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b.As lower acceptable levels of both audit risk and materiality are established, the auditor should plan more work on individual accounts to(1)find smaller misstatements.X(2)find larger misstatements.(3)increase the tolerable misstatement in the accounts.(4)increase materiality in the accounts.c.Based on evidence gathered and evaluated, an auditor decides to increase the assessed level of control risk from that originally planned. To achieve an overall audit risk level that is substantially the same as the planned audit risk level, the auditor couldMULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS3
Lisa MaugansAcct 555 Week 4 HomeworkJanuary 24, 201610-30 (Objectives 10-1, 10-2, 10-7)The following are general questions about internal control. Choose the best response.a.When considering internal control, an auditor must be aware of the concept of reasonable assurance, which recognizes that theb.Actions, policies, and procedures that reflect the overall attitude of management, directors and owners of the entity about internal control relate to which of the following internal control components?c.Vendor account reconciliations are performed by three clerks in the accounts payable department on Friday of each week. The accounts payable supervisor reviews the completed reconciliations the following Monday to ensure they have been completed. The work performed by the supervisor is an example of which COSO component?X(1)Control activities(2)Information and communication(3)Risk assessment(4)Monitoring