Overall responses

Responses to risk of material misstatements include:

• Financial statemet level risk
• Both
• Assertion Level Risk
• None

What are the components of an overall response to financial statement level risk, excluding one?

• Emphasis need to maintain professional skepticism
• Elements of predictablity in selection of initial audit procedure

• Make general or pervasive changes to nature,time or extent of audit procedure.
• Providing more supervision appropriate to circumstances.

What include the financial statement level risks that requires an overall response except one?

• Test of controls

• Professional skepticism

• Competence and capability

• Supervision

Auditor Response to assessed risk of material misatatements as per SA:

• SA 315
• SA 330
• SA 320
• SA 450

Inquiry alone is not sufficient to obtain audit evidence about operating effectiveness, in additions to inquiry, what are the other audit procedures required for obtaining audit evidence?

• Inspection of documents
• Reperformance of Controls
• Observations
• All of the Above

When auditor shall design & perform test of control to obtain sufficient appropriate audit evidence to operating effectiveness of relevant control:

• Auditor intends to rely on operating effectiveness of controls in determining the nature,timing & extent of substantive procedure.
• Substantive procedure can provide suficient appropriate audit evidence at assertion level
• Both
• None

When determining the appropriateness of using audit evidence regarding the operating effectiveness of controls from prior audits, what factors should the auditor consider?

• Risk arising from character of control,including whether it is manual or automated.
• Effectiveness of general IT Control
• Whether lack of changes in particular control poses a risk due to changing circumstances
• All of the Above

What actions the auditor does not need to undertake when obtaining audit evidence regarding the operating effectiveness of controls during the interim period?

• Otain Audit evidence about significant changes to those control subsequent to interim period.
• Determine the additional audit evidence for internal control to obtained for remaining period
• Obtain audit evidence for internal control again for whole period.
• Revise audit procedure accordingly.