Question: 18. An auditor assesses control risk because it: (Points : 2) Determines whether sampling risk is sufficiently low. Affects the level of detection risk the

18. An auditor assesses control risk because it: (Points : 2) Determines whether sampling risk is sufficiently low. Affects the level of detection risk the auditor may accept. Includes the aspects of nonsampling risk that are controllable. Indicates where inherent risk may be the greatest. Question 19.19. Which of the following best describes the principal advantage of the use of flowcharts in reviewing internal control? (Points : 2) Flowcharting is the most efficient means available for summarizing internal control. Audit documents are not complete unless they include flowcharts, as well as memoranda, on internal control. Flowcharts aid in the understanding of the sequence and relationships of entity activities and documents. Standard flowcharts are available and can be used quite effectively for describing most company internal operations.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Accounting Questions!

help explain why these answers are correct in full detail 1 . in testing the existence assertion for an asset, an auditor ordinarily works from the - accounting records to the supporting evidence 2 ....

2. An auditor assesses control risk because it (2 Points) Is relevant to the auditor's understanding of the control environment. Provides assurance that the auditor's materiality levels are...

6 points Save Answ y. ors should be alert for potential judgment tendencies, traps, and biases that may impact the decision-making process. Discuss the Definition of the Common Judgment Tendencies...

Which of the following would be a consideration in planning an auditor's sample for a test of controls? Question 1 options: A) The auditor's allowable risk of assessing control risk is too high. B)...

Reviewing sales invoices and asking a sales manager to explain why a price deviation occurred is an example of which audit testing procedure(s): observation inquiry. inspection. Both b and c. 2. When...

Need help with these multiple choice questions for internal audit final exam. Due in 2 hours. QUESTION 1 RsQ_004Without management direction and assumption of responsibility, it would be...

ned to estimate a numerical measurement of a population, such as a dollar value? (Points : 2) Sampling for attributes. Discovery sampling. Numerical sampling. Sampling for variables. Question 2. 2....

2. 3. The GAAS examination standards relating to the audit of nancial statements, mandates each of the following requirements, except for a. b. c. (1. Plan and perform an audit to reduce audit risk...

4. For each of the following statements, indicate whether it is more closely related to attributes sampling or variables sampling by using the letter A (attributes) and V (variables). ___ 1. Used to...

Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A) Financial statement audits of today place more emphasis...

Determine the values of R and I, in the figure shown below. O 3A

Gold Leaf Ltd. began operations in 2011. The following presentation relates to the inventory valuations of the company at the end of the year using different inventory methods. There was no beginning...

The probability distribution of Dimond's returns is asfollows:State of NatureProbability 1 2 5 2 3 5 3 4 0 Rate of Return 9 % 1 1 % 7 % Calculate the standard deviation of the returns.

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

What kind of impression would you want to leave your audience with? What is the one thing youd like people to remember about you and your speech?

3 Are there some subjects or types of speeches that lend themselves to PowerPoint presentations? Are there others that dont?

Have you ever tried to sit through a speech when the speaker failed to use language the audience easily understood? Do you remember anything important from this speechor even its main point? How did...