Audit Risk

Question 1

IR is the ..

Answer 1

Succeptibility of a relevant assertion to matetial mistatement

Question 2

If substantive provedures cannot provide details do..

Answer 2

TOC

Question 3

Bentuk subtantive test apa aja?

Answer 3

Verification
Reperformance
Ratios
Confirmation

Question 4

Dual process

Answer 4

TOC and test of detail

Question 5

Control risk is assed based on

Answer 5

Fs assertion

Question 6

Ultimate purpose of CR

Answer 6

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

Question 7

Before the BS date means..

Answer 7

More interm than at year end because IC is effvtive

Question 8

Obtaining a letter is what form of precedure?

Answer 8

Substantive

Question 9

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

Answer 9

Test if control

NOT analytical procedures

Question 10

Even if cr is low still have to do..

Answer 10

Some Substantive test

Question 11

Complexity if computer system, document electronic, which risk?

Answer 11

CR

Question 12

If CR high PDR?

Answer 12

Pdr low, substantive testing increase

Question 13

CR is low what have the audited done?

Answer 13

Test of Control

Question 14

Required to evaluate the operating effectiveness of IC

True or False

Answer 14

False only need to unserstand the design and implementatin

Question 15

Audit risk is judgmental so what procedures should they do?

Answer 15

Perfom substantive test for all relevant assertion

Question 16

CR at max what to do?

Answer 16

Doccument the assesment

Question 17

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

Answer 17

Identify specific IC control

Perform TOC

Question 18

Toc
AP
Risk assesment

Which are must?

Answer 18

Risk assesment

And analytical procedur

Question 19

Which of the risk can be tested in nonquantitative

Answer 19

Ir cr pdr

Question 20

Is toc required for every internal control

Answer 20

No, if IC not effective no need to test

Question 21

Reperformance is form of

Answer 21

TOC

Question 22

Pdr inversely related with…

Answer 22

Assurance of Substantive testing

Question 23

Two things you can do if PDR is low

Answer 23

Do more testing

Have more experinced members

Question 24

Does extent of TOC change PDR?

Answer 24

No

Question 25

Judgmental misstatement includes?

Answer 25

Involving estimates

Question 26

Account balances assertion

Answer 26

Cver

Question 27

Transcation balances assertion

Answer 27

Coveu

Question 28

Presentation Disclosure assertion

Answer 28

Cvru

Question 29

Completenes assertion evidence

Answer 29

Traving, Analytical review Obaervation

Question 30

Cuttoff

Answer 30

Make sure no back dating

Question 31

Valution

Answer 31

Inspection Reconciliation Recalculation

Question 32

Existence

Answer 32

Vouching | Observation

Question 33

Right and obligation

Answer 33

Inspect

Question 34

Understandibility and classification evidence

Answer 34

Review Inqury of management Inspection

Question 35

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

Answer 35

Income statement account

Question 36

Related party transcation

Answer 36

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

Question 37

Evaluate reasonableness of accounting estimates my help auditor test ...

Answer 37

Reasonablness of account balance

Question 38

Noncomplience with law and regs has nothing to do with

Answer 38

INternal control Because IC does not detect transcations and balances

Question 39

Failure in petty cash disubursment what effect on Fs

Answer 39

Immaterial

Question 40

Forgot to write off have why effect to fs

Answer 40

Immaterial

Question 41

Obsolete equipment not retired what effect in FS

Answer 41

Small

Question 42

Is politician contribution a bribe?

Answer 42

No

Question 43

Found noncomplience with indirect effects, what to do next?

Answer 43

Apply audit procedure to obtained understanding whether t occurred or not

Question 44

Payment to what account that suspects noncomplience issues?

Answer 44

Cash Beaerer Purchase cahsier checks Transfer fund

Question 45

When does the auditor withdraw from engagement

Answer 45

When client doesnt want to accept auditor judgment And When they cannot believe on management representation anymore

Question 46

Most reliable evidence

Answer 46

Auditor’s knowledge which includes Observation Exaintation Inspection Recalculation

Question 47

The cost of obtaining evidence matters or not?

Answer 47

Matters

Question 48

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

Answer 48

Sufficieny

Question 49

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

Answer 49

No

Question 50

To be appropriate evidence need to be Both reliable and relevant or just one of them?

Answer 50

Both

Question 51

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

Answer 51

Do more testing on the account balance

Question 52

In overall audit reveiw what ratio is common calculated

Answer 52

Total debt/total asset

Question 53

Ap in the final review should be used to see wheter

Answer 53

Evidence gather is adequate to to response to unusual and unexpected