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AUD 3 Internal Control 10 - 1 Flashcards

1
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

An auditor performs the following procedures to obtain and apply an understanding of internal control to an audit:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Step 2 – Document the understanding of Internal Control.

Step 3 – Assess Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and control risk (CR).
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o (RELY?)
Perform tests of control (TofC) to determine if CR is below maximum, reducing RMM below the level of IR and allowing for the modification of the nature, timing, and extent of further audit procedures (sub tests): or
o (NOT Rely)
Decide NOT to perform tests of controls, assessing CR at the maximum level as if the control did not exist, and measuring RMM as being equal to IR.

Step 5 – Reassess Risk of Material Misstatement and evaluate results.
o For controls for which tests of controls were performed, evaluate results to reassess RMM and determine if it is appropriate to modify the nature, timing, and extent of further audit procedures.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures. At this point, the audit program needs to be developed or revised for further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

An auditor performs the following procedures to obtain and apply an understanding of internal control to an audit:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Step 2 – Document the understanding of Internal Control.

Step 3 – Assess Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and control risk (CR).
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o (RELY?)
Perform tests of control (TofC) to determine if CR is below maximum, reducing RMM below the level of IR and allowing for the modification of the nature, timing, and extent of further audit procedures (sub tests): or
o (NOT Rely)
Decide NOT to perform tests of controls, assessing CR at the maximum level as if the control did not exist, and measuring RMM as being equal to IR.

Step 5 – Reassess Risk of Material Misstatement and evaluate results.
o For controls for which tests of controls were performed, evaluate results to reassess RMM and determine if it is appropriate to modify the nature, timing, and extent of further audit procedures.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures. At this point, the audit program needs to be developed or revised for further audit procedures.

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2
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

(what is the form?)
Have the controls been IMPLEMENTED (put into use?).

To evaluate the implementation of a control means to determine whether a control is actually being used by the entity.

The auditor first considers the design of the control. If the control is improperly designed, it may represent a material weakness in the entity’s internal control.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

(what is the form?)
Have the controls been IMPLEMENTED (put into use?).

To evaluate the implementation of a control means to determine whether a control is actually being used by the entity.

The auditor first considers the design of the control. If the control is improperly designed, it may represent a material weakness in the entity’s internal control.

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3
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

An auditor obtains an understanding of the entity and its environment, including its internal control (CRIME) through the performance of risk assessment procedures.

These are procedures designed to provide the auditor with an adequate understanding to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

An auditor obtains an understanding of the entity and its environment, including its internal control (CRIME) through the performance of risk assessment procedures.

These are procedures designed to provide the auditor with an adequate understanding to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

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4
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

  • Analytical procedures (Using high level data)
  • Inquiries of management and others within the entity, including inquiries of internal auditors.
  • Inspection (of documents and records)
  • Observation (the application of specific controls)
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

  • Analytical procedures (Using high level data)
  • Inquiries of management and others within the entity, including inquiries of internal auditors.
  • Inspection (of documents and records)
  • Observation (the application of specific controls)
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5
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the inf_________ that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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6
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an au____ obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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7
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal con____s will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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8
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will in______y be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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9
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the re____ of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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10
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of in_____ies made of the entity’s management and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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11
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s m_________ and others who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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12
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and o____s who the auditor believes can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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13
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor be_____s can provide relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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14
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide re______ information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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15
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can pro____ relevant information.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

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16
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing au____, much information will be derived from reviewing prior period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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17
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much inf________ will be derived from reviewing prior period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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18
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be de___ed from reviewing prior period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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19
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from re____ing prior period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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20
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing pr___ period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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21
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a con____ing auditor, much information will be derived from reviewing prior period engagement files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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22
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period eng_______ files.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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23
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement f___s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

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24
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When ob____ing an understanding of controls that are relevant to the audit,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

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25
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an und_______ing of controls that are relevant to the audit,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

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26
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of con____s that are relevant to the audit,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

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27
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are re______ to the audit,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

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28
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may n__ rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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29
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not r___ exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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30
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exc_____ly on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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31
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on in_____ies to evaluate the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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32
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to eva_____ the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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33
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the de____ of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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34
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to det______ whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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35
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been imp________ed.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

When obtaining an understanding of controls that are relevant to the audit,

however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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36
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the De____ of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

When obtaining an understanding of controls that are relevant to the audit, however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Most of the information that an auditor obtains about an entity’s internal controls will initially be the result of inquiries made of the entity’s management and others who the auditor believes can provide relevant information.

If the auditor is a continuing auditor, much information will be derived from reviewing prior period engagement files.

