Operating results that are highly sensitive to economic factors is considered to an inherent risk.

a. True

b. False

Scanning through the accounting records to look for unusual or large items is not generally considered to be a valid substantive procedure in an audit.

a. True

b. False

The detection risk in the audit varies directly in accordance with the risk of material misstatement.

a. True

b. False

Which of the following approaches to an audit is most likely to result in a detailed analysis of one or more characteristics of an entire population?

a. A horizontal analysis approach

b. a test design approach

c. a ratio analysis approach

d. a data analytical approach

Assertions with high inherent risk are least likely to involve:

a. difficult accounting issues

b. Significant judgement by management

c. Complex calculations

d. Routine transactions