent checks.
Which of the following statements about internal control is true?
A limitation of internal control is that management makes judgments about the extent of controls it implements.
In an integrated audit, an auditor should issue an adverse opinion on the effectiveness of an entity's internal control in which of the following situations?
A material weakness exists.
Which of the following would not necessarily be a related party transaction?
A sale to another corporation with a similar name.
The refusal of a client's legal counsel to provide a representation on the legality of a particular act committed by the client is ordinarily
A scope limitation.
It is important for the auditor to consider the competence of the audit client's employees, because their competence bears directly and importantly upon the
Achievement of the objectives of internal control.
Analytical procedures performed to assist in forming an overall conclusion suggest that several accounts have unexpected relationships. The results of these procedures most likely indicate that
Additional audit procedures are required.
During the audit of internal controls integrated with the audit of the financial statements, the auditor discovered a material weakness in internal control. The auditor most likely will express a(n)
Adverse opinion on internal control.
A major customer of an audit client suffers a fire just prior to completion of year-end field work. The audit client believes that this event could have a significant direct effect on the financial statements. The auditor should
Advise management to disclose the event in notes to the financial statements.
In an audit of financial statements, an auditor's primary consideration regarding an internal control is whether the control
Affects management's financial statement assertions.
Financial statement audit plans usually should be developed
After the auditor has established the overall audit strategy
Which of the following parties should an auditor notify first when discovering an immaterial fraud is committed by an accounting clerk?
An appropriate level of management.
Which of the following best describes a CPA's engagement to report on an entity's internal control over financial reporting?
An audit engagement that results in issuance of a report relating to the effectiveness of internal control.
Which of the following is required documentation in an audit in accordance with auditing standards?
An audit plan documenting the procedures to be used to reduce audit risk.
Which of the following statements concerning noncompliance with laws and regulations by clients is correct?
An auditor has responsibility to detect noncompliance with laws and regulations that has a direct effect on the financial statements.
In an audit of a nonissuer's financial statements, projected misstatement is
An auditor's best estimate of misstatements in a population extrapolated from misstatements identified in an audit sample.
Each of the following statements is correct regarding the likely sources of potential misstatements in an integrated audit except
An evaluation of the entity's information technology risk and controls should be performed separately from the top-down approach.
Control activities constitute one of the five components of internal control described in the COSO model. Control activities do not encompass
An internal auditing function.
Which of the following statements about analytical procedures is true?
Analytical procedures alone may provide the appropriate level of assurance for some assertions.
Which of the following is an effective audit planning and control procedure that helps prevent misunderstandings and inefficient use of audit personnel?
Arrange a preliminary conference with the client to discuss audit objectives, fees, timing, and other information.
The acceptable level of detection risk is inversely related to the
Assurance provided by substantive procedures.
Analytical procedures are required for which of the following?
Audit planning.
Which of the following statements describes why a properly planned and performed audit may not detect a material misstatement due to fraud?
Audit procedures that are effective for detecting an error may be ineffective for detecting fraud that is concealed through collusion.
Who establishes generally accepted auditing standards?
Auditing Standards Board and the Public Company Accounting Oversight Board.
An auditor's decision either to apply analytical procedures as substantive procedures or to perform tests of transactions and account balances usually is determined by the
Auditor's determination about whether audit risk can be sufficiently reduced.
An auditor is concerned with completing various phases of the audit after the balance sheet date. This subsequent period extends to the date of the
Auditor's report
Subsequent events are defined as events that occur subsequent to the
Balance sheet date but prior to the auditor's report date.
Snow, CPA, was engaged by Master Co., a nonissuer, to audit the effectiveness of Master's internal control over financial reporting as part of an integrated audit. Snow's report should state that
Because of inherent limitations, internal control may not prevent, or detect and correct, misstatements
Which of the following statements correctly describes the "top-down approach" used during an audit of internal control over financial reporting?
Begin by understanding the overall risks to internal control over financial reporting at the financial statement level.
An auditor has withdrawn from an audit engagement of an issuer after finding fraud that may materially affect the financial statements. The auditor should set forth the reasons and findings in communication to the
Board of directors.
