BYU Acc 406 Audit Final Exam || 100% Accurate Answers.
Client Acceptance/Continuance
Preliminary Audit Procedures
Plan the Audit
Consider and Audit Internal Controls
Audit Business Processes and Related Accounts
Complete the Audit
Evaluate Results and Issue the Audit Report correct answers Phases of an Audit
Assess Business Risks
Establish Materiality
Consider Multi-Locations
Assess the need for Specialists
Identify Related Parties
Consider Value-Added Services correct answers Steps in Planning the Audiit
Materiality correct answers The amount by which a set of financial statements could be misstated
without affecting the judgement of a reasonable person.
Tolerable Misstatement correct answers The amount of the overall materiality that is used to
establish a scope for the audit procedures for the individual account balance or disclosures.
AR = RMM x DR correct answers Audit Risk Model
Audit Risk correct answers The risk that the auditor expresses an inappropriate audit opinion
when the financial statements are materially misstated.
, Risk of Material Misstatement correct answers The pre-audit risk that the entity's financial
statements contain a material misstatement whether caused by error or fraud.
Inherent Risk correct answers the susceptibility of a set of accounts or transactions to significant
control problems in the absence of internal control
Control Risk correct answers The risk that a material misstatement that could occur in an account
will not be prevented or detected and corrected on a timely basis by internal control.
Detection Risk correct answers The risk that the procedures performed by the auditor to reduce
audit risk to an acceptably low level will not detect a misstatement that exists and that could be
material, either individually or when aggregated with others.
Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification
Presentation correct answers Management Assertions about classes of transactions and events
Occurrence correct answers transactions and events that have been recorded have occurred and
pertain to the entity
Completeness correct answers all transactions and events that should have been recorded have
been recorded
Authorization correct answers all transactions and events have been properly authorized
Client Acceptance/Continuance
Preliminary Audit Procedures
Plan the Audit
Consider and Audit Internal Controls
Audit Business Processes and Related Accounts
Complete the Audit
Evaluate Results and Issue the Audit Report correct answers Phases of an Audit
Assess Business Risks
Establish Materiality
Consider Multi-Locations
Assess the need for Specialists
Identify Related Parties
Consider Value-Added Services correct answers Steps in Planning the Audiit
Materiality correct answers The amount by which a set of financial statements could be misstated
without affecting the judgement of a reasonable person.
Tolerable Misstatement correct answers The amount of the overall materiality that is used to
establish a scope for the audit procedures for the individual account balance or disclosures.
AR = RMM x DR correct answers Audit Risk Model
Audit Risk correct answers The risk that the auditor expresses an inappropriate audit opinion
when the financial statements are materially misstated.
, Risk of Material Misstatement correct answers The pre-audit risk that the entity's financial
statements contain a material misstatement whether caused by error or fraud.
Inherent Risk correct answers the susceptibility of a set of accounts or transactions to significant
control problems in the absence of internal control
Control Risk correct answers The risk that a material misstatement that could occur in an account
will not be prevented or detected and corrected on a timely basis by internal control.
Detection Risk correct answers The risk that the procedures performed by the auditor to reduce
audit risk to an acceptably low level will not detect a misstatement that exists and that could be
material, either individually or when aggregated with others.
Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification
Presentation correct answers Management Assertions about classes of transactions and events
Occurrence correct answers transactions and events that have been recorded have occurred and
pertain to the entity
Completeness correct answers all transactions and events that should have been recorded have
been recorded
Authorization correct answers all transactions and events have been properly authorized