When obtaining an understanding of controls that are relevant to the audit, however, the auditor may not rely exclusively on inquiries to evaluate the design of those controls and to determine whether they have been implemented.

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37
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially eva_____ the design of the control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

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38
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the de____ of the control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

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39
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inq___ies,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

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40
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information de___ed from inquiries,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

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41
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to det______ whether it has the potential of reducing RMM.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of reducing RMM.

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42
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the pot______ of reducing RMM.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of reducing RMM.

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43
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of re___ing RMM.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of reducing RMM.

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44
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of reducing R__.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control,

usually based on information derived from inquiries,

to determine whether it has the potential of reducing RMM.

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45
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The au_____ will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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46
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is n__ relevant to the audit and no determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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47
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not re______ to the audit and no determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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48
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no det________ will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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49
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been imp________ed.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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50
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and n_ determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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51
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If n__, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

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52
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is not reducing RMM,
the control is not relevant to the audit
and no determination will be made as to whether it has been implemented.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is not reducing RMM,
the control is not relevant to the audit
and no determination will be made as to whether it has been implemented.

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53
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can det_______ if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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54
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been impl_______ed
and if it is operating as it was designed only by performing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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55
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is op______ing as it was designed only by performing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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56
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was de____ed only by performing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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57
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by per____ing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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58
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a w___ through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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59
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk thr____h.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

If the control is reducing RMM,

the auditor can determine if the control has been implemented
and if it is operating as it was designed only by performing a walk through.

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60
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM

If the control is NOT ____ing RMM,
the control is NOT relevant to the audit and no determination will be made as to whether it has been implemented.

If the control is re___ing RMM,
the auditor can determine if the control has been IMPLEMENTED and if it is operating as it was designed only by performing a walk through.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM

If the control is NOT reducing RMM,
the control is NOT relevant to the audit and no determination will be made as to whether it has been implemented.

If the control is reducing RMM,
the auditor can determine if the control has been IMPLEMENTED and if it is operating as it was designed only by performing a walk through.

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61
Q

Walk Through -

This involves ap___ing some means other than inquiry,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry,

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62
Q

Walk Through -

This involves applying some means other than in____y,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry,

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63
Q

Walk Through -
This involves applying some means other than inquiry, such as

ob_____ng the control being applied,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,

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64
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being ap__ied,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,

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65
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the con____being applied,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,

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66
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
per____ing analytical procedures

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures

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67
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing ana______ procedures

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,

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68
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical pro______s to determine if the control is producing the appropriate results,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,

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69
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to de_______ if the control is producing the appropriate results,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,

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70
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the app_______ results,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,

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71
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate re____s,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,

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72
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the ins_______ of documents

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents

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73
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other i___s that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide evidence that the control is in place.

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74
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide ev________ that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide evidence that the control is in place.

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75
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will pro_____ evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide evidence that the control is in place.

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76
Q

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide evidence that the control is in p____.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Walk Through -
This involves applying some means other than inquiry, such as

observing the control being applied,
performing analytical procedures to determine if the control is producing the appropriate results,
or the inspection of documents or other items that will provide evidence that the control is in place.

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77
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially eva_____ the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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78
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from in_____ies, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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79
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no det________ will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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80
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been imp_______ed and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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81
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some m____s other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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82
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as obs___ing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor will initially evaluate the design of the control, usually based on information derived from inquiries, to determine whether it has the potential of reducing RMM.

If not, the control is not relevant to the audit and no determination will be made as to whether it has been implemented.

If so, however, the auditor can determine if the control has been implemented and if it is operating as it was designed only by performing a walk through.

This involves applying some means other than inquiry, such as observing the control being applied, performing analytical procedures to determine if the control is producing the appropriate results, or the inspection of documents or other items that will provide evidence that the control is in place.

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83
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a w___ through provides information about the design and implementation of a control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

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84
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk thr_____ provides information about the design and implementation of a control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

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85
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the de____ and implementation of a control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

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86
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and impl_______ of a control,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

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87
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a co____,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

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88
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is n__ sufficient to determine if the control was operating effectively throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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89
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not suf______t to determine if the control was operating effectively throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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90
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to det_______ if the control was operating effectively throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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91
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the con____ was operating effectively throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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92
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was op____ing effectively throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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93
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating ef______ly throughout the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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94
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively thr_____out the period being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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95
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the pe____ being audited

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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96
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being a____ed

