Which of the following would be an appropriate response if an auditor assessed control risk at the maximum level?

• A. Perform more tests of controls.
• B. Perform substantive tests closer to the fiscal-year end.
• C. Decrease the assessed inherent risk.
• D. Perform fewer substantive tests of details.

Which of the below is a required procedure to assess the potential for material misstatements due to fraud?

• A. Hold brainstorming sessions in the planning stage of the audit
• B. Discuss with management their knowledge of unintentional misstatements by employees
• C. Use trend analysis to assess the risk of material misstatement in revenues
• D. Discuss ongoing fraud investigations with regulatory agents

Which of the following is true about the discussion amongst the engagement team to identify risk of material misstatements?

• A.

  It must be held spearately from discussions concerning fraud risk.

• B.

  The first meeting should normally occur after fieldwork begins.

• C.

  The discussions allow the engagement team members to exchange information about the business risks to which the entity is subject.

• D.

  The client's management is required to be involved in these discussions.