Which of the following statements is most correct regarding the independent audi

Question

Which of the following statements is most correct regarding the independent auditor's reliance on the tests of controls performed by the internal auditors to reduce their substantive testing?

The term "materiality" as used in auditing is best described as the

Prior to accepting an audit client an auditor has a professional obligation to

Which of the following best represents financial statement fraud?

Sampling risk is the risk that

Control risk that is assessed excessively high (i.e. the auditor believes control risk is high when in reality it is moderate or low) leads to:

The purchasing process consists of each of the following phases except

1-The independent auditor must obtain assurance of the independence of the internal auditors but need not test their work.

Explanation / Answer

Answers: (a) 4-The independent auditor must evaluate the competency and objectivity of the internal auditors and must test a sample of the work of the internal auditors in order to rely upon their work.

(b) 2-amount of misstatement on the financial statements that would influence a decision maker.

(c) 1-contact the predecessor auditor

(d) 4-The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization

(e) 4-the sample will not contain characteristics representative of the population such that inferences made about that population will be incorrect

(f) 3-reduced substantive testing

(g) 4-cash receipts

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