Which of the following factors does a CPA ordinarily consider in the planning stage of an audit engagement?
Both I and II
Issuers are required by the PCAOB to obtain an auditor's report attesting to the effectiveness of internal control over financial reporting (AS 2201). Likewise, nonissuers may retain an auditor to issue a report on internal control in accordance with the AICPA's auditing standards (AU-C 940). Which of the following statements best characterizes the relation between these two standards?
Both the AICPA standards and the PCAOB standards require management to provide a written assessment or assertion concerning the effectiveness of controls.
Audit risk at the assertion level consists of inherent risk, control risk, and detection risk. Which of the following statements is true?
Cash has a greater inherent risk than an inventory of coal because it is more susceptible to theft.
Which of the following is an analytical procedure?
Comparing current-year balances to prior-year balances.
Which of the following factors would most likely cause an auditor not to accept a new audit engagement?
Concluding that the entity's management probably lacks integrity.
An auditor's consideration of the risk of material misstatement due to fraud and the results of audit tests indicate a significant risk of fraud. The auditor should
Consider withdrawing from the engagement and communicating the reasons for withdrawal to those charged with governance.
Misstatements discovered by the auditor were immaterial in the aggregate in prior years. Such misstatements should be
Considered in the evaluation of audit findings in the current year.
Certain individuals may have an attitude, character, or set of values that permit them to rationalize fraud. Moreover, individuals may have an incentive or be under pressure to commit fraud, or circumstances may provide an opportunity. The auditor's concern about the risk of material misstatements due to fraud is least likely to be increased if management
Consists of many individuals that make operating and financing decisions.
The design or operation of a control may not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. According to AU-C 265, this circumstance is a
Control deficiency.
Which of the following best describe the interrelated components of internal control?
Control environment; risk assessment process; control activities; the information system, including related business processes; and monitoring of controls.
The primary reason an auditor requests letters of inquiry be sent to a client's legal counsel is to provide the auditor with
Corroboration of the information furnished by management about litigation, claims, and assessments.
Subsequent events affecting the realization of assets ordinarily will require adjustment of the financial statements under audit because such events typically represent the
Culmination of conditions that existed at the balance sheet date.
Monitoring of controls is an important component of internal control. Which of the following items is not an example of monitoring?
Data processing management regularly reconciles batch control totals for items processed with batch controls for items submitted.
Under the Private Securities Litigation Reform Act of 1995, Baker, CPA, reported certain noncompliance with laws and regulations to Supermart's board of directors. Baker believed that failure to take remedial action would warrant a qualified audit opinion because the noncompliance had a material effect on Supermart's financial statements. Supermart failed to take appropriate remedial action, and the board of directors refused to inform the SEC that it had received such notification from Baker. Under these circumstances, Baker is required to
Deliver a report concerning the noncompliance to the SEC within 1 business day.
The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such misstatement does exist is
Detection risk
When planning an audit, an auditor should
Determine materiality for the financial statements as a whole.
Firms subject to the reporting requirements of the Securities Exchange Act of 1934 are required by the Foreign Corrupt Practices Act of 1977 to maintain satisfactory internal control. Moreover, the Sarbanes-Oxley Act of 2002 requires that annual reports include (1) a statement of management's responsibility for establishing and maintaining adequate internal control and procedures for financial reporting, and (2) management's assessment of their effectiveness. The role of the registered auditor relative to the assessment made by management is to
Determine whether management's report is complete and properly presented
Subsequent to the date of the auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. The auditor should
Determine whether the financial statements need revision.
Which of the following would be considered an analytical procedure?
Developing the current year's expected net sales based on the entity's sales trend of prior years.
Which of the following circumstances most likely will cause an auditor to suspect that material misstatements exist in a client's financial statements?
Differences between reconciliations of control accounts and subsidiary records are not investigated.
Cain Company's management engaged Bell, CPA, to audit the effectiveness of Cain's internal control over financial reporting. Bell's report, which was accompanied by management's separate report presenting its written assessment about the effectiveness of internal control, described several material weaknesses and potential errors and fraudulent activities that could occur. Subsequently, management included Bell's report in its annual report to the board of directors with a statement that the cost of correcting the weaknesses would exceed the benefits. Bell should
Disclaim an opinion as to management's cost-benefit statement.
