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NEW QUESTION: 1
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 2
When an auditor increases the assessed level of control risk because certain control activities were
determined to be ineffective, the auditor would most likely increase the:
A. Level of inherent risk.
B. Extent of tests of details.
C. Level of detection risk.
D. Extent of tests of controls.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. As the assessed level of control risk increases, the acceptable level of detection risk
for financial statement assertions decreases. To attain a decreased level of detection risk, greater
assurance is needed from substantive tests. Increasing the extent of tests will provide greater assurance.
Choice "A" is incorrect. Tests of controls are used to assess the level of control risk. Once such
assessment is made, there is no need to perform further tests of controls.
Choice "B" is incorrect. As the assessed level of control risk increases, the acceptable level of detection
risk decreases. In this way, the auditor can keep total audit risk to an acceptable level.
Choice "D" is incorrect. Inherent risk is based on the nature of the assertion and cannot be changed.
NEW QUESTION: 3
Reviewing the Rule Base, you see that ________ is responsible for the client authentication failure.
Exhibit:
Checkpoint 156-215.77 Exam
Exhibit:
A. Rule 8
B. Rule 4
C. Rule 7
D. Rule 5
Answer: B
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