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When there is any change in the Key management we need to reevaluate the control risk
When there is any change in Internal controls then there is a requirement of Re-Evaluation of control risk
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4. R14-5 Provide an example of why an auditor would reevaluate control risk near the end...
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work....
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the end of the audit. LO3 R14-6 Discuss actions an auditor would take when misstatements identified during the audit are...
R14-2 Differentiate between the two types of subsequent events. List some audit procedures that may identify subseq...
R14-2 Differentiate between the two types of subsequent events. List some audit procedures that may identify subsequent events? LO2 R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the...
The auditor concludes that the clients inherent risk is 40% and control risk is 60%. The...
The auditor concludes that the clients inherent risk is 40% and control risk is 60%. The auditor decides to test controls in order to be able to rely on controls. The auditor plans to conduct year-end substantive audit procedures in order to achieve a detection risk of 30%. What is the probability that that auditor will discover a material misstatement during the year-end substantive audit procedures? Answer = 1.68 [(.6 X .4) X 7] Why?????
The auditor deletes some necessary audit procedures. This is an example of Select one: a. Control...
The auditor deletes some necessary audit procedures. This is an example of Select one: a. Control risk (CR) O b. Inherent risk (IR) C Planned detection risk (PDR) Acceptable audit risk (AAR)
how does the auditor affect detection risk and consequently control audit risk?
how does the auditor affect detection risk and consequently control audit risk?
Select and provide an analysis of the Risk Control Practices and include why you would or...
Select and provide an analysis of the Risk Control Practices and include why you would or would not choose this Risk Control Practice for your organization.
1.To conclude that a management review control is effective, the auditor is required to identify a...
1.To conclude that a management review control is effective, the auditor is required to identify a selection of instances in which the control operated, evaluate whether management followed the procedures specified by the control, and properly evaluated and resolved exceptions. A) True B) False 2. Which of the following statements about substantive analytical procedures is correct? A) The results of the procedure provide evidence about the existence or absence of misstatement in an account. B) The results of the procedure...
Consider AICPA guidance. Why should an auditor perform risk assessment procedures? Also, what are three risk assessment...
Consider AICPA guidance. Why should an auditor perform risk assessment procedures? Also, what are three risk assessment procedures an auditor should undertake in order to assess an entity's risks of material misstatement in an audit? Consider AICPA guidance. Can analytical procedures be used as a form of substantive testing? Citing from the applicable AU-C, justify your response. Locate the PCAOB's audit standard on performing integrated audits. When an auditor is reporting on the results of an audit, must the auditor...
Control 2: If a company’s control risk is initially assessed as low, the auditor needs to...
Control 2: If a company’s control risk is initially assessed as low, the auditor needs to gather evidence on the operating effectiveness of the controls. For the following control activity listed, do the following two tasks: a. Describe the test of control that the auditor would use to determine the operating effectiveness of the control. b. Briefly describe how substantive tests of account balances should be modified if the auditor finds that the control is not working as planned. In...
If a company’s control risk is initially assessed as low, the auditor needs to gather evidence...
If a company’s control risk is initially assessed as low, the auditor needs to gather evidence on the operating effectiveness of the controls. For each of the following control activities listed as (1)–(10), do the following two tasks: a. Describe the test of control that the auditor would use to determine the operating effectiveness of the control. b. Briefly describe how substantive tests of account balances should be modified if the auditor finds that the control is not working as...
R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the end of the audit. LO3 R14-6 Discuss actions an auditor would take when misstatements identified during the audit are...
R14-2 Differentiate between the two types of subsequent events. List some audit procedures that may identify subsequent events? LO2 R14-3 Discuss the auditor's responsibility for detecting subsequent events prior to the completion of field work. LO2 R14-4 Explain the process of "engagement wrap-up?" Why is it important? LO3 R14-5 Provide an example of why an auditor would reevaluate control risk near the end of the audit. Provide a different example of why an auditor would reevaluate fraud risk near the...
The auditor deletes some necessary audit procedures. This is an example of Select one: a. Control risk (CR) O b. Inherent risk (IR) C Planned detection risk (PDR) Acceptable audit risk (AAR)
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