inappropriate during the risk assessment procedure of the audit engagement?
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Choose the one correct answer. Which of the following would be inappropriate during the risk assessment procedure of the audit engagement? *
oral inquiries
reperformance
review of the accounting manual
preparation of internal control flowchart
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Solved in 2 steps
- Which of the following would be inappropriate during the risk assessment procedure of the audit engagement? *oral inquiriesreperformancereview of the accounting manualpreparation of internal control flowchartGenerally, which of the following audit procedures is the least expensive to perform? A. Analytical procedures B. Tests of details of balance C. Substantive tests of transactions D. Tests of controls E. Risk assessment procedureGenerally, which of the following audit procedures is the least expensive to perform? A. Analytical procedures B. Tests of details of balance C. Substantive tests of transactions D. Tests of controls E. Risk assessment procedures
- Which of the following would be inappropriate during the risk assessment procedure of the audit engagement? *oral inquiriesreperformancereview of the accounting manualpreparation of internal control flowchart Which of the following audit approaches is most likely to provide an auditor the most confidence in an internal control procedure's effectiveness? *performing analytical proceduresinspection of supporting documentsinquiry of the client's management and personnelconducting a tour on client's premisesWhich is not a Risk Assessment Procedure? a. Ratio Analysis b. Observation of Activities c. Account Receivable confirmations d. Inspection of Documents e. Inquiry of Internal AuditorsWhich of the following is least likely to be a continuous activity that an auditor would be expected to perform throughout an audit engagement? OA. Understanding the entity and its environment OB. Assessing the risk of material misstatement OC. Considering client continuance OD. Inquiring as to the design of controls
- Place the auditor's activities to assess control risk in the proper order: Group of answer choices Walkthrough, flowchart, tests of controls Flowchart, significant deficiency, audit committee Flowchart, walkthrough, tests of controls Walkthrough, narrative, tests of controlsfinancial statement audit is a matter of debate. Someargue that the existence of a DRP is irrelevant to theaudit. Others argue that it is an important controlthat needs to be considered in the assessment ofinternal control.RequiredAddress both sides of this debate.a. Provide a logical argument why a DRP shouldnot be considered in the audit.b. Argue why a DRP is an important control andshould be reviewed within the conduct of a financialaudit.Which of the following is NOT a task performed in the audit planning phase? a. reviewing an organization’s policies and practicesb. determining the degree of reliance on controls c. reviewing general controls d. planning substantive testing procedures
- In applying a top-down, risk-based approach to an audit, should the auditor start with the ending account balances or does the auditor start with the significant processes that lead to a material account balances? Is one approach preferred over the other? Explain. In what ways does the practice of internal auditing differ from the practice of public accounting? To whom is the internal auditing function responsible?Must all observations identified by an internal audit team during an assurance engagement be acted upon by management? Explain. What are the implications for the internal audit function if management fails to respond appropriately to an observation warranting corrective action?Assessment of audit risk is carried out by the auditor at this stage of the audit process:a. Audit planningb. Understanding and testing the design and operation of internal control structuresc. Performing substantive testsd. Issuance of audited financial statementse. All wrong