1. The statements below describe the interrelationship of audit risk components. Which is false ? a. There is an inverse

[answerhappygod]

1. The statements below describe the interrelationship of auditrisk components. Which is false ?
a. There is an inverse relationship between detection riskand the combined level of inherent and control risks
b. When an inherent and control risks are high, theacceptable level of detection risks needs to be low toreduce audit risk at an acceptably low level
c. When inherent and control risks are low, an auditor canaccept a higher detection risk and still reduce auditrisk to an acceptably low level
d. The assessed level of inherent and control risk can besufficiently low to eliminate the need for the auditor toperform any substantive procedures
2. When considering the factors that affect the risk ofmaterial misstatement, the auditor should consider?
I. The magnitude of misstatement that might occur
II. The likelihood of misstatement that might occur
III. The internal control weaknesses that might have someeffects on the financial statements.
a. I and II only
b. I and III only
c. II and III only
d. I, II and III
3. Which of the following quality control elements is mostclosely associated with the requirement to promotea culture of quality ?
a. Monitoring
b. Engagement performance
c. Leadership responsibilities for quality within thefirm
d. Human resources
4. Professional judgment is necessary for the conduct of anaudit. The auditor exercises professionaljudgment in making decisions about, EXCEPT :
a. Materiality and audit risk
b. The nature, timing and extent of audit procedures to beperformed in gathering audit evidence
c. Evaluating sufficiency and appropriateness of auditevidence
d. Applicable financial reporting framework
5. Which of the following does not relate to audit quality?
a. Independence
b. Due Diligence
c. Audit fees
d. Audit competency
6. The auditor’s risk assessment procedures should alwaysinclude the following, EXCEPT
a. Analytical procedures
b. Inquiries of management and others within the entity
c. Observation and inspection
d. Substantive test procedures and tests of controls