Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 9, Problem 1RQ
To determine
Identify the parts which involve the evaluation of risk.
Expert Solution & Answer
Explanation of Solution
Identify the parts which involve the evaluation of risk as follows:
Eight parts of the planning phase of an audit are,
- 1. Accept client and perform initial planning,
- 2. Understand the client’s business and industry,
- 3. Perform preliminary analytical procedures,
- 4. Set preliminary judgment of materiality and performance materiality,
- 5. Identify significant risks due to fraud or error,
- 6. Assess inherent risk,
- 7. Understand internal control and assess control risk, and
- 8. Finalize overall audit strategy and audit plan.
The evaluation of risk is an explicit component of 5th (significant risk) 6th (inherent risk) and 7th (control risk) parts.
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Students have asked these similar questions
In which stage of audit the audit program will be created ?
a.
Fieldwork
b.
Reporting
c.
Planning
d.
Followup
1. What are the objectives of Audit Planning?
2. Explain SIX (6) planning procedures.
6.
During the planning stage, an audit planning memo will consist of these four main steps:
i) Risk Assessment
ii) Approach
iii) Materiality
iv) Sampling
v) Procedures
Question 6 options:
a)
ii, iii, iv & v
b)
i, ii, iii & v
c)
i, ii, iii & iv
d)
All of the above
Chapter 9 Solutions
Auditing And Assurance Services
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Provide two examples of factors that might...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Prob. 14RQCh. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. 25.1MCQCh. 9 - Prob. 25.2MCQCh. 9 - Prob. 25.3MCQCh. 9 - Prob. 26.1MCQCh. 9 - Prob. 26.2MCQCh. 9 - Prob. 26.3MCQCh. 9 - Prob. 27.1MCQCh. 9 - Prob. 27.2MCQCh. 9 - Prob. 27.3MCQCh. 9 - Prob. 28.1MCQCh. 9 - Prob. 28.2MCQCh. 9 - Prob. 28.3MCQCh. 9 - Prob. 29DQPCh. 9 - Prob. 30DQPCh. 9 - Prob. 31DQPCh. 9 - Prob. 33DQPCh. 9 - Prob. 34DQPCh. 9 - Prob. 35DQPCh. 9 - Prob. 36DQPCh. 9 - Prob. 37DQPCh. 9 - Prob. 39C
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Similar questions
- Which of the following audit is a continuous process ? Risk Management Internal Audit Balance Sheet Preparation External Auditarrow_forwardChapter 8 introduced the eight parts of the planning phase of anaudit. Which part is the evaluation of materiality and risk?arrow_forwardWhich of the following is not one of the five key steps within the ERM process? a. Risk response b. Risk acceptance c. Risk monitoring d. Risk identificationarrow_forward
- 1. Why do you need to make pre - engagement activities before making an actual audit?arrow_forwardd) Name the four types of tests auditors normally perform in an audit after risk assessment is done.arrow_forwardDefine audit risk and describe how it can be broken down into the three separate components of the audit risk model to help assess and respond to such risks during the audit planning process.arrow_forward
- What are the six stages of an audit?arrow_forward3.What are the audit procedures for subsequent events and give examplesarrow_forwardABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate risks to an acceptable level is part of which component in the COSO Framework? a. Control environment b. Risk assessment c. Control activities d. Monitoringarrow_forward
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