TBSACO0002 Planning

You have been assigned to the audit of Huskie Company. The company was previously audited by another CPA firm. The audit team is currently focused on pre-engagement acceptance and other planning issues.

Match the phrases below with the most closely corresponding terms associated with planning activities by selecting from the associated cell. Each source may be used once, more than once, or not at all.

1. The auditor does not identify a material misstatement that exists in an assertion.

Fraud risk

Inherent risk

Control risk

Detection risk

Engagement letter

Audit program

Planning-stage materiality

Misappropriation of assets

2. The nature, timing, and extent of planned substantive audit procedures for each audit area.

Fraud risk

Inherent risk

Control risk

Detection risk

Engagement letter

Audit program

Planning-stage materiality

Misappropriation of assets

3. The relative size of financial statement misstatements that the auditor's planned substantive audit procedures is designed to detect.

Fraud risk

Inherent risk

Control risk

Detection risk

Engagement letter

Audit program

Planning-stage materiality

Misappropriation of assets

4. The susceptibility of an assertion to a material misstatement, assuming that there are no related controls.

Fraud risk

Inherent risk

Control risk

Detection risk

Engagement letter

Audit program

Planning-stage materiality

Misappropriation of assets

5. A material misstatement of the financial statements caused by the theft of cash receipts concealed by false entries in the accounting records.

Fraud risk

Inherent risk

Control risk

Detection risk

Engagement letter

Audit program

Planning-stage materiality

Misappropriation of assets