BYU Acc 406 Audit Final Exam with verified ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
detailed answers ||\\//||
Client Acceptance/Continuance
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Preliminary Audit Procedures ||\\//|| ||\\//||
Plan the Audit
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Consider and Audit Internal Controls ||\\//|| ||\\//|| ||\\//|| ||\\//||
Audit Business Processes and Related Accounts
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Complete the Audit ||\\//|| ||\\//||
Evaluate Results and Issue the Audit Report - correct answer✔✔Phases of an Audit
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Assess Business Risks ||\\//|| ||\\//||
Establish Materiality ||\\//||
Consider Multi-Locations ||\\//||
Assess the need for Specialists
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Identify Related Parties ||\\//|| ||\\//||
Consider Value-Added Services - correct answer✔✔Steps in Planning the Audiit
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Materiality - correct answer✔✔The amount by which a set of financial statements could be ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
misstated without affecting the judgement of a reasonable person. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Tolerable Misstatement - correct answer✔✔The amount of the overall materiality that is
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used to establish a scope for the audit procedures for the individual account balance or
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disclosures.
, AR = RMM x DR - correct answer✔✔Audit Risk Model
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Audit Risk - correct answer✔✔The risk that the auditor expresses an inappropriate audit
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
opinion when the financial statements are materially misstated. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Risk of Material Misstatement - correct answer✔✔The pre-audit risk that the entity's
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financial statements contain a material misstatement whether caused by error or fraud. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Inherent Risk - correct answer✔✔the susceptibility of a set of accounts or transactions to
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significant control problems in the absence of internal control ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Control Risk - correct answer✔✔The risk that a material misstatement that could occur in
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
an account will not be prevented or detected and corrected on a timely basis by internal
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
control.
Detection Risk - correct answer✔✔The risk that the procedures performed by the auditor to ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
reduce audit risk to an acceptably low level will not detect a misstatement that exists and
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that could be material, either individually or when aggregated with others.
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Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification
Presentation - correct answer✔✔Management Assertions about classes of transactions and ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
events
detailed answers ||\\//||
Client Acceptance/Continuance
||\\//||
Preliminary Audit Procedures ||\\//|| ||\\//||
Plan the Audit
||\\//|| ||\\//||
Consider and Audit Internal Controls ||\\//|| ||\\//|| ||\\//|| ||\\//||
Audit Business Processes and Related Accounts
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Complete the Audit ||\\//|| ||\\//||
Evaluate Results and Issue the Audit Report - correct answer✔✔Phases of an Audit
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Assess Business Risks ||\\//|| ||\\//||
Establish Materiality ||\\//||
Consider Multi-Locations ||\\//||
Assess the need for Specialists
||\\//|| ||\\//|| ||\\//|| ||\\//||
Identify Related Parties ||\\//|| ||\\//||
Consider Value-Added Services - correct answer✔✔Steps in Planning the Audiit
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Materiality - correct answer✔✔The amount by which a set of financial statements could be ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
misstated without affecting the judgement of a reasonable person. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Tolerable Misstatement - correct answer✔✔The amount of the overall materiality that is
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
used to establish a scope for the audit procedures for the individual account balance or
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
disclosures.
, AR = RMM x DR - correct answer✔✔Audit Risk Model
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Audit Risk - correct answer✔✔The risk that the auditor expresses an inappropriate audit
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
opinion when the financial statements are materially misstated. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Risk of Material Misstatement - correct answer✔✔The pre-audit risk that the entity's
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
financial statements contain a material misstatement whether caused by error or fraud. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Inherent Risk - correct answer✔✔the susceptibility of a set of accounts or transactions to
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
significant control problems in the absence of internal control ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Control Risk - correct answer✔✔The risk that a material misstatement that could occur in
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
an account will not be prevented or detected and corrected on a timely basis by internal
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
control.
Detection Risk - correct answer✔✔The risk that the procedures performed by the auditor to ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
reduce audit risk to an acceptably low level will not detect a misstatement that exists and
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
that could be material, either individually or when aggregated with others.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification
Presentation - correct answer✔✔Management Assertions about classes of transactions and ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
events
