An increased extent of tests of controls is most likely to occur when A it is a

An increased extent of tests of controls is most

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35) An increased extent of tests of controls is most likely to occur when: A) it is a first-year audit. B) the auditor is doing a "fraud audit." C) controls are effective and the preliminary control risk assessment is low. D) controls are ineffective and the preliminary control risk assessment is high. Answer: C
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Auditing and Assurance Services Chapter 13 Test bank 7 Mr.Ahmed Atef Khafaga 36) When an auditor believes that analytical procedures indicate a reasonable possibility of misstatement, the auditor usually would: Perform additional tests of controls Decide to modify tests of details of balances Yes Yes Perform additional tests of controls Decide to modify tests of details of balances No No Perform additional tests of controls Decide to modify tests of details of balances Yes No Perform additional tests of controls Decide to modify tests of details of balances No Yes 37) If the results of the tests of controls, substantive tests of transactions, and analytical procedures are not consistent with the predictions, tests of details of balances will be: 38) The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements? 39) The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily: A) parallel. B) inverse. C) direct. D) equal. Answer: B
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Auditing and Assurance Services Chapter 13 Test bank 8 Mr.Ahmed Atef Khafaga 40) A deficiency uncovered in the audit of internal control is explained by which of the following in relation to a financial statement misstatement? 41) Which of the following is not a valid basis for omitting an audit test in forming an opinion on the clients financial statements?
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  • Fall '16
  • taher refaat
  • Accounting, Atef Khafaga

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