Which of the following would an auditor do to consider misstatements that might occur in a business process?
A)review internal controls to ensure the controls are in place and operating effectively
B)understand what is likely to go wrong in a process
C)plan the audit to determine the nature,timing,and extent of evidence to gather
D)increase the amount of internal control testing in the risky accounts
E)increase the extent of analytical procedures in the risky accounts
F)both A and B
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

To consider misstatements that might occur in a business process, an auditor would need to understand what is likely to go wrong in the process (choice B) and plan the audit to determine the nature, timing, and extent of evidence to gather (choice C). Therefore, the auditor would do both (choice G). Reviewing internal controls (choice A) and increasing the amount of internal control testing (choice D) or analytical procedures (choice E) would be specific steps an auditor may take after considering potential misstatements, but they do not encompass the full process.

Which of the Following Would an Auditor Do to Consider