Beruflich Dokumente
Kultur Dokumente
Raymond N. Johnson
Portland State University
Chapter Overview
Preliminary Audit Strategy, Planned Detection Risk, and Planned Emphasis on Audit Tests
Study Break
1. Which of the following is the correct representation of detection risk?
A. B. C. D. DR DR DR DR = = = = AP x CR AP x IR TD x AP TD x AR
C. DR = TD x AP
Study Break
2. Which of the following is not a step for assessing the risk of a material misstatement?
A. Evaluate the magnitude of potential misstatement B. Evaluate the likelihood of potential misstatement C. Evaluate who identified the potential misstatement D. Evaluate the type of potential misstatement C. Evaluate who identified the potential misstatement
Summary of Relationships
Special Considerations
Balance Sheet and Income Statement Accounts
Study Break
3. This type of test determines the fairness of significant financial statement assertions.
A. B. C. D. Tests of Controls Substantive Tests Inherent Tests None of the above
B. Substantive Tests
Study Break
4. This type of substantive test involves comparing plausible relationships among both financial and nonfinancial data.
A. B. C. D. Initial Procedures Substantive Analytical Procedures Tests of Details of Transactions Tests of Details of Balances
Study Break
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. B. C. D. Nature Timing Extent Staffing
C. Extent