Auditing and Assurance Services a Systematic
Approach 10th Edition Ch 4-7 Exam Questions
and Answers
Save
Terms in this set (55)
Evaluations of financial information made through
Analytical procedures analysis of plausible relationships among both
financial and nonfinancial data.
Specific acts performed by the auditor in gathering
Audit procedures evidence to determine if specific assertions are being
met.
The risk that the auditor expresses an inappropriate
Audit risk audit opinion when the financial statements are
materially misstated.
Risks resulting from significant conditions, events,
circumstances, and actions or inactions that could
Business risks adversely affect management's ability to execute its
strategies and to achieve its objectives, or through the
setting of inappropriate objectives or strategies.
The risk that a misstatement that could occur in an
assertion about an account or disclosure and that
could be material, either individually or when
Control risk
aggregated with other misstatements, will not be
prevented, or detected and corrected, on a timely
basis by the entity's internal control.
, The risk that the procedures performed by the auditor
will not detect a misstatement that exists and that
Detection risk
could be material, either individually or when
aggregated with other misstatements.
The risk that the auditor is exposed to financial loss or
damage to his or her professional reputation from
Engagement risk litigation, adverse publicity, or other events arising in
con- nection with financial statements audited and
reported on.
Unintentional misstatements or omissions of amounts
Errors
or disclosures.
These are misstatements about which there is no
doubt. For example, an auditor may test a sales
invoice and determine that the prices applied to the
Factual misstatements products ordered are incorrect. Once the products
are correctly priced, the amount of misstatement is
known. In such cases, the auditor knows the exact
amount of the misstatement.
An intentional act by one or more among
management, those charged with governance,
Fraud employees, or third parties, involving the use of
deception that results in a misstatement in the
financial statements.
The susceptibility of an assertion in an account or
disclosure to a misstatement due to error or fraud that
Inherent risk could be material, either individually or when
aggregated with other misstatements, before
consideration of any related controls.
These are misstatements that arise from the judgments
of management concerning accounting estimates that
Judgmental misstatements the auditor considers unreasonable or the selection
or application of accounting policies that the auditor
considers inappropriate.
Approach 10th Edition Ch 4-7 Exam Questions
and Answers
Save
Terms in this set (55)
Evaluations of financial information made through
Analytical procedures analysis of plausible relationships among both
financial and nonfinancial data.
Specific acts performed by the auditor in gathering
Audit procedures evidence to determine if specific assertions are being
met.
The risk that the auditor expresses an inappropriate
Audit risk audit opinion when the financial statements are
materially misstated.
Risks resulting from significant conditions, events,
circumstances, and actions or inactions that could
Business risks adversely affect management's ability to execute its
strategies and to achieve its objectives, or through the
setting of inappropriate objectives or strategies.
The risk that a misstatement that could occur in an
assertion about an account or disclosure and that
could be material, either individually or when
Control risk
aggregated with other misstatements, will not be
prevented, or detected and corrected, on a timely
basis by the entity's internal control.
, The risk that the procedures performed by the auditor
will not detect a misstatement that exists and that
Detection risk
could be material, either individually or when
aggregated with other misstatements.
The risk that the auditor is exposed to financial loss or
damage to his or her professional reputation from
Engagement risk litigation, adverse publicity, or other events arising in
con- nection with financial statements audited and
reported on.
Unintentional misstatements or omissions of amounts
Errors
or disclosures.
These are misstatements about which there is no
doubt. For example, an auditor may test a sales
invoice and determine that the prices applied to the
Factual misstatements products ordered are incorrect. Once the products
are correctly priced, the amount of misstatement is
known. In such cases, the auditor knows the exact
amount of the misstatement.
An intentional act by one or more among
management, those charged with governance,
Fraud employees, or third parties, involving the use of
deception that results in a misstatement in the
financial statements.
The susceptibility of an assertion in an account or
disclosure to a misstatement due to error or fraud that
Inherent risk could be material, either individually or when
aggregated with other misstatements, before
consideration of any related controls.
These are misstatements that arise from the judgments
of management concerning accounting estimates that
Judgmental misstatements the auditor considers unreasonable or the selection
or application of accounting policies that the auditor
considers inappropriate.
