Podcast
Questions and Answers
What responds to risk assessment for each significant account and assertion?
What responds to risk assessment for each significant account and assertion?
- RMM
- Nature & Timing (correct)
- Audit Risk Model
- Extent
Which factor has an inverse relationship with Detection Risk (DR)?
Which factor has an inverse relationship with Detection Risk (DR)?
- Inherent Risk (IR)
- Risk of Material Misstatement (RMM) (correct)
- Extent
- Control Risk (CR)
What happens to the amount of substantive testing required as the Risk of Material Misstatement (RMM) increases?
What happens to the amount of substantive testing required as the Risk of Material Misstatement (RMM) increases?
- It is not affected
- It remains the same
- It decreases
- It increases (correct)
In the Audit Risk Model, which factors make up the Risk of Material Misstatement (RMM)?
In the Audit Risk Model, which factors make up the Risk of Material Misstatement (RMM)?
What should the auditor do to obtain sufficient appropriate audit evidence?
What should the auditor do to obtain sufficient appropriate audit evidence?
What is the purpose of substantive audit procedures?
What is the purpose of substantive audit procedures?
Which assertion is related to the completeness assertion for transactions?
Which assertion is related to the completeness assertion for transactions?
What do tests of details aim to verify?
What do tests of details aim to verify?
Which assertion is related to the accuracy, valuation, and allocation for account balances?
Which assertion is related to the accuracy, valuation, and allocation for account balances?
What is the main focus of risk assessment in relation to substantive audit procedures?
What is the main focus of risk assessment in relation to substantive audit procedures?
In relation to substantive audit procedures, what is the purpose of vouching?
In relation to substantive audit procedures, what is the purpose of vouching?
What is the main focus of Analytical Procedures in auditing?
What is the main focus of Analytical Procedures in auditing?
When are Computer Assisted Audit Techniques (CAATS) and Automated Data Analysis (ADAs) more useful?
When are Computer Assisted Audit Techniques (CAATS) and Automated Data Analysis (ADAs) more useful?
In auditing, what does CAS 540 require regarding the audit of estimates?
In auditing, what does CAS 540 require regarding the audit of estimates?
Why is it important for auditors to understand the client's business?
Why is it important for auditors to understand the client's business?
What is the purpose of documenting, interpreting, and concluding on audit results?
What is the purpose of documenting, interpreting, and concluding on audit results?
What is a key aspect of evaluating results for financial statement analysis?
What is a key aspect of evaluating results for financial statement analysis?
