Following Are a Number of Items That May Have an Impact

question 37

Short Answer

Following are a number of items that may have an impact on one of the components of audit risk.
REQUIRED: For each of the following, indicate the risk component that is directly affected. More than one selection may be correct. Use the following code:I:Inherent Risk
C:Control Risk
A:Analytical Procedures Risk
D:Tests of Details Risk
1.Fixed assets consist primarily of capitalized leasehold items.
2.Policies and procedures in the cash collection area appear ineffective.
3.Evidence from external sources will be obtained in testing the sales cycle.
4.The CPA firm has a sound system of quality controls.
5.In the prior year, numerous errors were detected in the account in question.
6.Limited procedures to obtain an understanding are planned.
7.The auditor has decided to consult a specialist.
8.An internal audit function exists and answers directly to the president.
9.Physical security over blank documents and accounting records is weak.
10.Extensive tests of details of balances are planned.
11.The client is in the savings and loan industry.
12.Working capital levels have declined over the past year.
13.A highly experienced audit staff has been assigned to the engagement.
14.The auditor is planning extensive compliance testing.
15.Management turnovers have been considerable this year.

---

Definitions:

Service Utility

The added value or benefit that a service provides to its customers, enhancing customer satisfaction.

Digital Marketspace

An online environment where products, services, and information are exchanged.

The General

Often refers to a leader or an individual holding a high rank in the military; contextually, it can also refer to someone of great importance or stature in a specific field.

Internet Users

Individuals who utilize the internet to access information, communicate with others, or perform various other activities online.