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

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97
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to r__y on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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98
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a b____ for modifying the nature, timing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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99
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for m____ying the nature, timing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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100
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the na____, timing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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101
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further a____ procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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102
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit pro_____es.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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103
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, t__ing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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104
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and ex____ of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control,

it is not sufficient to determine if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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105
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through pro____s information about the design and implementation of a control, it is not sufficient to determine if the control was operating effectively throughout the period being audited or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• While performing a walk through provides information about the design and implementation of a control, it is not sufficient to determine if the control was operating effectively throughout the period being audited or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

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106
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the au_____ intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

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107
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor in____s to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

How well did you know this?
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108
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to r___ on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

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109
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the con____ as a basis for modifying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

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110
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a b____ for modifying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

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111
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for m____ying the nature, timing, and extent of further audit procedures,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

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112
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the au_____is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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113
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is re____ed to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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114
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to det_______ if the control was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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115
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the con____ was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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116
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was op_____ting effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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117
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating ef_______ly throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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118
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively thr______out the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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119
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected pe____ through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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120
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the perf_______ of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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121
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of t___s of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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122
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit pro_____es, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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123
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the na____, timing, and extent of further audit procedures, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

• If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.

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124
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures
  • While performing a walk through provides inf_______ about the design and implementation of a control, it is not sufficient to determine if the control was operating effectively throughout the period being audited or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.
  • If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures
  • While performing a walk through provides information about the design and implementation of a control, it is not sufficient to determine if the control was operating effectively throughout the period being audited or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.
  • If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures, the auditor is required to determine if the control was operating effectively throughout the affected period through the performance of tests of controls.
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125
Q

Walk through involves applying some means other than inquiry, such as:

ob____ing the control being applied,

per____ing analytical procedures to determine if the control is producing the appropriate results,

or the ins________ of documents or other items that will provide evidence that the control is in place.

A

Walk through involves applying some means other than inquiry, such as

observing the control being applied,

performing analytical procedures to determine if the control is producing the appropriate results,

or the inspection of documents or other items that will provide evidence that the control is in place.

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126
Q

What is ‘walk through’?

A

Walk through involves applying some means other than inquiry, such as

observing the control being applied,

performing analytical procedures to determine if the control is producing the appropriate results,

or the inspection of documents or other items that will provide evidence that the control is in place.

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127
Q

Walk through involves applying some means other than inquiry, such as:

  • observing the control
  • performing analytical procedures
  • the inspection of documents
A

Walk through involves applying some means other than inquiry, such as

observing the control being applied,

performing analytical procedures to determine if the control is producing the appropriate results,

or the inspection of documents or other items that will provide evidence that the control is in place.

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128
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an und______ing of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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129
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal co______l, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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130
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control def______ies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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131
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, we_______es in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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132
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in int______ control that might allow errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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133
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow er___s to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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134
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to oc___ without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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135
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might al___ errors to occur without the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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136
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur with___ the ability to identify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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137
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to id___ify and correct them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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138
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and cor____ them on a timely basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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139
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a t___ly basis.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

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140
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified def_______ies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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141
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Id_____fied deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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142
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be eva____ed to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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143
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to det_______ if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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144
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are si________t deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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145
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or ma_____ weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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146
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant def______ies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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147
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material we________es, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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148
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be com________ed to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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149
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which m___ be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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150
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, b___ of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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151
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to m_________ and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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152
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with gov________.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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153
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of ob____ing an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

In the course of obtaining an understanding of internal control, the auditor may identify control deficiencies, weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

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154
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The au____ makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

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155
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a det________ as to which procedures to apply when obtaining different aspects of the understanding.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

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156
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different as____s of the understanding.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

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157
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which pro_____es to apply when obtaining different aspects of the understanding.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

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158
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the und_______ing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

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159
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not a__ procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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160
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all pro_______s will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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161
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will a___y to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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162
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those sp____ied may also prove helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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163
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also pr___ helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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164
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove help___ to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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165
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in id_____ying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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166
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying r___s of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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167
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor m___s a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

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168
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

N__ all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

These other procedures may include re____ing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

169
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These ot___ procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

170
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing infor______ from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

171
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from ex______ sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

172
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making in_____ies of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

173
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties out____ the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

174
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the co________ of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

175
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the e____y.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

176
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor makes a determination as to which procedures to apply when obtaining different aspects of the understanding.

Not all procedures will apply to each aspect and procedures other than those specified may also prove helpful to the auditor in identifying risks of material misstatement.

These other procedures may include reviewing information from external sources, or making inquiries of parties outside the entity but with the cooperation of the entity.

177
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowl_____ obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
178
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is u__d to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
179
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Id_____y the types of potential misstatements
(Errors or Fraud).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

180
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the t___s of potential misstatements
(Errors or Fraud).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

181
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of pot______ misstatements
(Errors or Fraud).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

182
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential miss________s
(Errors or Fraud).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

183
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Er___s or Fraud).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

184
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fr___).

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

185
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Con_____ factors that affect the risk of material misstatements.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
186
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider fa____s that affect the risk of material misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the risk of material misstatements.

187
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that af____ the risk of material misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the risk of material misstatements.

188
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the r___ of material misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the risk of material misstatements.

189
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the risk of ma______ misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Consider factors that affect the risk of material misstatements.

190
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • De____ tests of controls and substantive procedures.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
191
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design t___s of controls and substantive procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

192
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of con____s and substantive procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

193
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and subst_____ procedures.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

194
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive proc_____res.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

195
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of ob\_\_\_\_ing an understanding of internal control sufficient to plan the audit,
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit,
196
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an un\_\_\_\_\_\_\_ing of internal control sufficient to plan the audit,
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit,
197
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control suf\_\_\_\_\_\_\_ to plan the audit,
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit,
198
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to p\_\_\_ the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
199
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the au\_\_\_,
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit,
200
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should eva\_\_\_\_\_\_ whether the client’s programs and controls
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls
201
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s pro\_\_\_\_s and controls
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls
202
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and co\_\_\_\_\_s that address the identified risks of material misstatement due to fraud
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud
203
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that ad\_\_\_\_\_\_ the identified risks of material misstatement due to fraud
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud
204
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the id\_\_\_\_ied risks of material misstatement due to fraud 
       have been suitably designed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
205
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified r\_\_\_s of material misstatement due to fraud
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud
206
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of ma\_\_\_\_\_ misstatement due to fraud
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud
207
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fr\_\_\_ 
       have been suitably designed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
208
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been su\_\_\_\_ly designed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
209
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably de\_\_\_\_ed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
210
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and imp\_\_\_\_\_\_\_ed.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

     o As part of obtaining an understanding of internal control sufficient to plan the audit, 
      the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud 
       have been suitably designed and implemented.
211
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• De____ tests of controls and substantive procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.
212
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

      o Det\_\_\_\_\_\_\_ if these have been Implemented (Placed into operation).
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

      o Determine if these have been Implemented (Placed into operation).
213
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Imp\_\_\_\_\_\_ed (Placed into operation).
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).
214
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Pl\_\_\_d into operation).
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).
215
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into ope\_\_\_\_\_).
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).
216
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Und\_\_\_\_\_\_\_ing doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating effectiveness.
217
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't req\_\_\_\_ evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating effectiveness.
218
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require eva\_\_\_\_ing their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating effectiveness.
219
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their op\_\_\_\_\_ing effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating effectiveness.
220
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating eff\_\_\_\_\_\_\_\_ss.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o Determine if these have been Implemented (Placed into operation).

         ▪ Understanding doesn't require evaluating their operating effectiveness.
221
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and subs________ procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

      o Determine if these have been Implemented (Placed into operation).
         ▪ Understanding doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Design tests of controls and substantive procedures.

      o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

      o Determine if these have been Implemented (Placed into operation).
         ▪ Understanding doesn't require evaluating their operating effectiveness.
222
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The kn________ obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
223
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk ass________ procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
224
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Id______y the types of potential misstatements (Errors or Fraud).
  • Con_____ factors that affect the risk of material misstatements.
  • De____ tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
225
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of ob\_\_\_\_ing an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Det\_\_\_\_\_ if these have been Implemented (Placed into operation).
       ▪ Und\_\_\_\_\_\_ing doesn't require evaluating their operating effectiveness.
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

  • Identify the types of potential misstatements (Errors or Fraud).
  • Consider factors that affect the risk of material misstatements.
  • Design tests of controls and substantive procedures.
        o As part of obtaining an understanding of internal control sufficient to plan the audit, the auditor should evaluate whether the client’s programs and controls that address the identified risks of material misstatement due to fraud have been suitably designed and implemented.

    o Determine if these have been Implemented (Placed into operation).
       ▪ Understanding doesn't require evaluating their operating effectiveness.
226
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

• Consider factors that affect the risk of material misstatements.

• Design tests of controls and substantive procedures.
o The auditor should evaluate whether the client’s programs and controls have been suitably designed and implemented.
o Determine if these have been Implemented

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –

  1. Understand the Design of CRIME by performing Risk Assessment Procedures

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).

• Consider factors that affect the risk of material misstatements.

