How does the auditor's judgements about the risk of material misstatements affect the audit?
The knowledge, skill, and ability of personnel assigned to the engagement should be commensurate with the assessment of the level of risk of the engagement.
The auditor should exercise professional skepticism. This involves maintaining an attitude that includes a questioning mind and critical assessment of audit evidence.
Fraud risk factors that have control implications may limit the auditor's ability to assess control risk below the maximum and thus reduce substantive testing.
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In analysis of income, for purposes of determining a trend, extraordinary items should be included
Indicate whether the statement is true or false
A client is a computer that is designed to support processing from many remote computers and users.
Answer the following statement true (T) or false (F)
Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is A) a merchant of both hippos and Hippo Chow
B) a merchant of hippos, but not of Hippo Chow. C) a merchant of Hippo Chow, but not of hippos. D) not a merchant of either hippos or Hippo Chow.
A clothing retailer would use an island ad to
A. make a newspaper accountable for the sales generated by the ad. B. reduce overall costs of newspaper advertising. C. create high reproduction quality ads. D. break through the clutter typically found in newspapers. E. identify potential target markets.