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 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

For audits of financial statements of listed entities, and those other audit engagements, if any, for which the firm has determined that an engagement quality control review is required, the engagement partner shall:Select one:a.Discuss significant matters arising during the audit engagement, including those identified during the engagement quality control review, with the engagement quality control reviewer.b.Not date the auditor's report until the completion of the engagement quality control review.c.Discuss significant matters arising during the audit engagement, but not including those identified during the engagement quality control review, with the engagement quality control reviewerd.Determine that an engagement quality control reviewer has been appointed.

In evaluating the fair presentation of the financial statements the auditor should assess whether the aggregate of all identified uncorrected misstatements and projected errors is material.Group of answer choicesTrueFalse

Which is not true of the following statements?Group of answer choicesFraud is deliberate, errors are not.Some computer systems maintain no source documents.While the auditors may be able to identify potential opportunities for fraud to be perpetrated, it is difficult for the auditor to determine whether misstatement in judgment areas such as accounting estimates are caused by fraud or error.A deliberate failure to record transactions is not fraud

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.