Audit and Assurance: Responses to Assessed Risks
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Questions and Answers

What is the objective of the auditor in response to assessed risks?

  • To minimize the number of assessed risks
  • To obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement (correct)
  • To delegate the response to assessed risks to the entity
  • To ignore the assessed risks and proceed with the audit process

    • What are the types of responses to the assessed risks of material misstatements?

  • Only at the assertion level
  • At the risk assessment level
  • At the financial statement level and at the assertion level (correct)
  • Only at the financial statement level

    • What is the purpose of audit procedures in response to assessed risks?

  • To speed up the audit process
  • To rely solely on entity-produced information
  • To gather sufficient and appropriate audit evidence to reduce the audit risk to an acceptably low level (correct)
  • To increase the audit risk to challenge the entity

    • What is the relationship between audit techniques, audit procedures, and assertions?

    <p>They are interconnected in gathering audit evidence and evaluating assertions</p> Signup and view all the answers

    What is one of the submodules under 'Response to Assessed Risks'?

    <p>Audit Sampling</p> Signup and view all the answers

    What is the objective of the auditor in obtaining sufficient appropriate audit evidence?

    <p>To reduce the audit risk to an acceptably low level</p> Signup and view all the answers

    What is the nature of the audit procedures designed to gather sufficient and appropriate audit evidence?

    <p>Specific to each assessed risk of material misstatement</p> Signup and view all the answers

    What are the types of responses to the assessed risks of material misstatements?

    <p>At the financial statement level and at the assertion level</p> Signup and view all the answers

    What is the relationship between audit techniques, audit procedures, and assertions?

    <p>Audit procedures are performed using audit techniques to address assertions</p> Signup and view all the answers

    What is the purpose of responses to significant risks?

    <p>To obtain sufficient appropriate evidence regarding significant risks of material misstatement</p> Signup and view all the answers

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