Exam 10: Develop Risk Response: Audit Strategy and Audit Program

CAS 300 explains that the overall audit strategy guides the development of the audit plan.When developing the overall audit strategy,what are the steps the auditor should carry out?

Key controls are controls

An example of an audit procedure that relates to the auditor's understanding of internal control is to

The auditor verifies the summarizing,accuracy,and posting of entries by performing

Which of the following audit tests is usually the least costly to perform?

A PA has designed an audit approach where she places maximum possible reliance on controls.This means that she will be

Which of the following audit tests is usually the most costly to perform?

Donna sees a large variation in the gross margin percentage as a result of analytical procedures she performed.This means that

A procedure designed to test for dollar errors or irregularities directly affecting the correctness of financial statement balances is a(n)

After finishing the procedures to obtain an understanding of internal control in an audit engagement,the auditor should perform tests of controls on

Which of the following areas is considered to have a high risk of fraud in the retail industry?

You are conducting the audit of a medium-sized company that has a chief accountant and three employees.Segregation of duties is excellent,with jobs allocated to provide maximum levels of controls.Segregation is supported by accounting software with user identification and passwords that limit functions to the appropriate jobs. Required: A)What type of audit approach would you recommend? Why? B)How would your answer change if the accounting department was organized on a job-sharing basis so that all employees did some of every task to keep the work more interesting? Why?

Cimco Forest is a client of your PA firm that has requested that the audit of its financial statements be completed 25 days after its year end.Given the time constraint,the auditor

If the auditor is not using tests of control,then

If no material fluctuations are found using analytical procedures and the auditor concludes that differences should not have occurred,