WorksheetsAuditting 1 - The risk based approach to audit : Audit judgement
Total questions: 8
Worksheet time: 4mins
The correct formula to calculate Audit Risk are...
AR X IR X CL
DC X IR X CL
IR X CR X DR
IR X CL X DR
Confidence level is higher when
Detection Risk high
Detection Risk low
Detection Level high
Detection Level low
The risk accepting a client that is not genuine and is engaged in fraudulent activities is known as.....
Engagement risk
Acceptance risk
Client risk
Unlegitimate risk
.......... is the risk that a misstatement that could occur in an assertion and that could be material will not be prevented or detected and corrected on a timely basis by the entity's internal controls.
Inherent risk
Detection risk
Control risk
Audit risk
Engagement team consist of
A. Engagement partner, managers firm, responsible party, intended user
Assitant auditor, senior, responsible party, managers
Engagement partner, senior, managers, assitant auditors
Assistant auditors, managers , senior, responsible party
Auditors must get information as much as possible in what step?
Study of business
Preparation of audit planning memorandum
Preparation of time and fee budgets
A,B,C correct
The use of management direction over accounting choices, earnings reporting choices, and real economic decisions in one or more measures of earnings. This is a definition of earning management by.......
Walker (2013)
Healy and wahlen (1999)
The impact of business risk to audit process, except...
More efficient and profitable
Reduce the audit's firms own 'business risk'
The potential for giving assurance to management
Inhibit auditor to contribute to corporate governance
