Which phrase or term regarding materiality is used by the Supreme Court of the United States, and is NOT found in FASB Concepts Statements No. 2? - ANSWERSSignificantly altered the total mix of information available.
Which materiality does an auditor use when determining whether the financial st...
WGU D251 - Advanced Auditing Correct 100%
Which phrase or term regarding materiality is used by the Supreme Court of the United States, and is NOT found in FASB Concepts Statements No. 2? - ANSWERSSignificantly altered the total mix of information available.
Which materiality does an auditor use when determining whether the financial statements overall are materially correct? - ANSWERSPlanning Materiality.
Planning= Overall
What describes the misstatements identified throughout the audit that will be considered
at the end of the audit in determining whether the financial statements overall are materially correct? - ANSWERSPosting Materiality - Considered when coming to the close, or POSTING of the audit.
When materiality judgements change during the audit opinion formulation process, what
happens to previous audit decisions that were based on evidence obtained using the initial materiality setting? - ANSWERSThe auditor reassesses those previous audit decisions.
Which factor would result in control risk being assessed at a higher level? - ANSWERSThere is a lack of supervision of accounting personnel.
Which technique is used to analyze year-to-year comparisons of account balances? - ANSWERSTrend Analysis
Which terms describes the numerical depiction of the relationship between control risk, inherent risk, and detection risk? - ANSWERSAudit Risk Model
Which risk factor suggests a heightened level of risk of material misstatement? - ANSWERSHaving key personnel of a company depart.
What is the relationship between the risk of material misstatement and audit risk? - ANSWERSInverse
What is the typical range for the setting of audit risk? - ANSWERS1% to 5%
Which risk result would likely be achieved from using a 1% level of detection risk? - ANSWERSA low detection risk and a low audit risk.
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