The risk of material misstatement is composed of which audit risk components? a. Inherent risk and control
Question:
a. Inherent risk and control risk.
b. Control risk and detection risk.
c. Inherent risk and detection risk.
d. Inherent risk, control risk, and detection risk.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
a Correct The risk of material misstatement is composed of inherent risk a...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Question Posted:
Students also viewed these Auditing questions
-
The Townson Manufacturing Company has gathered the following information for the month of September: 9,000 units in the beginning Work-in-Process Inventory (90% complete as to materials, 1/3 complete...
-
Designing substantive procedures responds to: (a) The risk of material misstatement at the entity level. (b) The risk of material misstatement at the assertion level. (c) The risk of all types of...
-
Brown, CPA, is evaluating the risk of material misstatement (RMM) on an engagement. For each of the following, identify the risk component most directly affected matching the risk component from the...
-
Happy Hands Company has net profit margin 5.51%, total assets turnover 0.63, and equity multiplier 2.77. What is its return on shareholder equity (ROE) using DuPont analysis method
-
For a normal distribution where the mean is 50 and the standard deviation is 10, what percentage of the area is a. between the scores of 40 and 47?________ b. above a score of 47? ________ c. below a...
-
Once it has been started by sufficient suction, the siphon in Fig. P3.169 will run continuously as long as reservoir fluid is available. Using Bernoullis equation with no losses, show (a) that the...
-
What is the purpose of financial statements? Would you want to produce them even if they were not required, say, for entity tax reporting?
-
Doorway Diffraction Sound of frequency 1250Hz leaves a room through a 1.0 D-m-wide doorway (see Exercise 36.5). At which angles relative to the centerline perpendicular to the doorway will someone...
-
Bonita Industries sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $100 and a...
-
Refer to the AccuTax, Inc., example in the chapter. One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual...
-
The likelihood that material misstatements may have entered the accounting system and not been detected and corrected by the clients internal control is referred to as a. Inherent risk. b. Control...
-
The risk that the auditors own testing procedures will lead to the decision that material misstatements do not exist in the financial statements when in fact such misstatements do exist is a. Audit...
-
a. What type of adversary are most hackers today? 12a.) What type of attacker are most attackers today? a. Disgruntled employees and ex-employees b. Career criminals c. Hackers motivated by a sense...
-
How is the PV of Cap Ex. for Yrs 1 and 2 calculate in excel? Is it NPV("risk free rate", Yrs1:Yrs2)+(1.0)? Rates: Discount rate Risk-free rate 9.0% 4.5% Scenario No Real Options Start Cash from...
-
HOW TO ENTER THESE AMOUNTS AND WHERE IN NAVIPLAN Shared Assumptions Marital Status Income Tax Method Inflation Rate Elect to Split Pension Income Estate Assumptions Detail Is there a will? Last...
-
Post the results in the respective ledgers. Prepare a trial balance Please carefully read the following transactions and answer the questions given at the end of the questions. ANSWER ALL THE...
-
2. Michelle receives an inflation-adjusted Social Security check at the end of every year for 25 years. If the first check is for $1,000 and the inflation factor used is 5% (i.e. each payment is 5%...
-
Francine is a photographer. For years, her business has consisted of joining guided backcountry hiking and skiing tours and providing photographs for the tour clients. However, this business has...
-
Simplify each expression. 5(x 1) +2(4x + 4) -
-
Decades after the event, Johnson & Johnson (J&J), the 130-year-old American multinational, is still praised for swiftly The company indicated that its response was based on the expectations set forth...
-
If the disk in Figure 5.16 rotates in the clockwise direction by \(10^{\circ}\), determine the elastic potential energy of the system. Assume that the springs are originally undeformed. FIGURE 5.16...
-
Before a company can begin trading on an exchange, it must meet certain initial requirements. The exchanges set their own standards for initial listing, which include minimum thresholds for the...
-
Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash receipts, and the tests of details of cash balances. Discuss.
-
Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Give one...
-
ABC had the following income statement for the period ending on December 31, 2020. Income Statement for the year ended 31/12/2020 Net Sales 120,000 Cost of Goods Sold 80,000 Gross Profit 40,000...
-
SERIE MONTO NOMINAL UNIDAD DE TASA DE PLAZO FINAL REAJUSTE DEL INTERSCUPN COLOCADO BONO VIGENTE A $100.000.000 Dlares 5,5% 01-01-2028 B $55.000.000 Dlares 3,4% 01-04-2032 C $45.000.000 Dlares 5,5%...
-
Cullumber Company's balance sheet at December 31, 2026 reports assets of $1068000 and liabilities of $737000. All of Cullumber's assets' book values approximate their fair value, except for land,...
Study smarter with the SolutionInn App