Business > EXAM > MGMT411 Chapter 9 Test Bank 2023 Questions and Answers {level A+} (All)

MGMT411 Chapter 9 Test Bank 2023 Questions and Answers {level A+}

Document Content and Description Below

Which of the following would not increase the risks of material misstatement at the overall financial statement level? - -effective oversight by the BOARD OF DIRECTORS -The auditor's responsibility... section in an audit report states that "...the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given? - -reasonable -________ risk represents the auditor's assessment of the susceptibility of an assertion to material misstatement, before considering the effectiveness of the client's internal controls. - -inherent -Risk of material misstatement at the assertion level - -determines the NATURE, TIMING, and EXTENT of further auditing procedures. -Assessing the risk of material misstatement is closely related to each of the following except - -not a CRTICAL consideration in most financial statement audits. -Name some examples where the auditor accepts some level of uncertainty in performing the audit function. - -• The inherent uncertainty about the appropriateness of evidence obtained. • The uncertainty about the effectiveness of a client's internal controls • Assessing risks is a matter of professional judgment rather than a precise measurement. -Risk assessment procedures include inquiries of management and others by the auditor. As part of these procedures, the auditor should talk to - -A) internal auditors. B) board of directors. C) individuals involved with regulatory compliance. (all of the above) -Risk assessment procedures include - -OBSERVATION of the entity's operations. -Risk assessment procedures are performed to identify and assess the risk of material misstatement. List three risk assessment procedures. - -1. Analytical procedures [Show More]

Last updated: 2 years ago

Preview 1 out of 7 pages

Buy Now

Instant download

We Accept: