Risk of MM

Question 1

Procedures

Answer 1

1) Obtain an understanding including I/C
2) Assess the risk
3) Respond to risk (test of controls/substantive tests)
4) Evaluate Audit Evidence

Question 2

Understanding entity’s I/C

Answer 2

1) Evaluating design AND determining if they have been implemented

Question 3

Operating effectiveness

Answer 3

Test of Controls

Question 4

Risk assessment procedures

Answer 4

1) Inquiry
2) Analytical Procedures
3) Observation and Inspection
4) Audit team discussion