When the auditor has assessed the level of control risk at less than high the

When the auditor has assessed the level of control

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39. When the auditor has assessed the level of control risk at less than high, the auditor should document: A. the understanding of the entity's internal control elements obtained to plan the audit. B. the conclusion and the basis for that conclusion. C. the implications for the overall audit strategy. D. All of the given answers are correct. 40. Procedures directed towards obtaining evidence concerning the effectiveness of the design or operation of an internal control policy or procedure are referred to as: A. analytical procedures. B. substantive tests. C. tests of controls. D. confirmations. 41. The auditor observes client employees in obtaining an understanding of the internal control in order to:
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42. The following are steps in the audit process: I. prepare flowchart. II. gather exhibits of all documents. III. interview personnel. The most logical sequence of steps is:
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43. The auditor's understanding of the client's internal control is documented to substantiate: accounting records with the accounting standards. adherence to requirements of management. auditing standards.
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financial report presentation. 44. After the auditor has prepared a flowchartof the accounting system and control procedures surrounding sales, and assessed the design of the system, the auditor would perform tests of controls for all control procedures: A. documented in the flowchart.
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B. considered to be C. considered to be D. that would aid in deficiencies that might allow errors to enter the accounting system. strengths that the auditor plans to use as a basis for an assessed level of control risk less than high. preventing irregularities. 45. Which of the following internal controlfeatures would an
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auditor be least likely to review? asset-handling and record-keeping functions. regarding credit and collection efforts. sales and cost records by products. additions to plant and equipment.
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