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AT - 11 Further Audit Procedures ToC and ST

Substantive tests of details and risk assessment procedures are considered further audit procedures that may be designed after assessing the risks of material misstatement. When controls do not relate to significant risks, it is acceptable to rely on tests of controls performed during the previous year's audit. Reconciliations performed monthly on accounts is an example of a type of control that may be tested. Only tests of balances involve physical examination and confirmation. Reviewing the client's production quality control program is not an appropriate auditing procedure supporting fairness of financial presentation.

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113 views

AT - 11 Further Audit Procedures ToC and ST

Substantive tests of details and risk assessment procedures are considered further audit procedures that may be designed after assessing the risks of material misstatement. When controls do not relate to significant risks, it is acceptable to rely on tests of controls performed during the previous year's audit. Reconciliations performed monthly on accounts is an example of a type of control that may be tested. Only tests of balances involve physical examination and confirmation. Reviewing the client's production quality control program is not an appropriate auditing procedure supporting fairness of financial presentation.

Uploaded by

Mitch Minglana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

Which of the following are considered further audit procedures that may be designed after assessing the risks of
material misstatement?

Substantive tests of Risk assessment


details procedures

Yes Yes

Yes No

No Yes

No No

Response: Yes, No
Correct answer: Yes, No
Score: 1 out of 1 Yes

Question 2
When is it acceptable to rely on tests of controls performed during the previous year’s audit?

Response: When the controls do not relate to significant risks


Correct answer: When the controls do not relate to significant risks
Score: 1 out of 1 Yes

Question 3
Which of the following is an example of a type of control that may be tested?

Response: Reconciliations performed monthly on accounts.


Correct answer: Reconciliations performed monthly on accounts.
Score: 1 out of 1 Yes

Question 4
Only _______ involve physical examination and confirmation.

Response: tests of balances
Correct answer: tests of balances
Score: 1 out of 1 Yes

Question 5
Which of the following is not an appropriate auditing procedure supporting fairness of financial presentation?

Response: Reviewing the client's production quality control program.


Correct answer: Reviewing the client's production quality control program.
Score: 1 out of 1 Yes

Question 6
An auditor's test of transaction processing whereby the auditor is evaluating both the operation and effectiveness of controls and
the correctness and completeness of processing and posting to an account balance is:

Response: a dual-purpose test.


Correct answer: a dual-purpose test.
Score: 1 out of 1 Yes

Question 7
A financial statement auditor concludes that internal controls over cash are not functioning as designed. She believes that material
misstatements to the cash accounts are possible because of the deficiencies. What is the course of action that the auditor will most
likely take?

Response: Develop specific tests for cash balances to determine the extent of misstatement.
Correct answer: Develop specific tests for cash balances to determine the extent of misstatement.
Score: 1 out of 1 Yes

Question 8
If the auditor of financial statements understands internal control and assesses control risk as low, it is assumed that internal
control:

Response: will be tested to support the assessment.


Correct answer: will be tested to support the assessment.
Score: 1 out of 1 Yes

Question 9
An auditor may compensate for a weakness in internal control by increasing the

Response: Extent of analytical procedures.


Correct answer: Extent of analytical procedures.
Score: 1 out of 1 Yes

Question 10
When an auditor increases the assessed level of control risk because certain control activities were
determined to be ineffective, the auditor would most likely increase the

Response: Extent of tests of details.


Correct answer: Extent of tests of details.
Score: 1 out of 1

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