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ACC 409 EXAM 2 EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 ALREADY GRADED A+
Which best describes the numerical depiction of the relationship between
control, inherent, detection, and audit risk? - (ANSWER)Audit risk model
Which of the following factors will result in control risk being assessed at a higher
level? - (ANSWER)There is a lack of supervision of accounting personnel
The risk of material misstatement refers to which of the following? -
(ANSWER)The combination of inherent risk and control risk
The lower the dollar amount of the performance materiality the more audit
evidence is required. - (ANSWER)True
Consideration of internal control effectiveness is to determine nature, extent, &
timing of substantive testing. - (ANSWER)True
Which of the following best describes year-to-year comparisons of account
balances? - (ANSWER)Trend analyses
A misstatement is an error, either intentional or unintentional, that exists in a
transaction or account balance. - (ANSWER)True
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A risk factor indicating a heightened risk of fraud would be considered a
significant risk. - (ANSWER)True
Which of the following are two frequently used planning analytical procedures? -
(ANSWER)Ratio analyses and trend analyses
If materiality changes during the audit, what happens to previous decisions using
the initial materiality setting? - (ANSWER)The auditor reassess those previous
decisions
Audit risk is the risk the auditor expresses an inappropriate audit opinion when
financials are materially misstated. - (ANSWER)True
If $15,000 is material to income statement, but $25,000 is material to the balance
sheet, materiality should be what amount? - (ANSWER)$15,000
Auditors and management should agree on what is considered material. -
(ANSWER)False
Performance materiality is used for assessing risks and determining the nature,
timing, and extent of procedures. - (ANSWER)True
Which of the following statements is false? - (ANSWER)Inherent risk is inversely
related to the level of control risk
ACC 409 EXAM 2 EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2025 ALREADY GRADED A+
Which best describes the numerical depiction of the relationship between
control, inherent, detection, and audit risk? - (ANSWER)Audit risk model
Which of the following factors will result in control risk being assessed at a higher
level? - (ANSWER)There is a lack of supervision of accounting personnel
The risk of material misstatement refers to which of the following? -
(ANSWER)The combination of inherent risk and control risk
The lower the dollar amount of the performance materiality the more audit
evidence is required. - (ANSWER)True
Consideration of internal control effectiveness is to determine nature, extent, &
timing of substantive testing. - (ANSWER)True
Which of the following best describes year-to-year comparisons of account
balances? - (ANSWER)Trend analyses
A misstatement is an error, either intentional or unintentional, that exists in a
transaction or account balance. - (ANSWER)True
, 2|Page
A risk factor indicating a heightened risk of fraud would be considered a
significant risk. - (ANSWER)True
Which of the following are two frequently used planning analytical procedures? -
(ANSWER)Ratio analyses and trend analyses
If materiality changes during the audit, what happens to previous decisions using
the initial materiality setting? - (ANSWER)The auditor reassess those previous
decisions
Audit risk is the risk the auditor expresses an inappropriate audit opinion when
financials are materially misstated. - (ANSWER)True
If $15,000 is material to income statement, but $25,000 is material to the balance
sheet, materiality should be what amount? - (ANSWER)$15,000
Auditors and management should agree on what is considered material. -
(ANSWER)False
Performance materiality is used for assessing risks and determining the nature,
timing, and extent of procedures. - (ANSWER)True
Which of the following statements is false? - (ANSWER)Inherent risk is inversely
related to the level of control risk
