ACC 409 Exam 2
Study online at https://quizlet.com/_jcsbl6
1. Which of the following approaches can be Performing procedures on an unan-
used to introduce unpredictability into the nounced basis
audit?
2. What is the auditor trying to accomplish by Introduce unpredictability
varying the timing of audit procedures from
the prior year?
3. When choosing not to rely on internal con- Test of controls
trols because the control design is ineffec-
tive, which tests are eliminated?
4. What type of relationship exists between au- Direct
dit risk and detection risk?
5. An increase in the risk of material misstate- Increase in the extent of audit procedures
ment would lead to which of the following
responses?
6. Ineffective internal controls result in higher True
risk of material misstatement than effective
internal controls
7. Internal controls that the auditor expects to True
rely on to reduce substantive testing must be
tested
8. Heightened risk of material misstatements True
causes the auditor to perform audit proce-
dures closer to year end.
9. Increases
, ACC 409 Exam 2
Study online at https://quizlet.com/_jcsbl6
As inherent risk increases, and other factors
remain constant, what happens to the extent
of work?
10. Which best describes the numerical depic- Audit risk model
tion of the relationship between control, in-
herent, detection, and audit risk?
11. Which of the following factors will result in There is a lack of supervision of account-
control risk being assessed at a higher level? ing personel
12. The risk of material misstatement refers to The combination of inherent risk and
which of the following? control risk
13. The lower the dollar amount of the perfor- True
mance materiality the more audit evidence is
required.
14. Consideration of internal control effective- True
ness is to determine nature, extent, & timing
of substantive testing.
15. A misstatement is an error, either intentional True
or unintentional, that exists in a transaction
or account balance.
16. Which of the following are two frequently Ratio analyses and trend analyses
used planning analytical procedures?
17. If materiality changes during the audit, what The auditor reassesses those previous
happens to previous decisions using the ini- decisions
tial materiality setting?
18. $15,000
Study online at https://quizlet.com/_jcsbl6
1. Which of the following approaches can be Performing procedures on an unan-
used to introduce unpredictability into the nounced basis
audit?
2. What is the auditor trying to accomplish by Introduce unpredictability
varying the timing of audit procedures from
the prior year?
3. When choosing not to rely on internal con- Test of controls
trols because the control design is ineffec-
tive, which tests are eliminated?
4. What type of relationship exists between au- Direct
dit risk and detection risk?
5. An increase in the risk of material misstate- Increase in the extent of audit procedures
ment would lead to which of the following
responses?
6. Ineffective internal controls result in higher True
risk of material misstatement than effective
internal controls
7. Internal controls that the auditor expects to True
rely on to reduce substantive testing must be
tested
8. Heightened risk of material misstatements True
causes the auditor to perform audit proce-
dures closer to year end.
9. Increases
, ACC 409 Exam 2
Study online at https://quizlet.com/_jcsbl6
As inherent risk increases, and other factors
remain constant, what happens to the extent
of work?
10. Which best describes the numerical depic- Audit risk model
tion of the relationship between control, in-
herent, detection, and audit risk?
11. Which of the following factors will result in There is a lack of supervision of account-
control risk being assessed at a higher level? ing personel
12. The risk of material misstatement refers to The combination of inherent risk and
which of the following? control risk
13. The lower the dollar amount of the perfor- True
mance materiality the more audit evidence is
required.
14. Consideration of internal control effective- True
ness is to determine nature, extent, & timing
of substantive testing.
15. A misstatement is an error, either intentional True
or unintentional, that exists in a transaction
or account balance.
16. Which of the following are two frequently Ratio analyses and trend analyses
used planning analytical procedures?
17. If materiality changes during the audit, what The auditor reassesses those previous
happens to previous decisions using the ini- decisions
tial materiality setting?
18. $15,000
