An auditor who is professionally skeptical will do which of the following? Question 31 options: Reasonable question the authenticity of documentation while accepting the documents as genuine unless there is reason to believe to the contrary Accept audit evidence without question even if it is contradictory "Where fraud risk is high, accept all information regardless of reliability" All of these answers are correct
Added by Paul H.
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Professional skepticism means an auditor maintains a questioning mind and critically assesses audit evidence, not accepting it at face value without sufficient verification. Show more…
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Performance of an analytical procedure requires the use of information produced by the entity being audited (IPE). Required: a. Whenever an auditor uses IPE in an audit procedure, the auditor must ensure that the information is reliable. According to auditing standards, when using IPE as audit evidence, what procedures should the auditor evaluate to determine whether the information is sufficient and appropriate for purposes of the audit? (You may select more than one answer. Single click the box with the question mark to produce a checkmark for correct answers and double click the box with the question mark to empty the box for wrong answers.) Check all that apply: - Determine the financial statement items or accounts and assertions affected. - Determine the nature, timing, and extent of the population to be tested. - Determine the overall purpose and specific objectives of the Audit Data Analytic. - Obtain audit evidence about the completeness and accuracy of the information. - Evaluate whether the evidence is sufficiently precise and detailed for the auditor's purposes. - Evaluate whether the preferred tools will work efficiently with the data.
Jennifer S.
21. Which of the following is not a consideration when the auditor is attempting to assess the inherent risk? A. Nature of the client's business. B. Existence of related parties. C. Frequency and intensity of top management review. D. Susceptibility to defalcation. 22. Inherent risk is reduced when the likelihood of defalcations is low. This would be true for an account such as: A. Property, plant and equipment. B. Held for trading securities. C. Cash. D. Accounts receivable. 23. Which of the following is an incorrect statement? A. Detection risk is a function of the effectiveness of an auditing procedure and its application. B. Detection risk arises partly from uncertainties that exist when the auditor does not examine 100 percent of the population. C. Detection risk arises partly because of other uncertainties that exist even if the auditor were to examine 100 percent of the population. D. Detection risk exists independently of the audit of the financial statements. 24. Which of the following pertains to detection risk? A. An entity's asset custodian and record-keeping function for cash are handled by one process owner. B. An entity operates in a highly complex business environment. C. An auditor uses substantive analytical procedures instead of tests of balances. D. None of the above. 25. Which of the following statements is correct concerning an auditor's assessment of control risk? A. Assessing control risk may be performed concurrently during an audit with obtaining an understanding of the entity's internal control. B. Evidence about the operation of internal control in prior audits may not be considered during the current year's assessment of control risk. C. The basis for an auditor's conclusions about the assessed level of control risk need not be documented unless control risk is assessed at the maximum level. D. The lower the assessed level of control risk, the less assurance the evidence must provide that the control procedures are operating effectively.
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