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ADVANCED RIGGING UPDATED TEST LATEST
EXAM WITH ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS/ALREADY
GRADED A+ 100% GUARANTEED TO PASS
CONCEPTS!
Performance Materiality is also known as
_____________. - .....ANSWER ...✔✔ Tolerable Error
Auditor uses Performance Materiality for
____________. - .....ANSWER ...✔✔ Determining
significant accounts, locations, and audit procedures.
Performance Materiality is what percent of Planning
Materiality? - .....ANSWER ...✔✔ 75%
What happens is Performance Materiality is set too
high? - .....ANSWER ...✔✔ Auditor might not perform
sufficient procedures to detect material misstatements.
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What happens if Performance Materiality is set too low?
- .....ANSWER ...✔✔ Auditor might perform more
substantive procedures than needed.
Overall Materiality is also known as _________. -
.....ANSWER ...✔✔ Planning Materiality
Auditors use Overall Materiality to ___________. -
.....ANSWER ...✔✔ Determine whether financial
statements overall are materially correct.
What does Posting Materiality signify? - .....ANSWER
...✔✔ The misstatements identified throughout the
audit that will be considered at the end of the audit in
determining whether the financial statements are
materially correct.
What percentage is Posting Materiality commonly set
at? - .....ANSWER ...✔✔ 5% of Planning Materiality
What is Materiality? - .....ANSWER ...✔✔ The
magnitude of an omission or misstatement of accounting
information that, in light of surrounding circumstances,
makes it probable that the judgment of a reasonable
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person relying on the information would have been
changed or influenced by the omission or misstatement.
What makes a fact Material? - .....ANSWER ...✔✔ If
there is a substantial likelihood that a reasonable
investor would have viewed the fact as having
significantly altered the total mix of information made
available.
What is the materiality level that an auditor uses for
determining significant accounts, significant locations,
and audit procedures for those accounts and locations? -
.....ANSWER ...✔✔ Performance Materiality
An auditor has determined performance materiality has
been set too high at the beginning of the audit. Which
procedures should this auditor consider to detect
misstatements? - .....ANSWER ...✔✔ The auditor
should perform additional substantive audit procedures.
Which risk exists at the overall financial statement level
and at the assertion level and can be categorized as
involving inherent risk and control risk? - .....ANSWER
...✔✔ Risk of material misstatement
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What represents an identified and assessed risk of
material misstatement that requires special audit
consideration? - .....ANSWER ...✔✔ Significant risk
What is the impact on the amount of acceptable audit
risk if an auditor believes the chance of financial failure
of a client is high? - .....ANSWER ...✔✔ The
acceptable audit risk is reduced.
Which factor should lead an auditor to assess inherent
risk as high? - .....ANSWER ...✔✔ The account balance
consists of a large number of complex transactions.
Which factor would lead an auditor to assess client
business risk at a higher level? - .....ANSWER ...✔✔
The client's use of information technology is incompatible
across systems and processes.
An auditor determines overall materiality of $500,000
would be material to the income statement and
$1,000,000 would be material to the balance sheet.
Which amount would an auditor typically assess
performance materiality to be for this client? -
.....ANSWER ...✔✔ 75% of $500,000
ADVANCED RIGGING UPDATED TEST LATEST
EXAM WITH ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS/ALREADY
GRADED A+ 100% GUARANTEED TO PASS
CONCEPTS!
Performance Materiality is also known as
_____________. - .....ANSWER ...✔✔ Tolerable Error
Auditor uses Performance Materiality for
____________. - .....ANSWER ...✔✔ Determining
significant accounts, locations, and audit procedures.
Performance Materiality is what percent of Planning
Materiality? - .....ANSWER ...✔✔ 75%
What happens is Performance Materiality is set too
high? - .....ANSWER ...✔✔ Auditor might not perform
sufficient procedures to detect material misstatements.
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What happens if Performance Materiality is set too low?
- .....ANSWER ...✔✔ Auditor might perform more
substantive procedures than needed.
Overall Materiality is also known as _________. -
.....ANSWER ...✔✔ Planning Materiality
Auditors use Overall Materiality to ___________. -
.....ANSWER ...✔✔ Determine whether financial
statements overall are materially correct.
What does Posting Materiality signify? - .....ANSWER
...✔✔ The misstatements identified throughout the
audit that will be considered at the end of the audit in
determining whether the financial statements are
materially correct.
What percentage is Posting Materiality commonly set
at? - .....ANSWER ...✔✔ 5% of Planning Materiality
What is Materiality? - .....ANSWER ...✔✔ The
magnitude of an omission or misstatement of accounting
information that, in light of surrounding circumstances,
makes it probable that the judgment of a reasonable
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person relying on the information would have been
changed or influenced by the omission or misstatement.
What makes a fact Material? - .....ANSWER ...✔✔ If
there is a substantial likelihood that a reasonable
investor would have viewed the fact as having
significantly altered the total mix of information made
available.
What is the materiality level that an auditor uses for
determining significant accounts, significant locations,
and audit procedures for those accounts and locations? -
.....ANSWER ...✔✔ Performance Materiality
An auditor has determined performance materiality has
been set too high at the beginning of the audit. Which
procedures should this auditor consider to detect
misstatements? - .....ANSWER ...✔✔ The auditor
should perform additional substantive audit procedures.
Which risk exists at the overall financial statement level
and at the assertion level and can be categorized as
involving inherent risk and control risk? - .....ANSWER
...✔✔ Risk of material misstatement
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What represents an identified and assessed risk of
material misstatement that requires special audit
consideration? - .....ANSWER ...✔✔ Significant risk
What is the impact on the amount of acceptable audit
risk if an auditor believes the chance of financial failure
of a client is high? - .....ANSWER ...✔✔ The
acceptable audit risk is reduced.
Which factor should lead an auditor to assess inherent
risk as high? - .....ANSWER ...✔✔ The account balance
consists of a large number of complex transactions.
Which factor would lead an auditor to assess client
business risk at a higher level? - .....ANSWER ...✔✔
The client's use of information technology is incompatible
across systems and processes.
An auditor determines overall materiality of $500,000
would be material to the income statement and
$1,000,000 would be material to the balance sheet.
Which amount would an auditor typically assess
performance materiality to be for this client? -
.....ANSWER ...✔✔ 75% of $500,000