Which of the following would be least likely to be comparable between similar corporations in the same industry line of business?
Earnings per share.
Internal control cannot be designed to provide reasonable assurance regarding the achievement of objectives concerning
Elimination of all fraud.
The objective of analytical procedures performed as risk assessment procedures is to
Enhance the auditor's understanding of the client's business.
Directors, management, external auditors, and internal auditors all play important roles in creating proper control processes. Senior management is primarily responsible for
Establishing risk management and control processes.
When an auditor becomes aware of a possible act of noncompliance with laws or regulations, the auditor should obtain an understanding of the nature of the act to
Evaluate the effect on the financial statements.
Which of the following procedures can be performed only after the date of the financial statements?
Examination of data to determine that a proper cutoff has been made.
If an auditor performing an integrated audit identifies one or more material weaknesses in a nonissuer's internal control, the auditor should
Express an adverse opinion on the entity's internal control.
The risks of material misstatement (RMMs) should be assessed in terms of
Financial statement assertions.
engagement. In developing written audit plans, an auditor should design specific audit procedures that relate primarily to the
Financial statement assertions.
Which of the following most accurately describes the process of a walkthrough
Following a transaction from its origination until it is reflected in the financial statements.
Which of the following most accurately describes the process of a walkthrough?
Following a transaction from its origination until it is reflected in the financial statements.
The organization chart is a graphic representation of the
Formal authority structure.
Which of the following items is an example of an inherent limitation in an internal control system?
Human error in decision making.
Disclosure of possible fraud to parties other than the client's senior management and those charged with governance ordinarily is not part of an auditor's responsibility. However, to which of the following outside parties may a duty to disclose possible fraud exist? I. To the SEC when the client reports an auditor change II. To a successor auditor when the successor makes appropriate inquiries III. To a government funding agency from which the client receives financial assistance
I, II, and III.
An auditor most likely obtains an understanding of a new client to
Identify areas of audit emphasis.
Which of the following is a step in an auditor's decision to rely on internal controls?
Identify specific controls that are likely to prevent, or detect and correct, material misstatements and perform tests of controls.
An entity should consider the cost of a control in relationship to the risk. Which of the following controls best reflects this philosophy for a large dollar investment in heavy machine tools?
Imprinting a controlled identification number on each tool.
Which of the following is an aspect of scheduling and controlling the audit engagement?
Include in the audit plan a column for estimated and actual time.
Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity's internal control?
Incompatible duties.
After issuing an auditor's report, an auditor has no obligation to make continuing inquiries about audited financial statements unless
Information that existed at the report date and may affect the report comes to the auditor's attention.
Some account balances, such as those for pensions or leases, are the results of complex calculations. The susceptibility to material misstatements in these types of accounts is defined as
Inherent risk.
Which of the following procedures will an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
Inquiring as to whether any unusual adjustments were made after year end.
The Committee of Sponsoring Organizations (COSO) of the Treadway Commission issued a document in 1992 that has been embraced by numerous organizations, including the AICPA and the GAO. That document is titled
Internal Control--Integrated Framework.
In a financial statement audit of a nonissuer, an auditor would consider a judgmental misstatement to be a misstatement that
Involves an estimate.
A CPA's understanding of internal control in a financial statement audit of a nonissuer
Is usually more limited than that made in an audit of internal control integrated with an audit of financial statements.
With respect to the auditor's planning of a year-end audit, which of the following statements is always true?
It is an acceptable practice to carry out part of the audit at interim dates.
Which of the following statements is correct with respect to fraud encountered during an audit engagement of a nonissuer?
It is often difficult to detect fraudulent intent in matters involving accounting estimates and the application of accounting principles.
Manual controls would most likely be more suitable than automated controls for which of the following?
Large, unusual, or nonrecurring transactions.
An auditor's preliminary analysis of accounts receivable turnover revealed the following rates over these accounting periods: Year 3 Year 2 Year 1 4.3 6.2 7.3 Which of the following is the most likely cause of the decrease in accounts receivable turnover?
Liberalization of credit policy.