• Design tests of controls and substantive procedures.
o The auditor should evaluate whether the client’s programs and controls have been suitably designed and implemented.
o Determine if these have been Implemented

227
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this un_______ing is to identify those controls that might reduce the risk of misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

228
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to id_____y those controls that might reduce the risk of misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

229
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those con____s that might reduce the risk of misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

230
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the r___ of misstatements.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

231
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the au_____ believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

232
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these co______s can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

233
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be r__ied upon, tests of controls will be performed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

234
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, t___s of controls will be performed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

235
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of con____s will be performed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

236
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be per____ed to evaluate their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

237
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to eva____ their operating effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

238
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their op____ing effectiveness.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

239
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating eff________ess.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

240
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they pr___ effective, the auditor will be able to reduce substantive testing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

241
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove eff______, the auditor will be able to reduce substantive testing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

242
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to red___ substantive testing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

243
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce sub_______ testing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

244
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive t___ing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The goal of this understanding is to identify those controls that might reduce the risk of misstatements.

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

245
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the au_____ is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

246
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to dete_______ what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

247
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what co_____s have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

248
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been impl______ed (are being used),

and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

249
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being u__d),

and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

250
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is n__ determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

251
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not det_______ing whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

252
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the con____s have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

253
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been ope___ing effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

254
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating ef______ly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used),

and is not determining whether the controls have been operating effectively.

255
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the au_____ is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

256
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only ne_______y in a financial statement audit if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

257
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the con____s have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

258
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

De______ing whether the controls have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

259
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a fi_______ statement audit if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

260
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement audit if the au_____ plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement audit if the auditor plans to rely on the controls.

261
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating effectively - is only necessary in a financial statement au___ if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to RELY on the controls.

262
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to r___ on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to RELY on the controls.

263
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor p___s to RELY on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to RELY on the controls.

264
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to RELY on the con____s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Determining whether the controls have been operating EFFECTIVELY - is only necessary in a financial statement audit if the auditor plans to RELY on the controls.

265
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been imp______ed (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

266
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The au_____’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

267
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main co______ is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

268
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific co______ prevents, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

269
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and h__, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

270
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control pre____s, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

271
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, det___s, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

272
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and cor_____s material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

273
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects ma______ misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

274
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material miss________s in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

275
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in rel_____ assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

276
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant ass______s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

277
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to det_______ what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

278
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the au_____ has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

279
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main con____ is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

280
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has g___ed an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

281
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may de____ to assess the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

282
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an un________ing of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

283
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control str_______,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

284
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to ass___ the Risk of Material Misstatement high (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement high (not rely on internal control),

285
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement h___ (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

286
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the R___ of Material Misstatement HIGH (not rely on internal control),

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

287
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (n__ rely on internal control),

in which case there is no point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in determining whether the controls are effective.

288
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not r___ on internal control),

in which case there is no point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in determining whether the controls are effective.

289
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in determining whether the controls are eff______.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in determining whether the controls are effective.

290
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in det_______ing whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Once the auditor has gained an understanding of the internal control structure,

they may decide to assess the Risk of Material Misstatement HIGH (not rely on internal control),

in which case there is no point in determining whether the controls are effective.

291
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the int______ control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

292
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is n_ point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

293
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no po___ in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

294
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Notice, however, that the auditor is only trying to determine what controls have been implemented (are being used), and is not determining whether the controls have been operating effectively.

The latter is only necessary in a financial statement audit if the auditor plans to rely on the controls.

The auditor’s main concern is whether, and how, a specific control prevents, detects, and corrects material misstatements in relevant assertions.

Once the auditor has gained an understanding of the internal control structure, they may decide to assess the Risk of Material Misstatement high (not rely on internal control), in which case there is no point in determining whether the controls are effective.

295
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control str______ include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
296
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior au___s
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
297
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
298
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Pr___ audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
299
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperf_______
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
300
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • In_____y
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
301
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Insp_____
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
302
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Obs______
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
303
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The tec______s available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
304
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain info______ about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

  • Prior audits
  • Reperformance
  • Inquiry
  • Inspection
  • Observation
305
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Re____ing audit documentation that document the internal control structure of the client in prior years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

306
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing au___ documentation that document the internal control structure of the client in prior years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

307
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit docu________ that document the internal control structure of the client in prior years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

308
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that docu____ the internal control structure of the client in prior years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

309
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control str______ of the client in prior years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

310
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in pr___ years.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

311
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Rep__________
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

312
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Ap___ing the control that the client personnel presumably performed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

313
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the con____ that the client personnel presumably performed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

314
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client per______ presumably performed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

315
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the cli___ personnel presumably performed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

316
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably per____ed to determine if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

317
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to det_______ if the procedure was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

318
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the pro_______ was performed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

319
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was per____ed properly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

