Auditor's Assessment of Control Risk Quiz

Play an AI-generated podcast conversation about this lesson

Which of the following is NOT a risk assessment procedure the auditor should perform to obtain an understanding of the entity and its environment, including its internal control?

Observation and inspection

Inquiries of management and others within the entity

Analytical procedures (correct)

Reperformance

What is the primary purpose of the audit risk model?

For planning purposes in determining how much evidence to accumulate (correct)

To evaluate the evidence which has been gathered

While doing tests of controls

To determine the type of opinion to express

Which of the following is most likely to identify an abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories during the planning phase of the audit?

Specialized audit programs

Tests of transactions and balances

A preliminary review of internal control

Analytical procedures (correct)

What is the primary purpose for internal auditors to review the adequacy of the company's internal control system?

To determine whether the internal control system ensures that financial statements are fairly presented Signup and view all the answers

Which of the following is NOT a risk assessment procedure the auditor should perform to obtain an understanding of the entity and its environment, including its internal control?

Performing substantive procedures Signup and view all the answers

Which of the following is the primary purpose of the audit risk model?

For planning purposes in determining how much evidence to accumulate Signup and view all the answers

What is the primary purpose of assessing the adequacy of the available evidential matter during audit planning?

To provide assurance that potential material misstatement will be identified Signup and view all the answers

Which of the following is the most accurate statement about the role of analytical procedures in an audit?

Analytical procedures may provide the best available information for the completeness assertion Signup and view all the answers

Which of the following is the primary purpose of the auditor's review of the company's internal control system?

To provide reasonable assurance that the company's objectives and goals are met efficiently and economically Signup and view all the answers

Which of the following best describes the role of analytical procedures in providing assurance about the completeness assertion?

Analytical procedures may provide the best available information for the completeness assertion Signup and view all the answers

What is the primary purpose of using analytical procedures during the planning stage of an audit?

To enhance the auditor's understanding of the client's business Signup and view all the answers

Which of the following is the most important role of the auditor's review of the internal control system?

To provide reasonable assurance that the company's objectives and goals are met efficiently and economically Signup and view all the answers

What is the primary objective of an auditor's assessment of control risk?

To determine the extent of reliance on internal controls for substantive testing Signup and view all the answers

Which of the following procedures is not part of an auditor's assessment of control risk?

Performing tests of details of transactions to detect material misstatements Signup and view all the answers

If an auditor assesses control risk at a lower level, what impact does it have on the planned level of detection risk?

The planned level of detection risk can be decreased Signup and view all the answers

Which of the following scenarios would not warrant a reduction in the planned level of detection risk?

The auditor identifies significant deficiencies in the entity's internal control system Signup and view all the answers

Which of the following services is least likely to be structured as an attest engagement?

A consulting engagement to develop a new database system for the revenue cycle Signup and view all the answers

If an auditor plans to rely on the assessments of inherent risk and control risk, what impact would it have on the planned level of detection risk?

The planned level of detection risk would need to be decreased Signup and view all the answers

Auditor's Assessment of Control Risk Quiz

Choose a study mode

Podcast

Questions and Answers

Which of the following is NOT a risk assessment procedure the auditor should perform to obtain an understanding of the entity and its environment, including its internal control?

What is the primary purpose of the audit risk model?

Which of the following is most likely to identify an abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories during the planning phase of the audit?

What is the primary purpose for internal auditors to review the adequacy of the company's internal control system?

Which of the following is NOT a risk assessment procedure the auditor should perform to obtain an understanding of the entity and its environment, including its internal control?

Which of the following is the primary purpose of the audit risk model?

What is the primary purpose of assessing the adequacy of the available evidential matter during audit planning?

Which of the following is the most accurate statement about the role of analytical procedures in an audit?

Which of the following is the primary purpose of the auditor's review of the company's internal control system?

Which of the following best describes the role of analytical procedures in providing assurance about the completeness assertion?

What is the primary purpose of using analytical procedures during the planning stage of an audit?

Which of the following is the most important role of the auditor's review of the internal control system?

What is the primary objective of an auditor's assessment of control risk?

Which of the following procedures is not part of an auditor's assessment of control risk?

If an auditor assesses control risk at a lower level, what impact does it have on the planned level of detection risk?

Which of the following scenarios would not warrant a reduction in the planned level of detection risk?

Which of the following services is least likely to be structured as an attest engagement?

If an auditor plans to rely on the assessments of inherent risk and control risk, what impact would it have on the planned level of detection risk?

More Like This

Understanding Entity's Internal Control System

Auditor's Understanding of Entity's Process for Monitoring Internal Co...

Examen Auditor Especialista 2

Auditor's Tests of Controls and Control Risk Assessment

Upgrade to continue