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CPA AUD Flashcards > AUD 3 Internal Control 1 > Flashcards

AUD 3 Internal Control 1 Flashcards

1
Q

The Steps in an Audit

  1. Prepare for the audit
  2. Obtain Understanding of client,
    its Environment,
    including Internal Control
  3. Assess Risks of Material Misstatement and
    Determine Nature, Timing, and Extent
    of Further Procedures
  4. Perform Tests of Controls
  5. Perform Substantive Procedures
  6. Formulate an Opinion
  7. Issue Audit Report
A

The Steps in an Audit

  1. Prepare for the audit
  2. Obtain Understanding of client,
    its Environment,
    including Internal Control
  3. Assess Risks of Material Misstatement and
    Determine Nature, Timing, and Extent
    of Further Procedures
  4. Perform Tests of Controls
  5. Perform Substantive Procedures
  6. Formulate an Opinion
  7. Issue Audit Report
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2
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform r___ assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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3
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk ass_________t procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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4
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment pro_____es to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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5
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

re_____s the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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6
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the a_____ to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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7
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to a___ss risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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8
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess r___ of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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9
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of m______ misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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10
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material miss_______t (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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11
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (R__)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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12
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (_MM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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13
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (___)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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14
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at b___ the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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15
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the f_______ statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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16
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial s________t level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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17
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement le___ and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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18
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the ass____n level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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19
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion le___.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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20
Q

Internal Control

AU-C 315,
Un_______ing the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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21
Q

Internal Control

AU-C 315,
Understanding the E____y and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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22
Q

Internal Control

AU-C 315,
Understanding the Entity and Its En_________t
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)

at both the financial statement level and the assertion level.

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23
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of in______ control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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24
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to ob____ an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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25
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an u_________ing of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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26
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the e_____y to obtain an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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27
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal co____ relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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28
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the a____.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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29
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control re______ to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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30
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

re____es the entity to obtain an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the entity to obtain an understanding of internal control relevant to the audit.

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31
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Ass___ing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

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32
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of M_______ Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

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33
Q

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Miss________s,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

A

Internal Control

AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,

requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.

It also requires the entity to obtain an understanding of internal control relevant to the audit.

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34
Q

What is RMM?

A

RMM = Risks of Material Misstatements

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35
Q

RMM = R___s of Material Misstatements

A

RMM = Risks of Material Misstatements

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36
Q

RMM = Risks of M______ Misstatements

A

RMM = Risks of Material Misstatements

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37
Q

RMM = Risks of Material M__________s

A

RMM = Risks of Material Misstatements

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38
Q

Internal Control

The ob______ of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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39
Q

Internal Control

The objective of AU-C 315 is for the a_____ to identify and assess the risks of material misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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40
Q

Internal Control

The objective of AU-C 315 is for the auditor to id____y and assess the risks of material misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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41
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and a____s the risks of material misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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42
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the r___s of material misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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43
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of m_______ misstatement (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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44
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material miss_______t (RMM),

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

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45
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to f___d or error,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

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46
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or e___r,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

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47
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether d__ to fraud or error,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

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48
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

wh_____ due to fraud or error,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

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49
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the f________ statement
and relevant assertion levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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50
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial s_________
and relevant assertion levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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51
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

a_ the financial statement
and relevant assertion levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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52
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
a__ relevant assertion levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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53
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and re_______ assertion levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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54
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant ass______ levels

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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55
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion le___s

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

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56
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through un________ing the entity and its environment,
including the entity’s internal control,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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57
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the e____y and its environment,
including the entity’s internal control,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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58
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its e__________t,
including the entity’s internal control,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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59
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s i_______ control,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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60
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal co____l,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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61
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

thr_____ understanding the entity and its environment,
including the entity’s internal control,

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

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62
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for des___ing and implementing responses

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

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63
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and im_______ing responses

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

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64
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing res_____es

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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65
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a ba___ for designing and implementing responses

to the assessed risks of material misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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66
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby pr____ing a basis for designing and implementing responses

to the assessed risks of material misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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67
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the as____ed risks of material misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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68
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed r___s of material misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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69
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of m_______ misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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70
Q

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material mi__________t.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),

whether due to fraud or error,

at the financial statement
and relevant assertion levels

through understanding the entity and its environment,
including the entity’s internal control,

thereby providing a basis for designing and implementing responses

to the assessed risks of material misstatement.

