Podcast
Questions and Answers
Which risk can be increased or decreased by the auditor?
Which risk can be increased or decreased by the auditor?
- Control Risk
- Audit Risk
- Inherent Risk
- Detection Risk (correct)
Which risk can only be controlled by the auditor?
Which risk can only be controlled by the auditor?
- Audit Risk
- Inherent Risk
- Detection Risk
- Control Risk (correct)
What is the equation for Detection Risk?
What is the equation for Detection Risk?
- DR = IR / (AR x CR)
- DR = AR / (CR x IR)
- DR = CR / (AR x IR)
- DR = AR / (IR x CR) (correct)
What are the ways to decrease Detection Risk?
What are the ways to decrease Detection Risk?
What are the ways to increase Detection Risk?
What are the ways to increase Detection Risk?
When is the 'audit around the computer' approach used?
When is the 'audit around the computer' approach used?
What are some commonly used Computer-Assisted Audit Techniques (CAATs)?
What are some commonly used Computer-Assisted Audit Techniques (CAATs)?
Which of the following factors affects the timing of substantive testing (ST)?
Which of the following factors affects the timing of substantive testing (ST)?
What do tests of controls (TOC) provide evidence about?
What do tests of controls (TOC) provide evidence about?
What is the relationship between substantive testing (ST) and tests of controls (TOC)?
What is the relationship between substantive testing (ST) and tests of controls (TOC)?
What is the purpose of general controls in a computer information system (CIS) environment?
What is the purpose of general controls in a computer information system (CIS) environment?
What are application controls in a CIS environment?
What are application controls in a CIS environment?
What is the purpose of control totals in application controls?
What is the purpose of control totals in application controls?
What should an auditor consider in terms of CIS skills and competence?
What should an auditor consider in terms of CIS skills and competence?
Which of the following is a key factor in planning an audit and developing an effective audit approach?
Which of the following is a key factor in planning an audit and developing an effective audit approach?
When the CIS is significant, what should auditors also obtain an understanding of?
When the CIS is significant, what should auditors also obtain an understanding of?
What is the potential use of Clients CIS in an audit?
What is the potential use of Clients CIS in an audit?
What is the significance of obtaining understanding of the organizational structure of the client's CIS activities?
What is the significance of obtaining understanding of the organizational structure of the client's CIS activities?
What is the role of the availability of data source in the audit?
What is the role of the availability of data source in the audit?
What is the potential of Clients CIS in increasing efficiency in audit procedures?
What is the potential of Clients CIS in increasing efficiency in audit procedures?
When should auditors obtain an understanding of the CIS environment?
When should auditors obtain an understanding of the CIS environment?
What is the importance of understanding the significance and complexity of the CIS activities?
What is the importance of understanding the significance and complexity of the CIS activities?
What is the role of the availability of data for use in the audit?
What is the role of the availability of data for use in the audit?
Which type of audit risk refers to the risk that a material misstatement could occur in a financial statement assertion and not be prevented or detected by the client's internal controls?
Which type of audit risk refers to the risk that a material misstatement could occur in a financial statement assertion and not be prevented or detected by the client's internal controls?
What is the formula for Desired Audit Risk (DAR)?
What is the formula for Desired Audit Risk (DAR)?
What is the definition of Inherent Risk?
What is the definition of Inherent Risk?
What is the definition of Control Risk?
What is the definition of Control Risk?
What is the definition of Detection Risk?
What is the definition of Detection Risk?
What is the formula for Audit Risk?
What is the formula for Audit Risk?
What is the relationship between the desired level of audit risk and the design of substantive procedures?
What is the relationship between the desired level of audit risk and the design of substantive procedures?