If the auditor assesses control risk as high for a transaction-related audit objective, what does that imply

Question:

If the auditor assesses control risk as high for a transaction-related audit objective, what does that imply for detection risk and the level of substantive testing?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance services an integrated approach

ISBN: 978-0134065823

16th edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

See More Books

Question Posted: Sep 02, 2016 08:54 AM

See More Questions

For each of the following independent statements, state whether you agree or disagree with the statement and explain your answer. Required a. Overall audit risk is high when inherent risk is low. b....
Multiple Choice 1. An advantage of statistical sampling over non-statistical sampling is that statistical sampling helps an auditor to a. Eliminate the risk of non-sampling errors. b. Reduce audit...
Answer the following questions based on the information presented for Cloud 9 in Appendix B of this book and in the current and earlier chapters. You should also consider your answers to the case...
Using the data provided in BE19-21, determine the ending balance of the plan assets and indicate the funded status of the plan at the end of the year under U.S. GAAP. In BE19-21 Armando Hernandez...
The Taylor Mountain Uranium Company currently has annual cash revenues of $1.2 million and annual cash expenses of $700,000. Depreciation amounts to $200,000 per year. These figures are expected to...
Applebee's is the largest casual dining chain in the world, with over 1800 locations throughout the U. S. and also in 20 other countries. The menu features beef, chicken, and pork items, as well as...
Should a canoe paddle be made rough to get a "better grip on the water" for paddling purposes? Explain.
Chaz transfers cash of $60,000 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $15,000. The income is credited to its earnings and profits...
Managers have to be prepared to lead their organizations through varying economic conditions. Explain why it is important to understand GDP data, and how changes inunemployment and inflation impact...
1. What options do you think Jane and her management team should consider with regard to these two long-time supervisors? Discuss the positives and negatives of each option. 2. Do you think it is...
How does the auditor use information obtained from the control risk assessment and testing of controls to plan audit procedures?
Explain how control risk assessment differs for an integrated audit versus a financial statement-only audit.
Apple issued three debt issues of corporate bonds to borrow money to finance the building and operating of its new research lab. How much money did Apple raise collectively from its issue of...
How do monetary business sectors and foundations impact monetary dynamic for a situation study, and what are the essential capabilities they serve in working with the progression of assets and...
Consider the function f(x) = ln(1 + x) a) Obtain Taylor series of f(x) around x = 0. Write down the procedure in detail, not just the final outcome. b) Write a MATLAB user-defined function that...
In managing conflict in projects, it is prudent to identify the stakeholders and thereafter to analyse them. By referring to a project that you are familiar with, use an appropriate tool to analyse...
Recruitment for Big Data job profile project You are a team of systems engineers. Your management has asked you to prepare a report explaining how this Big Data stuff can benefit your company. To do...
For each basic block given below, rewrite it in single- assignment form, and then draw the data flow graph for that form. a) r = a+b-c; s=2*r; t=b-d; r=d+e; (b) w = a-b+c; x=w-d; y = x - z; w= a+b-c;...
A school is considering buying a large number of safety devices to install in the classrooms. The devices are designed to activate sprinklers if the temperature in the room exceeds 65C. A sample of...
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
What four types of procedures are used by auditors to test whether internal controls are operating effectively?
Why are the financial statement audit findings relevant to the auditors opinion on the effectiveness of internal controls over financial reporting?
Explain the difference in the requirements for reporting on the effectiveness of internal controls over financial reporting for integrated audits versus financial statementonly audits.
If you weigh your portfolio in 80% risky and 20% risk-free t bills. The optimal risky portfolio consists of 40% in bonds and 60% in ETFs. How much will you have invested in t-bills, bonds, and etfs?
b. A 25-year mortgage loan of $184,000 at a 10 percent compound annual interest rate with equal installment payments at the end of each year.
What are Cloud-based Services? How does this differ to the common virtualization model?

If the auditor assesses control risk as high for a transaction-related audit objective, what does that imply

Question:

Step by Step Answer:

If the auditor assesses control risk as high for a trans...View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these Auditing questions