Chapter 7 Planning the Audit Identifying and Responding to the Risks of Material Misstatement答案

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1、Chapter7:PlanningtheAudit:IdentifyingandRespondingtotheRisksofMaterialMisstatementKey 1. Materialityrelatestothesignificanceorimportanceofanitem. TRUE 2. Auditorsandmanagementshouldagreeonwhatisconsideredmaterial. FALSE 3. Clearlytrivialandnotmaterialaretermsthatcanbeusedintercha

2、ngeably. FALSE 4. Auditorsneedtochoosematerialityamountscarefullybecauseonceamaterialityjudgmenthasbeenmade,itcannotberevised. FALSE 5. Asdetectionriskincreases,theamountofevidenceanauditorneedstoobtaindecreases. TRUE 6. Whenbusinessriskislow,theauditordoesnothaveahighconcernthat

3、abouttheabilityoftheorganization tooperateefficiently. TRUE 7. Onlypubliccompanieshavetobeconcernedwithbusinessrisk. FALSE 8. Touringacompany’splantoffersmuchinsightintopotentialauditissues. TRUE 9. Whenasuccessorauditorcontactsacompany’spreviousauditor,successorauditormightobtai

4、ninformationrelatedtoclientmanagement’sintegrity. TRUE 10. Newsmediaandwebsearchescanprovideusefulinformationrelatedtoclientmanagement’sintegrityandtheriskofmaterialmisstatementinthefinancialstatements. TRUE 11. LEXISisapublicdatabasewheretheexistenceoflegalproceedingsagainstacom

5、panyorkeymembersofthecompanycanbefound. TRUE 12. Thepurposeoftheauditor‘sconsiderationoftheeffectivenessofinternalcontrolsistodeterminethenature,extentandtimingofsubstantivetesting. TRUE 13. Trendanalysisdealswiththerelationshipbetweentwoormoreaccounts. FALSE 14. Onepotentiallimi

6、tationtousingindustrydatainpreliminaryanalyticalproceduresisthatthedatafromtheclientmaynotbedirectlycomparabletothedataoftheindustry. TRUE 15. Brainstormingsessionsshouldbeledbytheengagementteam. FALSE 16. Thereareguidelinesthatcanbefollowedinbrainstormingsessionstopromoteproduct

7、ivityandcreativity. TRUE 17. Theusuallengthofabrainstormingsessionisaboutfourhours. FALSE 18. Ifdetectionriskislow,theauditorismorewillingtotakeahigherriskofthesubstantiveauditproceduresnotdetectingamaterialmisstatement. FALSE 19. Detectionriskismeasuredonascaleof0%to5%. FALSE 20

8、. Ariskofmaterialmisstatementof100%indic