320
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed pr_____ly.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

321
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inq____
– Asking management and other client personnel to describe the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

322
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– A__ing management and other client personnel to describe the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

323
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking ma________ and other client personnel to describe the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

324
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and ot___ client personnel to describe the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

325
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client per_______ to describe the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

326
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to des____ the controls that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

327
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the con____s that they are currently using.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

328
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently u_ing.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

329
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

• Insp______
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

330
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Ex____ing documents that are used in internal control, such as authorization forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

331
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining doc_____s that are used in internal control, such as authorization forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

332
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are u__d in internal control, such as authorization forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

333
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal con____, such as authorization forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

334
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as auth_________ forms and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

335
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization f___s and procedures manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

336
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and pro_____es manuals.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

337
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures ma____s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

338
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Obs_______
– Watching employees perform their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Observation
– Watching employees perform their jobs.

339
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– W____ing employees perform their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees perform their jobs.

340
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching em____ees perform their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees perform their jobs.

341
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees per____ their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees perform their jobs.

342
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees perform their j__s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Observation
– Watching employees perform their jobs.

343
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the au_____ to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Observation
– Watching employees perform their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Observation
– Watching employees perform their jobs.

344
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Pr___ audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Reperf________
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inq____
– Asking management and other client personnel to describe the controls that they are currently using.

• Insp_______
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Obse_______
– Watching employees perform their jobs.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

The techniques available to the auditor to gain information about a client’s internal control structure include:

• Prior audits
– Reviewing audit documentation that document the internal control structure of the client in prior years.

• Reperformance
– Applying the control that the client personnel presumably performed to determine if the procedure was performed properly.

• Inquiry
– Asking management and other client personnel to describe the controls that they are currently using.

• Inspection
– Examining documents that are used in internal control, such as authorization forms and procedures manuals.

• Observation
– Watching employees perform their jobs.

345
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the au_____ is initially interested in the form, but is ultimately interested in the substance of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

346
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially inte____ed in the form, but is ultimately interested in the substance of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

347
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the f___, but is ultimately interested in the substance of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

348
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ul______ly interested in the substance of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

349
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately int______ed in the substance of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

350
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the sub______ of the controls.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

351
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the co______s.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

352
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inq_____ and inspection will provide the auditor with information about controls that have been designed,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

353
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and ins_______ will provide the auditor with information about controls that have been designed,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

354
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will pro____ the auditor with information about controls that have been designed,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

355
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about con____s that have been designed,

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

356
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been de____ed,

but observation will reveal that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by management.

357
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but obse_______ will reveal that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by management.

358
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will re____ that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by management.

359
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being en____ed by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by management.

360
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by ma________.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

but observation will reveal that these controls aren’t actually being enforced by management.

361
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is in_____ly interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

362
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the sub____ce of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

363
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, in_____y and inspe_____ will provide the auditor with information about controls that have been designed, but obs_______ will reveal that these controls aren’t actually being enforced by management.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

364
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Obse_______ is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

365
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially cri____ in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

366
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is esp_____ly critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

367
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in de______ing whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

368
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether con____s involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

369
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving seg_______ of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

370
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of d___es are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

371
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being impl_______ed in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

372
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in pra______, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

373
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in th____y.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

374
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the f___, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

375
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inq___y and inspe_____ will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

376
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Obse_______ is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

377
Q

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

A

Obtain an Understanding of the Entity’s Internal Control Structure (AU-C 315)

Step 1 –
1. Understand the Design of CRIME by performing Risk Assessment Procedures

Keep in mind that the auditor is initially interested in the form, but is ultimately interested in the substance of the controls.

Often, inquiry and inspection will provide the auditor with information about controls that have been designed, but observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

378
Q

To evaluate the implementation of a control means to determine whether a control is actually ___________ by the entity.

A

To evaluate the implementation of a control means to determine whether a control is actually being USED by the entity.

379
Q

What does it mean to evaluate the implementation of a control?

A

To evaluate the implementation of a control means to determine whether a control is actually being used by the entity.

380
Q

If the control is improperly designed, it may represent a _______________ in the entity’s internal control.

A

If the control is improperly designed, it may represent a material weakness in the entity’s internal control.

381
Q

What may cause a material weakness in the entity’s internal control?

A

If the control is improperly designed, it may represent a material weakness in the entity’s internal control.

382
Q

What are procedures that designed to provide the auditor with an adequate understanding to enable the auditor to effectively assess the risk of material misstatement of the financial statements?

A

What are procedures that designed to provide the auditor with an adequate understanding to enable the auditor to effectively assess the risk of material misstatement of the financial statements?

