Which statement is incorrect regarding analytical procedures?Select one:a.When comparison of those expectations with recorded amounts or ratios developed from recorded amounts yields unusual or unexpected relationships, the auditor considers those results in identifying risks of material misstatement.b.Analytical procedures may be helpful in identifying the existence of unusual transactions or events, and amounts, ratios, and trends that might indicate matters that have financial statement and audit implications.c.When such analytical procedures use data aggregated at a high level (which is often the situation), the results of those analytical procedures provide a clear-cut indication about whether a material misstatement may exist.d.In performing analytical procedures as risk assessment procedures, the auditor develops expectations about plausible relationships that are reasonably expected to exist.

Which is not true of the following statements?Group of answer choicesDiscovery of fraudulent transactions depends on the preparation and skill of the auditorsThe risk of the auditor not detecting a material misstatement resulting from management fraud is greater than for employee fraud,The discovery of a material misstatement of the financial statements resulting from fraud does not, in itself, indicate a failure tocomply with PSAsThe risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatementresulting from error

A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because: A. an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud B. the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial report taken as a whole. C. the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial report. D. audit procedures that are effective for detecting an error may be ineffective for fraud that is concealed through collusion

Which statement is incorrect regarding the discussion among the engagement team about the susceptibility of the entity's financial statements to material misstatements?Select one:a.The objective of this discussion is for members of the engagement team to gain a better understanding of the potential for material misstatements of the financial statements resulting from fraud or error in the specific areas assigned to them, and to understand how the results of the audit procedures that they perform may affect other aspects of the audit.b.The discussion provides an opportunity for more experienced engagement team members, including the engagement partner, to share their insights based on their knowledge of the entity, and for the team members to exchange information about the business risks.c.The members of the engagement team should discuss the susceptibility of the entity's financial statements to material misstatements.d.All the team members should have a comprehensive knowledge of all aspects of the audit.

Which statement is incorrect regarding significant risks that require special audit consideration?Select one:a.The auditor should determine which of the risks identified are, in the auditor's judgment, risks that require special audit consideration.b.The auditor excludes the effect of identified controls related to the risk to determine whether the nature of the risk, the likely magnitude of the potential misstatement including the possibility that the risk may give rise to multiple misstatements, and the likelihood of the risk occurring are such that they require special audit consideration.c.Routine, non-complex transactions that are subject to systematic processing are more likely to give rise to significant risks because they have higher inherent risks.d.Significant risks are often derived from business risks that may result in a material misstatement.Clear my choice

The risk that the assertion contains material misstatements that, when aggregated with misstatements in other assertions, could make the entire financial statements materially misstated is:Select one:a.Inherent riskb.Detection riskc.Individual audit riskd.Control risk