Question
Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the auditor to verify manual controls within the software application
Question:
Question 183
Processing auditor test data using the client's software application _______.
-will allow the auditor to verify manual controls within the software application are functioning as designed
-may corrupt the client's system, and should not be attempted
-will allow the auditor to verify that the software application is functioning as designed
-should be performed without the knowledge of the client's senior management
Question 19
The tolerable deviation rate _______.
-relates to how many immaterial misstatements the auditor finds
-refers to the extent that audit fees can go over the roughly agreed amount
-is the minimum rate of deviation from a prescribed control that an auditor is willing to accept and still use the planned assessed level of control risk
-is the maximum rate of deviation from a prescribed control that an auditor is willing to accept and still use the planned assessed level of control risk
Question 20
Which of the following refers to a sampling technique used to reach a conclusion about a population in terms of a rate (frequency) of occurrence?
-Benchmarking
-Attribute sampling
-Tests of control
-Control exception
Question 21
If tests of controls indicate that a key control is not functioning as designed, and if other compensating controls do not exist, the auditor should _______.
-All of these answer choices are correct.
-increase the assessed level of control risk
-make appropriate changes to the nature, timing and extent of substantive tests related to the assertion
-decrease the level of assessed detection risk
Question 223 pts
An IT application control will be ineffective _______.
-if it lists an appropriate transaction on an exception report
-if it is consistently used
-if the entity is hacked or experiences some form of phishing
-if it fails to put an invalid transaction on an exception report
Question 23
If the test results do not confirm the preliminary evaluation of controls, _______.
-the auditor should obtain additional written assurances from management
-the auditor should consider withdrawing from the engagement
-the auditor will consider whether there is a compensating control that might detect and correct a misstatement missed by the original control being tested
-the auditor will consider whether there is a compensating control that might prevent and correct a misstatement missed by the original control being tested
Question 24
Working paper documentation for test of controls should include _______.
-all client-owned documents which will be returned to the client once audit fees are paid
-the auditors' opinion of absolute assurance about control risk, and the basis for their conclusion (e.g., underlying evidence)
-the auditors' conclusion about control risk, and the basis for their conclusion (e.g., underlying evidence)
-comments on this year's audit by the prior auditor
Question 25
If the assessed risk of material misstatement for an assertion is high, auditors need to gather more persuasive audit evidence.
Group of answer choices
True
False
Question 263 pts
An audit strategy can take _______.
-a reliance on controls approach, a substantive approach, or a combination of both
-neither a reliance on controls approach, nor a substantive approach
-an approach whereby only internal control is audited
-a reliance on procedures approach, a substantive approach, or a combination of both
Question 27
After auditors have completed testing controls and drawn a conclusion about control risk, _______.
-they should withdraw if control risk is assessed as high
-they are ready to issue the audit opinion
-they make decisions about the nature, timing, and extent of substantive testing
-they make decisions about the nature and timing of substantive testing
Question 283 pts
An auditor mailing positive confirmations is an example of _______.
-a substantive procedure
-a compilation engagement
-a review engagement
-a test of internal control
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