AUD 3 Internal Control 10 - Understanding the Internal Control Structure Flashcards

Question 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:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME)

Step 2 – Document the understanding of Internal Control

Step 3 – Assess Risk of Material Misstatement (RMM)
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o RELY
or
o NOT Rely

Step 5 – Reassess Risk of Material Misstatement (RMM) and evaluate results.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer

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:

Step 1 – Obtain an understanding of the design of all 5 components of the entity’s internal control (CRIME)

Step 2 – Document the understanding of Internal Control

Step 3 – Assess Risk of Material Misstatement (RMM)
RMM = IR × CR

Step 4 – Develop an audit strategy to either:
o RELY
or
o NOT Rely

Step 5 – Reassess Risk of Material Misstatement (RMM) and evaluate results.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures.

Question 2

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)

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
              CR below maximum
                   or
           o NOT Rely
               NOT to perform tests of controls
               Set Maximum CR

Step 5 – Reassess Risk of Material Misstatement (RMM) and evaluate results.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer

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)

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
              CR below maximum
                   or
           o NOT Rely
               NOT to perform tests of controls
               Set Maximum CR

Step 5 – Reassess Risk of Material Misstatement (RMM) and evaluate results.

Step 6 – Document conclusions and determine the effect on the planned substantive procedures.

Question 3

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.

Answer

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.

Question 4

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 und_______ing of the design of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 5

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 de____ of all 5 components of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 6

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 com________s of the entity’s internal control (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 7

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 en___y’s internal control (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 8

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 in______ control (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 9

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 con____ (CRIME) through the performance of risk assessment procedures.

Answer

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.

Question 10

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 (C_____) through the performance of risk assessment procedures.

Answer

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.

Question 11

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 per_________ of risk assessment procedures.

Answer

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.

Question 12

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 r___ assessment procedures.

Answer

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.

Question 13

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 ass_________ procedures.

Answer

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.

Question 14

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 proc______s.

Answer

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.

Question 15

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 – Doc_______ the understanding of Internal Control.

Answer

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.

Question 16

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 2 – Document the und________ing of Internal Control.

Answer

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 2 – Document the understanding of Internal Control.

Question 17

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 2 – Document the understanding of In______ Control.

Answer

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 2 – Document the understanding of Internal Control.

Question 18

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 2 – Document the understanding of Internal C______.

Answer

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 2 – Document the understanding of Internal Control.

Question 19

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 2 – Document the understanding of Internal Control.

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

           RMM = IR × CR

Answer

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 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

Question 20

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 3 – Ass___ Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and control risk (CR).

           RMM = IR × CR

Answer

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

           RMM = IR × CR

Question 21

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 3 – Assess Risk of Material Misstatement (RMM) which consists of in______ risk (IR) and control risk (CR).

           RMM = IR × CR

Answer

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

           RMM = IR × CR

Question 22

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 3 – Assess Risk of Material Misstatement (RMM) which consists of inherent risk (IR) and co_____ risk (CR).

           RMM = IR × CR

Answer

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

           RMM = IR × CR

Question 23

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

           R\_\_\_ = IR × CR

Answer

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

           RMM = IR × CR

Question 24

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

           RMM = \_\_ × CR

Answer

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

           RMM = IR × CR

Question 25

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

           RMM = IR × \_\_

Answer

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

           RMM = IR × CR

Question 26

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of co\_\_\_\_\_ (TofC) to determine if CR is below maximum,

Answer

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum,

Question 27

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Per\_\_\_\_ tests of control (TofC) to determine if CR is below maximum,

Answer

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum,

Question 28

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is be\_\_\_ maximum,

Answer

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum,

Question 29

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below max\_\_\_\_\_,

Answer

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum,

Question 30

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum, 
        reducing R\_\_ below the level of IR

Answer

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 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

Question 31

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if C_ is below maximum,

Answer

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 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

Question 32

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 4 – Develop an audit strategy to either:

        o (RELY?) 
        Perform tests of control (TofC) to determine if CR is below maximum, 
        re\_\_\_ing RMM below the level of IR

Answer

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 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

Question 33

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 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 I_

Answer

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 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

Question 34

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 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 mo\_\_\_\_\_\_\_ion of the nature, timing, and extent of further audit procedures (sub tests):

Answer

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 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):

Question 35

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 4 – Develop an audit strategy to either:

        o (RE\_\_ ?) 
        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):

Answer

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 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):

Question 36

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 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 
        al\_\_\_ing for the modification of the nature, timing, and extent of further audit procedures (sub tests):

Answer

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 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):

Question 37

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 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 na\_\_\_\_, timing, and extent of further audit procedures (sub tests):

Answer

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 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):

Question 38

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 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.

Answer

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 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.

Question 39

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 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 ext\_\_\_ of further audit procedures (sub tests):

Answer

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 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):

Question 40

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 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 fur\_\_\_\_ audit procedures (sub tests):

Answer

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 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):

Question 41

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 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 t\_\_\_s):

Answer

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 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):

Question 42

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 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 pro\_\_\_\_\_\_\_es (sub tests):

Answer

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 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):

Question 43

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 4 – Dev____ 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):

Answer

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 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):

Question 44

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 4 – Develop an audit strategy to either:

or

      o (NOT R\_\_\_)

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely)

Question 45

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to per\_\_\_\_ tests of controls,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls,

Question 46

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform t\_\_\_s of controls,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls,

Question 47

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of co\_\_\_\_\_\_s,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls,

Question 48

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing C_ at the maximum level as if the control did not exist,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not exist,

Question 49

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      ass\_\_\_ing CR at the maximum level as if the control did not exist,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not exist,

Question 50

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the max\_\_\_\_ level as if the control did not exist,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not exist,

Question 51

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not ex\_\_\_,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not exist,

Question 52

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did n\_\_ exist,

Answer

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 4 – Develop an audit strategy to either:

or

      o (NOT Rely) 
      Decide NOT to perform tests of controls, 
      assessing CR at the maximum level as if the control did not exist,

Question 53

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 4 – Develop an audit strategy to either:

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 R\_\_ as being equal to IR.

