Scribd
Upload
24 views

04 Quiz Response To Assessed Risk

accountancy subject

Uploaded by

Shannise Dayne Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
24 views

04 Quiz Response To Assessed Risk

accountancy subject

Uploaded by

Shannise Dayne Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

04 QUIZ: PSA 330 THE AUDITOR’S RESPONSES TO ASSESSED RISKS

INSTRUCTIONS: HIGHLIGHT THE CORRECT LETTER AND ANSWER

1. The objective of the auditor is to obtain sufficient appropriate audit evidence about the assessed
risks of material misstatement, through

A. Designing appropriate responses to those risks


B. Implementing appropriate responses to those risks
C. Both A. and B.
D. None of the above

2. Substantive procedure is an audit procedure designed to detect material misstatements at the


assertion level. Substantive procedures comprise:

A. Test of controls and analytical procedures of controls


B. Tests of details (of classes of transactions, account balances, and disclosures) and
substantive analytical procedures.
C. Control and substantive analytical procedures
D. None of the above

3. This type of test determines the fairness of significant financial statement assertions.
A. Tests of Controls
B. Substantive Tests
C. Inherent Tests
D. None of the above

4. The assessment of the risks of material misstatement at the financial statement level, and
thereby the auditor’s overall responses, is affected by the auditor’s understanding of the control
environment. An effective control environment may allow the auditor to have more confidence
in internal control and the reliability of audit evidence generated internally within the entity.
Weaknesses in the control environment, however, have the opposite effect; for example, the
auditor may respond to an ineffective control environment by:

A. Conducting more audit procedures at an interim date.


B. Obtaining more extensive audit evidence from substantive procedures.
C. Decreasing the number of locations and accounts to be included in the audit scope.
D. Increasing the test of controls

5. This choice in designing a substantive test specifically identifies the size of a sample that is
needed to meet the acceptable level of detection risk.

A. Nature
B. Timing
C. Extent
D. Staffing
FOR #s. 6 to 10, WRITE THE MISSING WORD FROM THE FIGURE BELOW:

6.

7.

8.

9.

10.

You might also like