Select the necessary words from the list of possibilities to complete the following statements. Statements Answer 1. The existence and accuracy of an account receivable may be tested by account to supporting documents. with the debtor, or by vouching entries in the 2. Tests of balances and transactions designed to detect material misstatements are called 3. The of SEC registrants selects the company's audit firm. are representations of management, explicit or otherwise, that are embodied in the financial statements as used by auditors 4. 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. 5. Performing certain audit procedures at an interim date, rather than at the balance sheet date, results in additional be controlled by the auditors. that must 6. procedures are used by auditors to determine that transactions are reflected in the proper accounting period. (2) control risk and (3) detection risk. 7. Audit risk at the account balance level consists of three components: (1). 8. The auditors must assess the risk of material misstatement of financial statements due to the two types of fraud, fraudulent financial reporting and