Podcast
Questions and Answers
Which phase of the audit is the most expensive?
Which phase of the audit is the most expensive?
- Issuance of Audit Report
- Test of Transactions
- Observation of the application of specific policies and procedures
- Substantive Testing (correct)
Which of the following is NOT a feature of Substantive Testing?
Which of the following is NOT a feature of Substantive Testing?
- Substantiating management's assertion
- Assessing presentation and disclosure of items in the FS
- Determining the effectiveness of controls (correct)
- Evaluating results and preparing audit reports
Which of the following is NOT a factor that determines the nature, timing, and extent of Substantive Testing?
Which of the following is NOT a factor that determines the nature, timing, and extent of Substantive Testing?
- Assessed level of control risk
- Detection risk
- Extent of losses (correct)
- Materiality of losses
Which of the following is NOT an opinion that can be issued in an audit report?
Which of the following is NOT an opinion that can be issued in an audit report?
What is the purpose of the Test of Transactions?
What is the purpose of the Test of Transactions?
When is the auditor required to perform the Test of Controls (TOC)?
When is the auditor required to perform the Test of Controls (TOC)?
What is the purpose of the Substantive Testing phase?
What is the purpose of the Substantive Testing phase?
When is the auditor not required to perform any Test of Controls (TOC)?
When is the auditor not required to perform any Test of Controls (TOC)?
What does CR stand for in the context of control risk assessment?
What does CR stand for in the context of control risk assessment?
What is the purpose of the Test of Balances in Substantive Testing?
What is the purpose of the Test of Balances in Substantive Testing?
Which of the following is NOT a step in the audit planning process?
Which of the following is NOT a step in the audit planning process?
What is the purpose of the Test of Controls phase in an audit?
What is the purpose of the Test of Controls phase in an audit?
Which of the following is NOT a procedure in the Test of Control phase in an IT environment?
Which of the following is NOT a procedure in the Test of Control phase in an IT environment?
What is the maximum control risk?
What is the maximum control risk?
What is the purpose of the preliminary assessment of control risk?
What is the purpose of the preliminary assessment of control risk?
What is the purpose of the Test of Controls phase?
What is the purpose of the Test of Controls phase?
What is included in the audit planning process?
What is included in the audit planning process?
What is the purpose of the preliminary assessment of control risk?
What is the purpose of the preliminary assessment of control risk?
What is the purpose of the Test of Controls phase in an IT environment?
What is the purpose of the Test of Controls phase in an IT environment?
What is the maximum control risk?
What is the maximum control risk?
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