When more persuasive audit evidence is needed regarding the effectiveness of a control, (a) it may be appropriate to increase the extent of testing of the control and reduce the extent of the degree of reliance on controls. (b) it may be appropriate to decrease the extent of testing of the control as well as the degree of reliance on controls. (c) it may be appropriate to decrease the extent of testing of the control and increase the extent of the degree of reliance on controls. (d) it may be appropriate to increase the extent of testing of the control as well as the degree of reliance on controls.

If the results from tests of controls demonstrate that the internal controls are operating effectively, how will the auditor assess the levels of control risk and detection risk? Question 11Answer a. The level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. b. The level of control risk will be assessed as higher. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. c. The auditor determines that the internal controls are operating effectively, the level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk. d. The level of control risk will be assessed as high. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk.

As a result of tests of controls, an auditor assessed control risk too low and decreased substantive testing. This assessment occurred because the true deviation rate in the population wasSelect one:a.More than the risk of assessing control risk too low, based on the auditor's sample.b.Less than the deviation rate in the auditor's sample.c.More than the deviation rate in the auditor's sample.d.Less than the risk of assessing control risk too low, based on the auditor's sample.

When obtaining an understanding of controls that are relevant to the audit, the auditor shall evaluate the design of those controls and determine whether they have been implemented, by performing procedures in addition to inquiry of the entity's personnel.Select one:TrueFalse

The likelihood of assessing control risk too high is the risk that the sample selected to test controlsSelect one:a.Does not support the tolerable misstatement for some or all of management's assertions.b.Contains proportionately fewer monetary errors or deviations from prescribed internal control policies or procedures than exist in the balance or class as a whole.c.Contains misstatements that could be material to the financial statements when aggregated with misstatements in other account balances or transaction classes.d.Does not support the auditor's planned assessed level of control risk when the true operating effectiveness of the control justifies such an assessment.

The auditor should consider whether the assessment of control risk is confirmedSelect one:a.Before the final audit program is completed.b.Upon completion of understanding of internal control.c.Upon the conclusion of the audit, based on the results of substantive procedures and other audit evidence obtained.d.Upon completion of tests of controls