Fill in the missing words 1. Misstatements in the financial statements can arise from either or The distinguishing factor between fraud and error is whether the underlying action that results in the misstatement of the financial statements is or 2. Two types of intentional misstatements are relevant to the auditor - misstatements resulting from financial reporting and misstatements resulting from of assets. 3. The primary responsibility for the prevention and detection of fraud rests with both of the entity and that the financial statements taken as a whole are free from 4. An auditor conducting an audit in accordance with ISAs is responsible for obtaining , whether caused by fraud or error. 5. When obtaining reasonable assurance, the auditor is responsible for maintaining throughout the audit, considering the potential for management of controls and recognizing the fact that audit procedures that are effective for detecting may not be effective in detecting 6. The objectives of the auditor are: (a) To and the risks of material misstatement of the financial statements due to fraud; (b) To obtain audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses, and (c) To appropriately to fraud or suspected fraud identified during the audit. 7. For purposes of the ISAs, the following terms have the meanings attributed below: (a) Fraud - An act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage. (b) Fraud risk factors - Events or conditions that indicate an or to commit fraud or provide an to commit fraud. Fill in the missing words 1. The risk of material misstatement at the financial statement level refers to risks that relate to the financial statements as a whole and potentially affect many , and 2. Auditing standards require the auditor to assess the risk of material misstatement at the level for classes of and in order to determine the and of further audit procedures. 3. The risk of material misstatement at the assertion level consists of two components: risk and risk 4. 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. For example, inherent risk may be higher for the valuation assertion related to those accounts that require complex calculations or accounting estimates that involve significant estimation judgment. 5. risk represents the auditor's assessment of the risk that a material misstatement could occur in an assertion and not be prevented or detected on a timely basis by the client's internal controls. For example, control risk may be higher for the valuation assertion of those accounts mentioned if the client's internal control procedures fail to include independent review and verification of the complex calculations or the significant estimates developed. 6. Inherent risk and control risk are the 's risks and they exist of the audit of the financial statements. Check