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Ch05-Audit Risk and Materiality
Ch05-Audit Risk and Materiality
MULTIPLE CHOICE:
ANSWER: D
ANSWER: A
ANSWER: D
58
Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality 59
ANSWER: D
ANSWER: D
ANSWER: A
ANSWER: A
ANSWER: D
ANSWER: A
ANSWER: C
ANSWER: D
Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality 61
ANSWER: B
ANSWER: B
ANSWER: A
ANSWER: B
ANSWER: D
ANSWER: A
ANSWER: B
Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality 63
ANSWER: B
ANSWER: A
ANSWER: C
ANSWER: D
ANSWER: A
ANSWER: B
ANSWER: A
ANSWER: D
ANSWER: B
ANSWER: B
ANSWER: D
ANSWER: B
31. With respect to errors and fraud, the auditor should plan
to
a. Search for errors or fraud that would have a
material effect on the financial statements.
b. Discover errors or fraud that would have a material
effect on the financial statements.
c. Search for errors that would have a material effect
and for fraud that would have either material or
immaterial effects on the financial statements.
d. Search for fraud that would have a material
effect and for errors that would have either material
or immaterial effects on the financial statements.
ANSWER: B
ANSWER: A
Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality 67
ANSWER: B
a. Yes Yes No
b. Yes No Yes
c. No Yes Yes
d. Yes Yes Yes
ANSWER: D
ANSWER: B
d. Return on sales.
ANSWER: B
ANSWER: A
ANSWER: B
ANSWER: A
Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality 69
ANSWER: C
COMPLETION:
ANSWER: DOCUMENT
43. High inherent risk, combined with high control risk, should
lead the auditor to the aggregate materiality
threshold.
ANSWER: INTENT
70 Chapter 5 Audit Planning: Assessment of Inherent Risk and Materiality
47. Inasmuch as its complement forms the basis for the audit
opinion, overall audit risk should be set .
ANSWER: LOW
ANSWER: DETECTION
ANSWER: INTEGRITY
ANSWER: RISK-DRIVEN
ANSWER: QUALITATIVE
MATCHING
SOLUTION:
1. a,c,e
2. a,f
3. c,g
4. a
5. a
6. b,c,e
7. d,f
PROBLEM/ESSAY
Required:
SOLUTION:
SOLUTION:
SOLUTION: