Question 1

A client currently being audited has an inventory with a historical cost of $1,450,000 and an NRV (net realizable value) of $1,200,000.What is the correct value of the inventory, and why?

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The answer of A client currently being audited has an...

Question 2

A client has 100 customers constituting a total accounts receivable balance of $2 million.Twenty of the client's customers currently have balances over $50,000, with the remainder having balances less than this amount.If auditors decide to send confirmations to the twenty customers with balances of at least $50,000, what percentage of the total accounts receivable will the auditor ultimately audit?

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Question 3

If the client has well-designed, implemented, and documented controls over the preparation of _______, then an appropriate risk response is required to test the operating effectiveness of the controls.

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The answer of If the client has well-designed, implemented, and...

Question 4

Substantive tests of details to test the _______ assertion for sales transactions are performed at year-end.

Accepted Answer

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Question 5

An auditor established a $60,000 tolerable misstatement for an asset with an account balance of $1,000,000.The auditor selected a sample of every twentieth item from the population of 1,000 items that represented the asset account balance and discovered overstatements of $3,700 and understatements of $200.Under these circumstances, what would the auditor most likely would conclude?

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The answer of An auditor established a $60,000 tolerable misstatement...

Question 6

The auditor's tests supported by reliable and relevant data in electronic form make the choice of _______ an efficient approach.

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Question 7

Briefly discuss and explain the relationship between the timing of audit procedures and the risk of material misstatement.

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Question 8

Briefly discuss the two factors that affect the auditor's risk response at the financial statement level.

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Quiz 9: Risk Responseperforming Substantive Procedures