elect the necessary words from the list of possibilities to complete the following statements. Statements 1. procedures are used by auditors to determine that transactions are reflected in the proper accounting period. The auditors must assess the risk of material misstatement of financial statements due to the two types of fraud, fraudulent financial reporting and 3. The of SEC registrants selects the company's audit firm. 4. The existence and accuracy of an account receivable may be tested by to supporting documents. with the debtor, or by vouching entries in the account 5. Audit risk at the account balance level consists of three components: (1). (2) control risk and (3) detection risk. are representations of management, explicit or otherwise, that are embodied in the financial statements as used by auditors 6. to consider the different types of potential misstatements that may occur. that are communicated, explicitly or implicitly by the financial that are set forth in the financial statements. 7. Audit procedures that are focused on the effectiveness of internal control are called 8. Tests of balances and transactions designed to detect material misstatements are called Answer