If auditors identify risk factors that indicate that the going concern assumption is in doubt, they will undertake procedures to gather evidence regarding each risk factor. Group of answer choices True False

The auditor has a responsibility of identifying or assessing all business risks because not all business risks give rise to risks of material misstatement.Select one:TrueFalse

Analytical procedures used in planning an audit should focus onSelect one:a.Providing assurance that potential material misstatements will be identified.b.Assessing the adequacy of the available evidential matter.c.Enhancing the auditor's understanding of the client's business.d.Reducing the scope of tests of controls and substantive tests.

Relevant audit evidence may be obtained through a combination of inquiries and other risk assessment procedures. Thus, inquiries need not be corroborated.Select one:TrueFalse

The auditor should perform the following risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control, except:Select one:a.Inquiries of the entity's external legal counsel or of valuation experts that the entity has used.b.Observation and inspection.c.Inquiries of management and others within the entity.d.Analytical procedures.

When preparing the audit plan, the auditor must ensure that they acquired significant understanding of the entity, its environment, and its internal controls.Group of answer choicesTrueFalse