Question: How can an auditor use results from procedures performed during the control risk assessment phase to affect the nature of substantive testing?

How can an auditor use results from procedures performed during the control risk assessment phase to affect the nature of substantive testing?

Step by Step Solution

★★★★★

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

During the control risk assessment phase the auditor gathers evidence about the ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

787-B-A-A-P (1905).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

MULTIPLE-CHOICE QUESTIONS 1. Complex judgments are found in what types of accounts? a. Asset accounts. b. Liability accounts. c. Income statement accounts. d. All of the above. 2. Which of the...

Q:

How can an auditor introduce unpredictability into audit procedures?

Q:

How can an auditor find out whether payroll control procedures were followed by company personnel?

Q:

1/ Explain why an audit team cannot use the same combination of audit procedures for every audit. 2/ What does interim testing mean? Give some examples of substantive tests that can be done before...

Q:

1-Which of the following would be classified as a misstatement due to error or fraud? Select all that -apply. the auditor determines a probable loss from a pending lawsuit should be accrued for...

Q:

An audit strategy can take A. a reliance on procedures approach, a substantive app B. a reliance on controls approach, a subst C. neither a reliance on controls appr D. an approach whereby only...

Q:

1.During an audit of a private company's financial statements, an auditor should perform tests of controls to obtain sufficient appropriate audit evidence about the operating effectiveness of...

Q:

auditing TIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following is not one of the three primary objectives of effective internal...

Q:

PLEASE EXPLAIN 11. Which of the following is least likely entitled to the report of the service organization auditor on the suitability of the design and operating effectiveness of the service...

Q:

When auditors conclude that an internal control is effective, they will rely on the control to prevent and detect a material misstatement and reduce their detailed substantive procedures. Question 1...

Q:

According to Lave Cross, "Agency ratings indicate relative levels of risk instead of absolute levels of risk." Explain the meaning of Lave's statement.

Q:

Crazy Joe operates a canoe rental service on the Gualala River. He currently leases 15 canoes from a dealer in a nearby city at a cost of $ 10 per day. On weekends, when the water is high, he picks...

Q:

eBook One - year Treasury securities yield 4 . 3 5 % . The market anticipates that 1 year from now, 1 - year Treasury securities will yield 5 . 1 % . If the pure expectations theory is correct, what...

Q:

To what extent does the policy of increasing shareholder value conflict with other objectives the business might have?

Q:

If an auditor finds any misstatements or deviations in planned procedures: (a) The auditor should consider the reason for the misstatement or deviation. (b) The auditor should not revise the risk...

Q:

If an auditor finds any misstatements or deviations in planned procedures: (a) The auditor should consider the reason for the misstatement or deviation. (b) The auditor should not revise the risk...

Q:

The going concern assumption means: (a) The entity is facing difficulties continuing as a going concern. (b) The entity is viewed as continuing in business for the foreseeable future with no need for...

Q:

7. (4 points) You are participating in a draw with the probabilities given below. It's $1.50 to enter, with a 30% chance of getting your money back, and a 10% chance of getting your money back and...

Q:

can you show me how to do it and how tonset uo in thr financal calculater QUESTION 8 Sadik Inc.'s bonds currently sell for $1,330 and have a par value of $1,000. They pay a $105 annual coupon and...

Q:

Jane Smith wants to send her son Billy to college. Billy just turned 3 years-old today, September 1st, and should enter college on his 18th birthday. After doing some research, Jane finds out that...