There is a direct relationship between materiality level and the level of audit risk

Related MCQs

• Planning materiality may be taken at a lower figure than reporting materiality.
• Financial (attest) audit includes: i Examination and evaluaion of financial records ii Audit of financial systems and transactions iii Audit of intenal control and internal audit functions iv Evaluation of Compliance with applicable statutes and regulations
• If the desired overall assurance from audit is 95%, the inherent risk is 40% and the control risk is 50%, what would be the desired assurance from substantive tests
• These are performed if the audit team identifies a risk that could lead to potential material misstatement and where no reliance can be placed on mitigating controls to address the risk
• The three components of Audit Risk as per the risk model are
• The materiality thresholds depend on the ____ of accounts and their _____.
• Materiality is classified by
• For accounts prepared on cash basis, in respect of gross receipts/expenditure, materiality percentage would be
• Financial (attest) audit is primarily concerned with expression of audit opinion on a set of financial statements.
• what are the audit procedures commonly used to obtain audit assurance?