Audit Risk

What should the auditor carefully consider

• Audit Risk
• Control Risk
• Detection Risk
• Inherent Risk

As lower acceptable levels of AR and materiality are established, auditors should plan more work on individual accounts

• to increase the tolerable misstatements in the accounts.
• to find larger errors
• to find smaller errors
• to decrease the risk of overreliance

Risk assessment procedures include

• Five steps
• Determination of the type of audit opinion to issue
• Observation of the entity's operations
• Assessing acceptable audit risk

Auditors are allowed to make inquires of employees who are considered management, not marketing or sales personnel. 

• True
• False

A management assertion having ability of containing material misstatement without regard to the effect of internal controls is 

• risky assertion
• significant assertion
• relevant assertion
• material assertion

The auditor's risk assessment for fraud should be ongoing throughout the audit.

• True
• False

The risk of material misstatement exists only at the overall financial statement level.

• True
• False

According to professional auditing standards, which of the following is NOT a type of audit risk?

• Inherent
• Fraud
• Detection
• Control

“Audit client is a listed company” classified as?

• IR
• CR
• DR
• None of above