q1. Which one of the following statements about control risk are false?

A.Control risk can be reduced by auditors by increasing the number of sampled transactions for detailed testing.

B.It is the risk of a material misstatement in the financial statements arising due to error or omission as a result of factors other than the failure of internal control.

C.Control risk is considered to be high where organizations do not have adequate internal controls in place to prevent and detect instances of fraud and error.

D.The auditor can indirectly influence the level of control risk of a client in future periods.

q2. Complete statement: When detection risk is set at low, then

A.the auditor is acknowledging that the client is low risk and therefore less substantive testing is required.

B.the auditor is willing to accept a higher risk of not detecting material misstatements, and will reduce the reliance on substantive testing.

C.the auditor acknowledges that the client is high risk and therefore is not willing to accept a higher risk of not detecting material misstatements.

D.audit risk is set as medium.

q3. Which of the following statements regarding the quantity of evidence that an auditor will collect are true?

A.It is firmly established at the commencement of the audit.

B.It is dependent on the level of detection risk.

C.It may vary with the level of assessed control risk.

D.It is proportional to the size of the audit client.

q4.