Answer

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 4 – Develop an audit strategy to either:

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.

Question 54

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 4 – Develop an audit strategy to either:

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 I_.

Answer

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 4 – Develop an audit strategy to either:

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.

Question 55

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 4 – Develop an audit strategy to either:

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 
       me\_\_\_\_ing RMM as being equal to IR.

Answer

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 4 – Develop an audit strategy to either:

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.

Question 56

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 4 – Develop an audit strategy to either:

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 eq\_\_\_ to IR.

Answer

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 4 – Develop an audit strategy to either:

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.

Question 57

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 4 – Develop an au___ 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.

Answer

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 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.

Question 58

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 4 – Develop an audit str____y 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.

Answer

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 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.

Question 59

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 4 – Develop an audit strategy to either:

        o (R\_\_\_ ?) 
        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 R\_\_\_) 
      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.

Answer

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 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.

Question 60

Q

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

An auditor per____s 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.

Answer

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.

Question 61

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 – Do______ the understanding of Internal Control.

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

Step 4 – Dev____ 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.

Answer

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.

Question 62

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 5 – Reas___s Risk of Material Misstatement and evaluate results.

Answer

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 5 – Reassess Risk of Material Misstatement and evaluate results.

Question 63

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 5 – Reassess R___ of Material Misstatement and evaluate results.

Answer

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 5 – Reassess Risk of Material Misstatement and evaluate results.

Question 64

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 5 – Reassess Risk of Material Misstatement and eva_____ results.

Answer

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 5 – Reassess Risk of Material Misstatement and evaluate results.

Answer 65

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 5 – Reassess Risk of Material Misstatement and evaluate results.

Answer 66

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 5 – Reassess Risk of Material Misstatement and evaluate results.

        o For controls for which tests of controls were performed,

Answer 67

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 5 – Reassess Risk of Material Misstatement and evaluate results.

        o For controls for which tests of controls were performed, 
        evaluate results to reassess RMM

Answer 68

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 5 – Reassess Risk of Material Misstatement and evaluate results.

        o For controls for which tests of controls were performed, 
        evaluate results to reassess RMM

Answer 69

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 5 – Reassess Risk of Material Misstatement and evaluate results.

        o For controls for which tests of controls were performed, 
        evaluate results to reassess RMM

Answer 70

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 5 – Reassess Risk of Material Misstatement and evaluate results.

        o For controls for which tests of controls were performed, 
        evaluate results to reassess RMM

Answer 71

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 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

Answer 72

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 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.

Answer 73

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 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.

Answer 74

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 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.

Answer 75

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 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.

Answer 76

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 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.

Answer 77

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 78

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 79

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 80

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 81

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 82

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 83

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 6 – Document conclusions and determine the effect on the planned substantive procedures.

Answer 84

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 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.

Answer 85

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 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.

Answer 86

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 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.

Answer 87

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 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.

Answer 88

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 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.

Answer 89

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 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.

Answer 90

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.

Answer 91

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 4 – Develop an audit strategy to either:

       o (RELY?) 
           Perform tests of control (TofC) to determine if CR is below maximum, 
            CR < 100%  or CR < 1.0
            RMM = IR x CR
            reducing RMM below the level of IR 
            RMM < 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, 
            CR = 100%  or CR = 1.0
            RMM = IR x CR
            RMM = IR x 1.0
            RMM = IR
            and measuring RMM as being equal to IR.

Answer 92

A

Obtain an 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?).

Answer 93

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 94

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 95

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 96

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 97

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 98

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 99

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 100

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 101

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 102

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 103

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 104

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 105

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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

Answer 106

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 107

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 108

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 109

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 110

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 111

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

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.

Answer 112

A

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

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.

Answer 113

A

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

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.

Answer 114

A

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

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.

Answer 115

A

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

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.

Answer 116

A

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

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.

Answer 117

A

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

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.

Answer 118

A

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

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.

Answer 119

A

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

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.

Answer 120

A

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

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.

Answer 121

A

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

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.

Answer 122

A

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

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.

Answer 123

A

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

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.

Answer 124

A

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

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.

Answer 125

A

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

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.

Answer 126

A

Obtain an 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)

Answer 127

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Analytical procedures (Using high level data)

Answer 128

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Analytical procedures (Using high level data)

Answer 129

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Analytical procedures (Using high level data)

Answer 130

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Analytical procedures (Using high level data)

Answer 131

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Analytical procedures (Using high level data)

Answer 132

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 133

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 134

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 135

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 136

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 137

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 138

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inquiries of management and others within the entity, including inquiries of internal auditors.

Answer 139

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inspection (of documents and records)

Answer 140

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inspection (of documents and records)

Answer 141

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Inspection (of documents and records)

Answer 142

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Observation (the application of specific controls)

Answer 143

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Observation (the application of specific controls)

Answer 144

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Observation (the application of specific controls)

Answer 145

A

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

Understand the Design of CRIME by performing Risk Assessment Procedures

Risk assessment procedures include:

• Observation (the application of specific controls)

Answer 146

A

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

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)

Answer 147

A

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

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)

Answer 148

A

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

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)

Answer 149

A

Obtain an 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)

Answer 150

A

Obtain an 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.