Exam 4 Quiz Question 1 (10 points) Saved The major components of internal control include all of the following, except: Question 1 options: control activities. internal auditing. risk assessment. the control environment. Question 2 (10 points) Saved Which is most likely when the assessed level of control risk increases? Question 2 options: Use larger sample sizes for substantive procedures. Perform substantive procedures directed inside the entity rather than tests directed toward parties outside the entity. Change from performing substantive procedures at year-end to an interim date. Use the maximum number of dual purpose tests. Question 3 (10 points) Saved On financial statement audits, it is required that the auditors obtain an understanding of internal control, including: Question 3 options: whether it has been implemented (placed in operation). its ability to provide reasonable assurance. performing tests of controls for all material controls. its operating effectiveness. Question 4 (10 points) Saved When performing tests of controls over authorization of cash receipts, which of the following sampling methods would be most appropriate? Question 4 options: Attributes Variables Ratio Stratified Question 5 (10 points) Saved Which of the following is generally not true about statistical sampling as compared to nonstatistical sampling? Question 5 options: Statistical samples are more representative of the population. Statistical sample plans involve additional costs of evaluation. Statistical sampling allows a more objective evaluation of sample results. Statistical sampling may assist the auditors in designing more efficient samples. Question 6 (10 points) Saved The auditor using nonstatistical attributes sampling, but who nevertheless has chosen the sample in conformity with random selection procedures: Question 6 options: will have to use discovery sampling techniques to evaluate the results. should compare the deviation rate of the sample to the tolerable rate. has committed a nonsampling error. need not consider the risk of assessing control risk too low. Question 7 (10 points) Saved A control deficiency that is less severe than a material weakness, but important enough to merit attention by those responsible for oversight of the company’s financial reporting is referred to as a(n): Question 7 options: reportable deficiency. control deficiency. significant deficiency. inherent limitation. Question 8 (10 points) Saved Which statement is correct concerning the relevance of various types of controls to a financial statement audit? Question 8 options: All controls are ordinarily relevant to an audit. An auditor may ordinarily ignore the consideration of controls when a substantive audit approach is used. Controls over the reliability of financial reporting are ordinarily most directly relevant to an audit, but other controls may also be relevant. Controls over safeguarding assets and liabilities are of primary importance, while controls over the reliability of financial reporting may also be relevant. Question 9 (10 points) Saved If the projected misstatement in a nonstatistical sampling is $8,000, while the tolerable misstatement is $9,000, what would an auditor likely conclude? Question 9 options: Since the projected misstatement is less than the tolerable misstatement, the account is not misstated. The risk is high that the account is materially misstated. The analysis has been improperly performed since the projected misstatement is unequal to the tolerable misstatement. Since the projected misstatement is less than the tolerable misstatement, the account is misstated. Question 10 (10 points) Saved Which of the following may be used to reduce the risk of nonsampling errors? Question 10 options: Using statistical sampling techniques Adequately planning audit samples Stratifying audit samples Increasing the size of audit samples Submit Quiz10 of 10 questions saved ORDER THIS PAPER OR A SIMILAR ONE WITH PRO WRITING TUTORS AND GET AN AMAZING DISCOUNT"