Question 1

Analytical procedures are used by auditors to evaluate their clients' financial information by studying plausible relationships among both financial and non-financial data.Explain how analytical procedures are used at the different stages of an audit.

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Question 2

Discuss the purpose and some common examples of profitability ratios.

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Question 3

Explain audit risk and the three components of the audit risk model.

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Question 4

Explain the audit approach used by an auditor when they assess control risk as high.

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Question 5

Audit risk is the risk that an auditor expresses an inappropriate audit opinion when a financial report is materially stated.Why is the concept of audit risk so important to auditors and what can they do to reduce to an acceptably low level?

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Question 6

Describe the profitability and liquidity approaches to measuring a client's performance.

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Question 7

Gaining an understanding of a client includes auditors learning how their clients measure their performance.How is this information used by auditors in audit planning and what are examples of non-financial performance measures commonly used by auditors?

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Quiz 4: Risk Assessment II