PRINCIPLES OF AUDITING AND OTHER ASSURANCE SERVICES COMPREHENSIVE REVIEW 2026

PRINCIPLES OF AUDITING AND OTHER
ASSURANCE SERVICES COMPREHENSIVE
REVIEW 2026

◉ The components of the risk of misstatement are:
Inherent Control Risk Detection
A) Yes Yes Yes
B)Yes Yes No
C)Yes No No
D)No Yes Yes
A. Option A
B. Option B
C. Option C
D. Option D Answer: B. Option B


◉ 13. Financial statement assertions are established for classes of
transactions,
Acct Balances Disclosures
A) Yes Yes
B) Yes No
C) No Yes

,D) No No
A. Option A
B. Option B
C. Option C
D. Option D Answer: A. Option A


◉ 14. Which of the following is correct concerning a "fraud risk
factor"?
A. It may affect the auditor's assessment of fraud risk.
B. It requires modification of planned audit procedures.
C. It is also a material weakness in internal control.
D. If it involves senior management, it is likely to result in
resignation of the auditor. Answer: A. It may affect the auditor's
assessment of fraud risk.


◉ 15. When performing a financial statement audit, auditors are
required to explicitly assess the risk of material misstatement due
to:
A. Fraud.
B. Misappropriation.
C. Illegal Acts.
D. Business risk. Answer: A. Fraud.

, ◉ 16. As planning materiality is decreased, the auditor should plan
more work on individual accounts to.
A. Find smaller misstatements.
B. Find larger misstatements.
C. Increase the tolerable misstatement in the accounts.
D. Decrease the risk of assessing control risk too low. Answer: A.
Find smaller misstatements.


◉ 17. Further audit procedures include:
Risk Asesmt Proced /Controls Test
A) Yes/Yes
B) Yes/No
C) No/Yes
D) No/No
A. Option A
B. Option B
C. Option C
D. Option D Answer: C. Option C


◉ 18. Assertions that have a meaningful bearing on whether an
account balance, transaction class or disclosure is fairly stated are
referred to as:
A. Appropriate assertions.