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71
Q

Internal Control

The ob______ of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM), whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.

A

Internal Control

The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM), whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.

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72
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as noniss___s,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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73
Q

Internal Control

Au_____s of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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74
Q

Internal Control

Auditors of entities that do not report to the ___,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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75
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow G____,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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76
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are re____ed to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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77
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to fo____ GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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78
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (A__) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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79
Q

What is ASB?

A

ASB = Auditing Standards Board

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80
Q

ASB = A____ing Standards Board

A

ASB = Auditing Standards Board

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81
Q

ASB = Auditing S_______s Board

A

ASB = Auditing Standards Board

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82
Q

ASB = Auditing Standards B____

A

ASB = Auditing Standards Board

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83
Q

Internal Control

Auditors of entities that do not r____t to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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84
Q

Internal Control

Auditors of entities that do n__report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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85
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
is__ed by the Auditing Standards Board (ASB) of the AICPA.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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86
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the A____.

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers,

are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.

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87
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

ob___ and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

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88
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and d_______t an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

89
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an un________ing of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

90
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the c____’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

91
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s i_______ controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

92
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal c_______s

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

93
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to as__ss the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

94
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the r___ of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

95
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of m_______ misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

96
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material miss________ (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

97
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (R__) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

98
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of i________ risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

99
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent r___ (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

100
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and c______ risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

101
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control r___ (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

102
Q

IR = I________ Risk

A

IR = Inherent Risk

103
Q

IR = Inherent R___

A

IR = Inherent Risk

104
Q

CR = C______ Risk

A

CR = Control Risk

105
Q

CR = Control R___

A

CR = Control Risk

106
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which co_____s of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

107
Q

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards re____e the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

A

Internal Control

Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements,

which consists of inherent risk (IR) and control risk (CR).

108
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the R__ to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

109
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to de________ the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

110
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which de_______ risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

111
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection r___ (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

112
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to r_____ audit risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

113
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce a____ risk (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

114
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit r___ (AR) to an acceptable level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

115
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acc______ level.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

116
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable l____.

A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.

These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

117
Q

DR = D_________ Risk

A

DR = Detection Risk

118
Q

DR = Detection R___

A

DR = Detection Risk

119
Q

AR = A____ Risk

A

AR = Audit Risk

120
Q

AR = Audit R___

A

AR = Audit Risk

121
Q

Internal Control

• When an a_____ believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

122
Q

Internal Control

• When an auditor believes that the n_____, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

123
Q

Internal Control

• When an auditor believes that the nature, t__ing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

124
Q

Internal Control

• When an auditor believes that the nature, timing, or e____t of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

125
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of sub_______ testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

126
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive t___ing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

127
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be l____ed as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

128
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of eff_____ internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

129
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective i_______ control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

130
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal c______,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

131
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the a______ must perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

132
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must pe_____ tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

133
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor m___ perform tests of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

134
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform t___s of controls to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

135
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of c______s to verify that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

136
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to v____y that they are operating effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

137
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are op____ting effectively as designed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

138
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as des___ed and intended.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

139
Q

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and in____ed.

A

Internal Control

• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,

the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.

140
Q

Internal Control

• The auditor draws a con______n,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

141
Q

Internal Control

• The a_____ draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

142
Q

Internal Control

• The auditor draws a conclusion,
based on t___s of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

143
Q

Internal Control

• The auditor draws a conclusion,
based on tests of c______s,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

144
Q

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the c______s can be relied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

145
Q

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be r__ied upon
for the entire period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

146
Q

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the ent___ period for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

147
Q

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire pe____ for which controls were tested.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

148
Q

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were t___ed.

A

Internal Control

• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.

149
Q

Internal Control

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

  • When an a_____ believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
  • The a______ draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
A

Internal Control

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

  • When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
  • The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
150
Q

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.

The auditor then uses the R__ to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

  • When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
  • The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
A

Internal Control

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.

The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.

  • When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
  • The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
151
Q

Auditors of entities that do not re____ to the SEC, often referred to as nonissuers, are required to follow GAAS.

A

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.

152
Q

Which organization issued GAAS?

A

GAAS, issued by the Auditing Standards Board (ASB) of the AICPA

153
Q

What GAAS required auditors of nonissuers to do?