Which of the following events requires adjustment to the financial statements for the year ended December 31, Year 1?
Loss on an accounts receivable as the result of a customer suffering a deteriorating financial condition that led to bankruptcy filing in January Year 2.
Before accepting an engagement to audit a new client, an auditor is required to
Make inquiries of the predecessor auditor after obtaining the consent of the prospective client.
Which of the following circumstances would an auditor most likely consider a risk factor relating to misstatements arising from fraudulent financial reporting?
Management is interested in maintaining the entity's earnings trend by using aggressive accounting practices.
During the annual audit of Ajax Corp., an issuer, Jones, CPA, a continuing auditor, determined that illegal political contributions had been made during each of the past 7 years, including the year under audit. Jones notified the board of directors about the illegal contributions, but they refused to take any action because the amounts involved were immaterial to the financial statements. Jones should reconsider the intended degree of reliance to be placed on the
Management representation letter.
An auditor's engagement letter most likely will include
Management's acknowledgment of its responsibility for maintaining effective internal control.
Which of the following would an auditor most likely consider in evaluating the control environment of an audit client?
Management's operating style.
Internal controls are designed to provide reasonable assurance that
Material errors or fraud will be prevented, or detected and corrected, within a timely period by employees in the course of performing their assigned duties.
The ultimate purpose of understanding internal control is to contribute to the auditor's evaluation of the risk that
Material misstatements may exist in the financial statements.
The audit risk against which the auditor and those who rely on his or her opinion require reasonable protection is a combination of two separate risks at the assertion level. The first risk (consisting of inherent risk and control risk) is that balances, classes of transactions, or disclosures contain material misstatements. The second is that
Material misstatements that occur will not be detected by the audit.
Based on new information gained during an audit of a nonissuer, an auditor determines that it is necessary to modify materiality for the financial statements as a whole. In this circumstance, which of the following statements is accurate?
Materiality levels for particular classes of transactions, account balances, or disclosures might also need to be revised.
Madison Corporation has a few large accounts receivable that total $1,000,000. Nassau Corporation has a great number of small accounts receivable that also total $1,000,000. The importance of a misstatement in any one account is therefore greater for Madison than for Nassau. This is an example of the auditor's concept of
Materiality.
Subsequent events that provide evidence of conditions that arose subsequent to the date of the financial statements
May require disclosure in notes to the financial statements.
As the acceptable level of detection risk decreases, an auditor may change the
Nature of substantive procedures from a less effective to a more effective procedure.
After year end but before completion of the audit, a major investment adviser issued a pessimistic report on Investee Co.'s long-term prospects. The market price for its common stock subsequently declined significantly. What is the effect of this event on the year-end statements?
No financial statement disclosure necessary.
Advertiser Co.'s directors voted immediately after year end to double the advertising budget for the coming year and authorized a change in advertising agencies. What is the effect of this event on the year-end statements?
No financial statement revision.
Which of the following procedures concerning accounts receivable is an auditor most likely to perform to obtain evidence in support of the effectiveness of controls?
Observing an entity's employee prepare the schedule of past due accounts receivable.
Audit evidence concerning undocumented monitoring controls ordinarily is best obtained by
Observing the employees as they apply controls.
Regarding a nonissuer's compliance with laws and regulations, an auditor performing an audit of the entity's financial statements is responsible for
Obtaining a general understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework.
The auditor should perform tests of controls when the auditor's risk assessment includes an expectation
Of the operating effectiveness of internal control.
Control activities include physical controls over access to and use of assets and records. A departure from the purpose of such procedures is that
Only storeroom personnel and line supervisors have access to the raw materials storeroom.
In developing an audit plan, an auditor should
Perform risk assessment procedures.
In an audit of financial statements for which an auditor's assessment of risk is judgmental and may not be sufficiently precise to identify all risks of material misstatement, the auditor should take which of the following actions?
Perform substantive procedures for all relevant assertions related to each material class of transactions.
Which of the following statements about materiality is most likely to be true?
Performance materiality is less than materiality for the financial statements as a whole.
Which of the following is an engagement attribute for an audit of an entity that processes most of its financial data in electronic form without any paper documentation?
Performance of audit tests on a continuous basis.
