Question Details

Accounting Homework Help

Auditors are not required to communicate significant deficiencies to the audit committee and management. However, they must communicate material weaknesses to the audit committee and management.

True

False

Further audit procedures includes both tests of controls and substantive testing.

True

False

An accounting estimate has a low inherent risk.

True

False

The risk that an auditor will fail to detect a material misstatement with their audit procedures is referred to as:

Sampling risk.

Detection risk.

Nonsampling risk.

Inherent risk.

In considering the system of internal control the auditor is basically concerned with the structure providing reasonable assurance that:

Material misstatements will be prevented or detected.

Management cannot override the system.

Inherent risk is minimal.

Controls have not been circumvented by collusion.