Question: In planning an audit, the auditors knowledge about the design of relevant internal control activities should be used to A. Identify the types of potential

In planning an audit, the auditor’s knowledge about the design of relevant internal control activities should be used to


A. Identify the types of potential misstatements that could occur.

B. Assess the operational efficiency of internal control.

C. Determine whether controls have been circumvented by collusion.

D. Document the assessed level of control risk.

Step by Step Solution

★★★★★

3.43 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provided below Explanation During the planning phase a... 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

Students Have Also Explored These Related Accounting Questions!

Q:

The method of integration by parts should be used to determine COS X 5+ sin x dx.

Q:

The information below should be used to prepare (in proper form in Excel) a Public Transportation column for the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position for...

Q:

The following information and assumptions should be used to complete the Cost-Benefit Analysis: Annual revenues from the mill average 750 million. Profit margin from the mill is approximately 12%....

Q:

When planning an audit, the auditors knowledge about the design of relevant internal controls should be used to (A) Assess the efficiency of internal controls over operations. (B) Identify the types...

Q:

4. In planning an audit, the auditors knowledge about the design of relevant controls should be used to a. Identify the types of potential misstatements that could occur. b. Assess the operational...

Q:

1. As part of understanding internal control, an auditor is not required to a. Consider factors that affect the risk of material misstatement. b. Ascertain whether internal control policies and...

Q:

The following questions deal with examining inter nal controls or assessing control risk. Choose the best response. a. The ultimate purpose of assessing control risk is to con tribute to the...

Q:

Multiple Choice: 1. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessors a. Awareness of the consistency in...

Q:

Assume an auditor's interim consideration of internal control in the expenditure/ disbursement cycle reveals that control risk can be assessed below the maximum and detection risk above the minimum...

Q:

Miller Retailing, Inc., maintains a staff of three full-time internal auditors who report directly to the controller. In planning to use the internal auditors to help in performing the audit, the...

Q:

In preparing the financial statements for the year ended 31 December 20X5 Alpha plc discovers the following, all of which are material in the context of the company's results: Development...

Q:

Cost of Merchandise Sold Cost of merchandise sold: Merchandise inventory, May 31, 2018 $105,000 Cost of merchandise purchased: Purchases $1,110,000 Purchases returns and allowances 55,000 Purchases...

Q:

Virtual teams face challenges: Group of answer choices identifying objectives collaborating on projects choosing team leaders building trust and camaraderie

Q:

A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are expected to produce a return of 10%, mortgages 8.5%, car loans 9.5%, and...

Q:

Bearland Manufacturing produces 4 different types of wood paneling. Each type of paneling is made by gluing and pressing together a different mixture of pine and oak chips. The following table...

Q:

The following condensed income statement and reconciliation schedule are from the annual report of Alpha Biotech, Inc. (in millions): Sales $203 Expenses 169 Net income $ 34 Reconciliation...

Q:

For each of the following indicate the amount of revenue that Beanville should recognize in its 2017 (1) government-wide statements and (2) governmental fund statements. Provide a brief justification...

Q:

Eastern Supply uses the allowance method in accounting for uncollectible accounts with the estimate based on the aging-of-accounts-receivable method. The company had the following account balances on...

Q:

The normal distribution is asymptotic in the sense that _____________ Multiple choice question. as the tails get closer and closer to the horizontal axis, they eventually touch this axis. the tails...

Q:

This assignment is expected to take you the following time: Internet research ? 3 hours Industry analysis ? 2 hours Completing the checklist ? 1hour Preliminary analysis ? 2 hours You are being asked...

Q:

This assignment is expected to take you the following time: Internet research ? 3 hours Industry analysis ? 2 hours Completing the checklist ? 1hour Preliminary analysis ? 2 hours You are being asked...

Q:

Assignment 2: Audit Planning andControl DueWeek 8 and worth 280 points It is common industryknowledge that an audit plan provides the specific guidelines auditors mustfollow when conducting an...

Q:

Case Study 2 - Auditing ACCT3000 (Semester 1.2020) You are an Audit Senior currently planning the 30 June 20x9 audits of Comp Limited (Comp), Health Limited (Health) and News Limited (News). At...

Q:

Lemoco Co (Lemoco) manufactures fizzy drinks such as cola and lemonade as well as other soft drinks and its year-end is 31 December 20XX. You are the audit manager of Diet & Co and are currently...

Q:

Hi can u pls help me to find out the auditing MCQ questions answer .I attach a file.please.My email id is (ruhin_1986@yahoo.com) 1 Marks: 1 When an auditor calculates the gross margin as a percent of...