Control risk is ________.
A) the probability that a material misstatement could occur and not be detected by the
auditor's audit procedures
B) the risk that the auditor will not be able to complete the audit on a timely basis
C) the risk that the auditor will not properly control the staff on the audit engagement
D) the probability that a material misstatement could occur and not be prevented or
detected by the company's internal control policies and procedures
D) the probability that a material misstatement could occur and not be prevented or
detected by the company's internal control policies and procedures
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When planning the audit related to stockholders' equity transactions, the auditor is not required to perform preliminary analytical procedures
a. True b. False Indicate whether the statement is true or false
A decrease in accounts receivable during a period indicates that a firm collected more ____________________ as the amount of revenues included in net income
Fill in the blank(s) with correct word
The notion of ________, an ethical system, is similar to Adam Smith's concept of the invisible hand in business.
A. egoism B. utilitarianism C. humanitarianism D. relativism E. universalism
For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity.
A. Issued bonds payable for cash. B. Issued stock for cash. C. Paid cash dividends. D. Sold equipment for cash. E. Purchases of land for cash. F. Purchased land in exchange for a note payable. G. Received cash dividends from investments in trading securities. H. Collected accounts receivable from customers. I. Paid wages to employees. J. Received interest from investments in trading securities.