A

These (GAAS) standards require the auditors to

obtain and document an understanding of the client’s internal controls

in order to assess the risk of material misstatement (RMM) of the financial statements

154
Q

Auditors of entities that do not report to the SEC are required to follow _____

A

Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS

155
Q

ASB = A______ Standards Board

A

ASB = Auditing Standards Board

156
Q

ASB = Auditing S________ Board

A

ASB = Auditing Standards Board

157
Q

ASB = Auditing Standards B_____

A

ASB = Auditing Standards Board

158
Q

Auditors of nonissuers are required to follow _____.

A

Auditors of nonissuers are required to follow GAAS.

159
Q

Auditors of non_______s are required to follow GAAS.

A

Auditors of nonissuers are required to follow GAAS.

160
Q

Auditors of nonissuers are re____ed to follow GAAS.

A

Auditors of nonissuers are required to follow GAAS.

161
Q

Internal Control

A______s of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

162
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as i______s,

are also required to obtain an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

163
Q

Internal Control

Auditors of entities that do report to the ___, often referred to as issuers,

are also required to obtain an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

164
Q

Internal Control

Auditors of entities that do re____ to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

165
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to ob____ an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

166
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an un_______ing of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

167
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of in______ control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

168
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal co_____.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

169
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also re____ed to obtain an understanding of internal control.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers,

are also required to obtain an understanding of internal control.

170
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

ob____ and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

171
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and do_______ the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

172
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the un_______ing in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

173
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to ass___ the risk of material misstatement of the financial statements and to plan and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

174
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to p___ and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

175
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and per____ the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

176
Q

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the au___.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to

obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

177
Q

Internal Control

Auditors of e____ies that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

178
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires a______ of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

179
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated a____ of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

180
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial re____ing and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

181
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial st________s.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

182
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of b___ internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

183
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley re____es auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

184
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of is__ers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

185
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to per____an integrated audit of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

186
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an int_____ed audit of both internal control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

187
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both in______ control over financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

188
Q

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control ov__ financial reporting and of the financial statements.

A

Internal Control

Auditors of issuers:

Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

189
Q

Internal Control

Auditors of issuers:

In addition to ob____ing sufficient evidence to support the auditor’s control risk assessment,

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

190
Q

Internal Control

Auditors of issuers:

In addition to obtaining su______t evidence to support the auditor’s control risk assessment,

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

191
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evi_____ to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

192
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to sup____ the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

193
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control r____ assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

194
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk ass_______t,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

195
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the a______’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

196
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s co_____ risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

197
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the au_____ is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

198
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to ob____ sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

199
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain su______t evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

200
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evi_____ to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

201
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to sup____ an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

202
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is re____ed to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

203
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opi____ on internal control over financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

204
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control o___ financial reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

205
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over f________ reporting (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

206
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial re____ing (ICFR)

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

207
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a sp_____c point in time, the date of the financial statements.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

208
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in t___, the date of the financial statements.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

209
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the d___ of the financial statements.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

210
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial st_______s.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

211
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (IC__)

as of a specific point in time, the date of the financial statements.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

212
Q

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (_____)

as of a specific point in time, the date of the financial statements.

A

Internal Control

Auditors of issuers:

In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,

the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)

as of a specific point in time, the date of the financial statements.

213
Q

What is ICFR?

A

ICFR = Internal Control over Financial Reporting

214
Q

ICFR = I_______ Control over Financial Reporting

A

ICFR = Internal Control over Financial Reporting

215
Q

ICFR = Internal C_____ over Financial Reporting

A

ICFR = Internal Control over Financial Reporting

216
Q

ICFR = Internal Control over F______ Reporting

A

ICFR = Internal Control over Financial Reporting

217
Q

ICFR = Internal Control over Financial R_______

A

ICFR = Internal Control over Financial Reporting

218
Q

Internal Control

Auditors of entities that do report to the S__, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

As a result, in addition to obtaining sufficient evidence to support the auditor’s control risk assessment, the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR) as of a specific point in time, the date of the financial statements.

A

Internal Control

Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.

Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.

Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.

As a result, in addition to obtaining sufficient evidence to support the auditor’s control risk assessment, the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR) as of a specific point in time, the date of the financial statements.

CPA AUD Flashcards (62 decks)

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