1. Which of the following is least likely to be considered a risk assessment procedure in a financial statement audit?

a. Analytical procedures.

b. Inquiries of management.

c. Observation and inspection relating to client activities.

d. Tests of controls.

2. Which of the following is most likely to be included in an auditor’s inquiry of management while obtaining information to identify the risk of material misstatement due to fraud?

a. Are financial reporting operations controlled by and limited to one location?

b. Does it have knowledge of fraud or suspect fraud?

c. Has the possibility of management override been assessed?

d. Does the company have insurance against all forms of fraud?

Answer rating: 100% (QA)

1 Correct option is D Tests of contr... View the full answer