Answer: The performance of risk assessment procedures.

An auditor obtains an understanding of the entity and its environment, including its internal control (CRIME) through the performance of risk assessment procedures.

These are procedures designed to provide the auditor with an adequate understanding to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

383
Q

Provide a list of risk assessment procedures:

  • A_________ procedures
  • In________ of management and others within the entity
  • In_________ (of documents and records)
  • O__________ (the application of specific controls)
A

Risk assessment procedures include:

  • Analytical procedures (Using high level data)
  • Inquiries of management and others within the entity, including inquiries of internal auditors.
  • Inspection (of documents and records)
  • Observation (the application of specific controls)
384
Q

Provide a list of risk assessment procedures:

A

Risk assessment procedures include:

  • Analytical procedures (Using high level data)
  • Inquiries of management and others within the entity, including inquiries of internal auditors.
  • Inspection (of documents and records)
  • Observation (the application of specific controls)
385
Q

The performance of risk assessment procedures designed to

provide the auditor with an __________________

to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

A

The performance of risk assessment procedures designed to

provide the auditor with an adequate understanding

to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

386
Q

The performance of risk assessment procedures designed to

provide the auditor with an adequate understanding

to enable the auditor to _________________ the risk of material misstatement of the financial statements.

A

The performance of risk assessment procedures designed to

provide the auditor with an adequate understanding

to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

387
Q

The performance of risk assessment procedures designed to

provide the auditor with an adequate understanding

to enable the auditor to effectively assess the ____________________ of the financial statements.

A

The performance of risk assessment procedures designed to

provide the auditor with an adequate understanding

to enable the auditor to effectively assess the risk of material misstatement of the financial statements.

388
Q

In order to obtain info about an entity’s internal controls, if the auditor is a continuing auditor, he/ she should review _______________________.

A

In order to obtain info about an entity’s internal controls, if the auditor is a continuing auditor, he/ she should review prior period engagement files.

389
Q

When obtaining an understanding of controls that are relevant to the audit, the auditor may not rely exclusively on ________ to evaluate the design of those controls.

A

When obtaining an understanding of controls that are relevant to the audit, however, the auditor may NOT RELY exclusively on INQUIRIES to evaluate the design of those controls and to determine whether they have been implemented.

390
Q

If the design of the control has NO potential of _______________, the control is NOT RELEVANT to the audit.

A

If the design of the control has NO potential of reducing RMM, the control is NOT RELEVANT to the audit.

391
Q

If the design of the control has NO potential of reducing RMM, the control is _______________ to the audit.

A

If the design of the control has NO potential of reducing RMM, the control is NOT RELEVANT to the audit.

392
Q

What the auditor can determine if the design of the control has potential of reducing RMM?

1) if the control has been ___________
2) if it is _______________________

A

If the design of the control has potential of reducing RMM the auditor can determine

1) if the control has been implemented
2) if it is operating as it was designed

only by performing a walk through.

393
Q

What the auditor can determine if the design of the control has potential of reducing RMM?

A

If the design of the control has potential of reducing RMM the auditor can determine

1) if the control has been implemented
2) if it is operating as it was designed

only by performing a walk through.

394
Q

What the auditor could perform in order to determine

1) if the control has been implemented and
2) if it is operating as it was designed ?

A

A Walk Through

If the design of the control has potential of reducing RMM the auditor can determine

1) if the control has been implemented
2) if it is operating as it was designed

only by performing a walk through.

395
Q

A walk through provides information about the _______ and ______________ of a control.

A

A walk through provides information about the
1) design and
2) implementation
of a control.

396
Q

A walk through provides information about ______________________ of a control.

A

A walk through provides information about the 1) design and 2) implementation of a control.

397
Q

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine

if the control was ____________ throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

A

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine

if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

398
Q

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine

if the control was operating effectively throughout the period being audited

or to rely on the control as a _________________ the nature, timing, and extent of further audit procedures.

A

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine

if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

399
Q

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine:

A

A walk through provides information about the 1) design and 2) implementation of a control.

A walk through is NOT sufficient to determine

if the control was operating effectively throughout the period being audited

or to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures.

400
Q

If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was operating effectively throughout the affected period through the ___________________________.

A

If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was operating effectively throughout the affected period through the PERFORMANCE of tests of controls.

401
Q

If the auditor intends to rely on the control as a _________________ the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was operating effectively throughout the affected period through the PERFORMANCE of tests of controls.

A

If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was operating effectively throughout the affected period through the PERFORMANCE of tests of controls.

402
Q

If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was _______________ throughout the affected period through the PERFORMANCE of tests of controls.