Which of the following procedures would an auditor most likely use to identify unusual year-end transactions?
Performing analytical procedures.
Audit planning for an initial audit most likely includes
Performing procedures involving opening balances
Some subsequent events provide evidence of conditions not in existence at the balance sheet date. Under U.S. GAAP, some of these events are of such a nature that disclosure is required to keep the financial statements from being misleading. Adequate disclosure of these events may
Pro forma financial statement presentation.
Three conditions are generally present in the client's organization when fraud occurs. Those conditions include each of the following except a(n)
Professional skepticism about the likelihood of fraud.
Because of the risk of material misstatement due to fraud, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of
Professional skepticism.
An issuer who is an accelerated filer subject to the Securities Exchange Act of 1934 is required to include in its annual report an auditor's opinion on whether internal control over financial reporting was
Properly designed and operated effectively.
The Sarbanes-Oxley Act of 2002 (SOX) requires management of issuers to do all of the following except
Provide a statement that the board approves changes in internal control procedures.
Directors, management, external auditors, and internal auditors all play important roles in creating proper control processes. Senior management is primarily responsible for The primary reason to establish internal control is to
Provide reasonable assurance that the objectives of the organization are achieved.
An auditor has found that the notes to the financial statements do not mention that, 15 days after the balance sheet date, the company issued a substantial amount of debentures. According to the company's attorney, the debenture agreement restricts the payment of future cash dividends. The client has declined to include the matter of the debentures in the notes because the issuance occurred after the balance sheet date. The auditor should
Provide the missing information in the report and express a qualified opinion.
If new information becomes available that could require a reevaluation of the quantitative level of materiality applied during an audit of an issuer, then the auditor should
Raise or lower the materiality level as appropriate to the situation.
Which of the following procedures should an auditor ordinarily perform regarding subsequent events?
Read the latest subsequent interim financial statements.
A proper segregation of duties requires that an individual
Recording a transaction not compare the accounting record of the asset with the asset itself.
Which of the following circumstances would permit an independent auditor to accept an engagement after the close of the fiscal year?
Remedy of limitations resulting from accepting the engagement after the close of the end of the year, such as those relating to the existence of physical inventory.
Moor, CPA, discovers a likely fraud during an audit but concludes that its effects, if any, could not be so material as to affect the opinion. Moor most likely should
Report the finding to the appropriate representatives of the client with the recommendation that it be pursued to a conclusion.
The audit work performed by each assistant should be reviewed to determine whether it was adequately performed and to evaluate whether the
Results are consistent with the conclusions to be presented in the auditor's report.
Which of the following statements about the auditor's response to assessed risks of material misstatement in a financial statement audit is true?
Risk assessment procedures performed to obtain an understanding of an entity's internal control also may serve as tests of controls.
Which of the following is a component of internal control?
Risk assessment.
Which of the following is an auditor least likely to perform in planning a financial statement audit?
Selecting a sample of vendors' invoices for comparison with receiving reports.
Which of the following events most likely would indicate the existence of related party transactions?
Selling real estate at a price that differs significantly from its appraised value.
One of the primary roles of an engagement work program is to
Serve as a tool for planning and conducting engagement work.
If internal control is properly designed, the same employee may be permitted to
Sign checks and also cancel supporting documents.
Regardless of the assessed risks of material misstatement, an auditor should perform some
Substantive procedures to restrict detection risk for significant transaction classes.
Analytical procedures can best be categorized as
Substantive procedures.
When a contingency is resolved immediately subsequent to the issuance of financial statements with a report that included a paragraph emphasizing the contingency, the auditor should
Take no action regarding the event.
Which of the following is an example of an inherent risk that an auditor should consider?
Technological developments that may render inventory obsolete.
Which of the following statements best expresses the auditor's responsibility with respect to events occurring after the balance-sheet date?
The auditor is responsible for identifying subsequent events affecting the financial statements.
Management of an issuer subject to SEC requirements requests the auditor to report on whether a previously reported material weakness in internal control continues to exist. The request comes 3 months after the annual audited financial statements and report on internal control were released
The auditor may accept the engagement if management provides a statement that the identified material weakness no longer exists.
