Week 3: Quiz Saved Help Save & Exit Select the necessary words from the list of possibilities to complete the following statements. 1 Statements Answer 1. The amount of evidence that is considered sufficient varies with the reliability of the evidence. 2. The risk of material misstatement is composed of two risks that the auditor assesses, those risks are inherent risk and risk adjusting entries analytical procedures 3. The purpose of an analysis of an account to illustrate in the account for the period under audit. changes confirmation reply 4. The term relates to the quantity of evidence that the auditors should obtain. control 5. In relying upon the work of a specialist, the auditors must ascertain the specialist. and reputation of the 6. The audit approach of evaluating financial statement information by a study of relationships among financial and nonfinancial data is 7. The examination of large data sets to uncover hidden patterns, unknown correlations and other useful information is referred to as Separate 8. working trial balance. are used to combine similar general ledger accounts into the total that appears on the Select the necessary words from the list of possibilities to complete the following statements. 2 Statements Answer 1 with the debtor, or by vouching entries in the The authenticity and accuracy of an account receivable may be tested by account to supporting documents. 2. The of SEC registrants selects the company's audit firm. 3. misappropriation of assets representations of management risk Tests of balances and transactions designed to detect material misstatements are called that must 4 Performing certain audit procedures at an interim date, rather than at the balance sheet date, results in additional be controlled by the auditors. substantive procedures (tests) tests of controls The auditors must assess the risk of material misstatement of financial statements due to the two types of fraud, fraudulent financial reporting and 6. The term refers to the process of determining that transactions are reflected in the proper accounting period. 7. Audit procedures that are focused on the effectiveness of internal control are called 8 Assertions are that are set forth in the financial statements