A

If the auditor intends to rely on the control as a basis for modifying the nature, timing, and extent of further audit procedures,

the auditor is REQUIRED to determine if the control was operating effectively throughout the affected period through the PERFORMANCE of tests of controls.

403
Q

The auditor can determine if the control was operating effectively through _________________________.

A

The auditor can determine if the control was operating effectively through the PERFORMANCE of tests of controls.

404
Q

What are control deficiencies?

A

Control deficiencies
- weaknesses in internal control that might allow errors to occur without the ability to identify and correct them on a timely basis.

405
Q

What are weaknesses in internal control?

A

Weaknesses in internal control might allow errors to occur without the ability to identify and correct them on a timely basis.

406
Q

What type of control deficiencies that auditor must communicate to management and those charged with governance?

Significant deficiencies
Material weaknesses

A

What type of control deficiencies that auditor must communicate to management and those charged with governance?

Both
Significant deficiencies and Material weaknesses

Identified deficiencies will be evaluated to determine if they are significant deficiencies or material weaknesses, both of which must be communicated to management and those charged with governance.

407
Q

The knowledge obtained through risk assessment procedures is used to:

• _________________ of potential misstatements
(Errors or Fraud).
• _______________ that affect the risk of material misstatements.
• _______ tests of controls and substantive procedures.

A

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).
• Consider factors that affect the risk of material misstatements.
• Design tests of controls and substantive procedures.

408
Q

The knowledge obtained through risk assessment procedures is used to:

A

The knowledge obtained through risk assessment procedures is used to:

• Identify the types of potential misstatements
(Errors or Fraud).
• Consider factors that affect the risk of material misstatements.
• Design tests of controls and substantive procedures.

409
Q

Understanding if the controls have been implemented doesn’t require evaluating their operating ____________.

A

Understanding if the controls have been implemented doesn’t require evaluating their operating effectiveness.

410
Q

Understanding if the controls have been __________ doesn’t require evaluating their operating effectiveness.

A

Understanding if the controls have been implemented doesn’t require evaluating their operating effectiveness.

411
Q

Understanding if the controls have been implemented doesn’t require evaluating their _______________________.

A

Understanding if the controls have been implemented doesn’t require evaluating their operating effectiveness.

412
Q

If the auditor believes that these controls can be relied upon, _______________ will be performed to evaluate their operating effectiveness.

A

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

413
Q

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their ___________________.

A

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

414
Q

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce __________________.

A

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

415
Q

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove ________, the auditor will be able to reduce substantive testing.

A

If the auditor believes that these controls can be relied upon, tests of controls will be performed to evaluate their operating effectiveness.

Assuming they prove effective, the auditor will be able to reduce substantive testing.

416
Q

What types of techniques (that help auditor gains information about a client’s internal control structure)

that provide information about design of internal controls?

A

What types of techniques (that help auditor gains information about a client’s internal control structure) that provide information about design of internal controls?

Inquiry
Inspection

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

  • Inquiry – Asking management and other client personnel to describe the controls that they are currently using.
  • Inspection – Examining documents that are used in internal control, such as authorization forms and procedures manuals.
417
Q

What types of techniques (that help auditor gains information about a client’s internal control structure)

that provide information about design of internal controls?

  • _________ – Asking management and other client personnel to describe the controls that they are currently using.
  • _________ – Examining documents that are used in internal control, such as authorization forms and procedures manuals.
A

What types of techniques (that help auditor gains information about a client’s internal control structure) that provide information about design of internal controls?

Inquiry
Inspection

Often, inquiry and inspection will provide the auditor with information about controls that have been designed,

  • Inquiry – Asking management and other client personnel to describe the controls that they are currently using.
  • Inspection – Examining documents that are used in internal control, such as authorization forms and procedures manuals.
418
Q

What types of techniques (that help auditor gains information about a client’s internal control structure)

that will reveal that these controls aren’t actually being enforced by management?

A

What types of techniques (that help auditor gains information about a client’s internal control structure) that will reveal that these controls aren’t actually being enforced by management?

Observation

Observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

• Observation – Watching employees perform their jobs.

419
Q

What types of techniques (that help auditor gains information about a client’s internal control structure)

that will reveal that these controls aren’t actually being enforced by management?

• _____________ – Watching employees perform their jobs.

A

What types of techniques (that help auditor gains information about a client’s internal control structure) that will reveal that these controls aren’t actually being enforced by management?

Observation

Observation will reveal that these controls aren’t actually being enforced by management.

Observation is especially critical in determining whether controls involving segregation of duties are being implemented in practice, and not just in theory.

• Observation – Watching employees perform their jobs.

CPA AUD Flashcards (62 decks)

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