Management of an issuer subject to SEC requirements requests the auditor to report on whether a previously reported material weakness in internal control continues to exist. The request comes 3 months after the annual audited financial statements and report on internal control were released.
The auditor may accept the engagement if management provides a statement that the identified material weakness no longer exists.
In a financial statement audit,
The auditor should inquire of management about violations of laws and regulations as well as inspect correspondence with regulatory authorities.
Which of the following ultimately determines the specific audit procedures necessary to provide an independent auditor with a reasonable basis for the expression of an opinion?
The auditor's judgment.
An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. For an auditor of a nonissuer, this understanding generally includes
The auditor's responsibility for ensuring that management and those charged with governance are aware of any significant deficiencies or material weaknesses in control that come to the auditor's attention.
The Sarbanes-Oxley Act of 2002 requires management to include a report on internal control in the firm's annual report. It also requires auditors to evaluate management's internal control report. Which of the following statements concerning these requirements is false?
The auditors should provide recommendations for improving internal control in their assessment.
When determining whether uncorrected misstatements are material, individually or in the aggregate, an auditor of a nonissuer would consider each of the following, except
The cost of correcting the misstatements.
Internal control can provide only reasonable assurance of achieving an entity's control objectives. The likelihood of achieving those objectives is affected by which limitation inherent to internal control?
The cost of internal control should not exceed its benefits.
Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatements arising from fraudulent financial reporting?
The entity's industry is experiencing declining customer demand.
Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality for the financial statements as a whole?
The entity's year-to-date financial results and position.
A client decides not to correct misstatements communicated by the auditor that collectively are not material and wants the auditor to issue the report based on the uncorrected numbers. Which of the following statements is correct regarding the financial statement presentation?
The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements.
On January 15, Year 2, before the Mapleview Co. released its financial statements for the year ended December 31, Year 1, it settled a long-standing lawsuit. A material loss resulted and no prior liability had been recorded. How should this loss be disclosed or recognized?
The financial statements should be adjusted to recognize the loss.
In planning the audit engagement, the auditor should consider each of the following except
The kind of opinion (unmodified, qualified, or adverse) that is likely to be expressed
Which of the following is a true statement concerning an engagement to examine the effectiveness of an entity's internal control over financial reporting?
The management evaluates the effectiveness of internal control.
The concepts of audit risk and materiality are interrelated and must be considered together by the auditor. Which of the following is true?
The phrase in the auditor's report "present fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America" indicates the auditor's belief that the financial statements as a whole are not materially misstated.
Based on an understanding of internal control completed at an interim date, the auditor assessed the risks of material misstatement at the relevant assertion level and performed interim substantive procedures. The records will most likely be tested again at year end if
The remaining period is long.
Inherent risk is
The susceptibility of an assertion to a material misstatement before consideration of related internal controls.
Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement?
There will be a client-imposed scope limitation.
The element of the audit-planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the
Timing of inventory observation procedures to be performed.
Which of the following circumstances most likely will cause an auditor to consider whether material misstatements due to fraud exist in an entity's financial statements?
Transactions selected for testing are not supported by proper documentation.
When expressing an unmodified opinion, the auditor who evaluates the audit findings should determine whether
Uncorrected misstatements are material.
The objective of performing analytical procedures in planning an audit is to identify the existence of
Unusual transactions and events
Which of the following factors has the least influence on an auditor's consideration of the reliability of data for purposes of analytical procedures?
Whether the data were processed in a computer system or in a manual accounting system.
Which of the following are considered control environment factors? Detection Risk Human Resources Policies and Practices
no, yes
In assessing whether to accept a client for an audit engagement, a CPA should consider the Answers Client's Business Risk Risk CPA's Business
yes,yes
When assessing the risks of material misstatement at a low level, an auditor is required to document the auditor's Understanding of the Entity's Control Environment Overall Responses to Assessed Risks
yes,yes
Which of the following audit risk components may be assessed in nonquantitative terms? Control Risk Detection Risk Inherent Risk
yes,yes,yes
Which of the following audit risk components may be assessed in nonquantitative terms? Control Risk Detection Risk Inherent Risk
yes,yes,yes
