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

Related MCQs

• 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
• The three levels of substantive procedures that can be performed in decreasing order of assurance required are:
• what are the audit procedures commonly used to obtain audit assurance?
• This financial audit objective directly tests for potential overstatement of assets and liabilities
• 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 extent of audit procedures and the the level of assurance required are
• The three components of Audit Risk as per the risk model are
• Transaction audit is linked to a specific assurance on an individual set of financial Statements in a particular year
• These are Performed if the audit team plans to take assurance from mitigating controls or from other controls .
• Financial (attest) audit is primarily concerned with expression of audit opinion on a set of financial statements.