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CPA audit > Audit Risk > Flashcards

Audit Risk Flashcards

1
Q

IR is the ..

A

Succeptibility of a relevant assertion to matetial mistatement

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2
Q

If substantive provedures cannot provide details do..

A

TOC

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3
Q

Bentuk subtantive test apa aja?

A

Verification
Reperformance
Ratios
Confirmation

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4
Q

Dual process

A

TOC and test of detail

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5
Q

Control risk is assed based on

A

Fs assertion

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6
Q

Ultimate purpose of CR

A

Contribute to audit evaluation of the risk that material mistatement exist in FS

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7
Q

Before the BS date means..

A

More interm than at year end because IC is effvtive

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8
Q

Obtaining a letter is what form of precedure?

A

Substantive

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9
Q

If you want to rely on the IC what u hve to do?

A

Test if control

NOT analytical procedures

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10
Q

Even if cr is low still have to do..

A

Some Substantive test

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11
Q

Complexity if computer system, document electronic, which risk?

A

CR

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12
Q

If CR high PDR?

A

Pdr low, substantive testing increase

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13
Q

CR is low what have the audited done?

A

Test of Control

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14
Q

Required to evaluate the operating effectiveness of IC

True or False

A

False only need to unserstand the design and implementatin

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15
Q

Audit risk is judgmental so what procedures should they do?

A

Perfom substantive test for all relevant assertion

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16
Q

CR at max what to do?

A

Doccument the assesment

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17
Q

If the auditor asses risk base on effectiveness of controls auditors need to

A

Identify specific IC control

Perform TOC

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18
Q

Toc
AP
Risk assesment

Which are must?

A

Risk assesment

And analytical procedur

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19
Q

Which of the risk can be tested in nonquantitative

A

Ir cr pdr

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20
Q

Is toc required for every internal control

A

No, if IC not effective no need to test

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21
Q

Reperformance is form of

A

TOC

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22
Q

Pdr inversely related with…

A

Assurance of Substantive testing

23
Q

Two things you can do if PDR is low

A

Do more testing

Have more experinced members

24
Q

Does extent of TOC change PDR?

A

No

25
Q

Judgmental misstatement includes?

A

Involving estimates

26
Q

Account balances assertion

A

Cver

27
Q

Transcation balances assertion

A

Coveu

28
Q

Presentation Disclosure assertion

A

Cvru

29
Q

Completenes assertion evidence

A

Traving,

Analytical review

Obaervation

30
Q

Cuttoff

A

Make sure no back dating

31
Q

Valution

A

Inspection
Reconciliation
Recalculation

32
Q

Existence

A

Vouching

Observation

33
Q

Right and obligation

A

Inspect

34
Q

Understandibility and classification evidence

A

Review
Inqury of management
Inspection

35
Q

In the analytical procedure which account yield the highest level of evidence

A

Income statement account

36
Q

Related party transcation

A

Maintaining compensating balance arrangement

Borrow or sell something that is very low than market price

Making loan with no schedule

Review the loan receivables guarantees

37
Q

Evaluate reasonableness of accounting estimates my help auditor test …

A

Reasonablness of account balance

38
Q

Noncomplience with law and regs has nothing to do with

A

INternal control

Because IC does not detect transcations and balances

39
Q

Failure in petty cash disubursment what effect on Fs

A

Immaterial

40
Q

Forgot to write off have why effect to fs

A

Immaterial

41
Q

Obsolete equipment not retired what effect in FS

A

Small

42
Q

Is politician contribution a bribe?

A

No

43
Q

Found noncomplience with indirect effects, what to do next?

A

Apply audit procedure to obtained understanding whether t occurred or not

44
Q

Payment to what account that suspects noncomplience issues?

A

Cash
Beaerer
Purchase cahsier checks
Transfer fund

45
Q

When does the auditor withdraw from engagement

A

When client doesnt want to accept auditor judgment

And

When they cannot believe on management representation anymore

46
Q

Most reliable evidence

A

Auditor’s knowledge which includes

Observation
Exaintation
Inspection
Recalculation

47
Q

The cost of obtaining evidence matters or not?

A

Matters

48
Q

The amount of corroborative evidence obtained referes to reliability or suffiency?

A

Sufficieny

49
Q

Can auditor use difficulty and expense as basis to omit evidence?

A

No

50
Q

To be appropriate evidence need to be

Both reliable and relevant or just one of them?

A

Both

51
Q

At the review stage of AP if somthing appears of the account what should they do?

A

Do more testing on the account balance

52
Q

In overall audit reveiw what ratio is common calculated

A

Total debt/total asset

53
Q

Ap in the final review should be used to see wheter

A

Evidence gather is adequate to to response to unusual and unexpected

CPA audit (2 decks)

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