CA Inter Risk Assessment and Internal Control — practice questions
30 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Inter Risk Assessment and Internal Control in the app →Audit risk is the product of the risk of material misstatement and:The risk of material misstatement at the assertion level consists of inherent risk and:The susceptibility of an assertion to a misstatement, before considering any related controls, is:The risk that a misstatement will not be prevented or detected on a timely basis by the entity's internal contThe risk that the auditor's procedures will not detect a misstatement that exists is:For a given level of audit risk, detection risk has a/an ___ relationship with the risk of material misstatemeIdentifying and assessing the risks of material misstatement is dealt with by Standard on Auditing (SA):The auditor's responses to assessed risks are dealt with by Standard on Auditing (SA):Internal control, as per SA 315, comprises how many interrelated components?The component of internal control that sets the tone of an organisation and the attitude of management towardsAudit procedures designed to evaluate the operating effectiveness of controls are called:Tracing a few transactions through the accounting system from start to finish is known as a:Assigning different people the responsibilities of authorising, recording and custody is the control principleA limitation common to any internal control system is the possibility of:Collusion among two or more persons can defeat internal controls, which is cited as an ___ of internal controlA risk that the auditor identifies and assesses as requiring special audit consideration is a:Materiality and performance materiality in planning and performing an audit are dealt with by SA:Risk assessment procedures by themselves do NOT provide sufficient appropriate audit evidence to:Inquiries of management, analytical procedures, and observation and inspection are examples of:Where controls are assessed as effective and tested, the auditor may ___ the extent of substantive procedures:Internal control is a process designed and effected by those charged with governance and management to provideThe component of internal control consisting of the policies and procedures that help ensure management directOngoing and separate evaluations to assess whether controls are operating as intended fall under:Higher assessed risk of material misstatement requires the auditor to accept a ___ detection risk:Human error in the operation of controls, such as a mistake in judgement, is best described as a/an:An understanding of the entity and its environment is obtained by the auditor mainly to:Substantive procedures comprise tests of details and:Even an effective system of internal control can provide only reasonable, not ___, assurance:The auditor's assessment of inherent and control risk together determines the:Controls relevant to the audit are primarily those that relate to the entity's: