ACC/403 ACC403 ACC 403 WEEK 6 QUIZ

Auditors generally allocate the preliminary judgment about materiality to the:

The risk that audit evidence for a segment will fail to detect misstatements exceeding performance materiality levels is:

If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:

Why do auditors establish a preliminary judgment about materiality?

The scope paragraph of the standard unqualified auditor's report states that "… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement." What type of assurance is given?

As the acceptable level of detection risk increases, an auditor may change the:

________ misstatements are those where the auditor can determine the amount of the misstatement in the account.

If an auditor establishes a relatively high level for materiality, then the auditor will:

If planned detection risk is reduced, the amount of evidence the auditor accumulates will:

Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.

When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:

Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:

To what extent do auditors typically rely on internal controls of their public company clients?

Inherent risk and control risk:

The measurement of the auditor's assessment of the likelihood that there are material misstatements due to error or fraud in a segment before considering the effectiveness of internal controls is defined as: