When an auditor increases the risk of material misstatement because certain control procedures were determined to be ineffective, the auditor would most likely increase the Answer [removed] Extent of tests of details. [removed] Levels of inherent risk. [removed] Extent of tests of controls. [removed] Level of detection risk. In the consideration of internal control, the auditor is basically concerned that internal control provides reasonable assurance that Answer [removed] Controls have not been circumvented by collusion. [removed] Misstatements have been prevented or detected. [removed] Operational efficiency has been achieved in accordance with management plans. [removed] Management cannot override controls. Which of the following statements concerning audit evidence is true? Answer [removed] A client’s accounting data can be sufficient audit evidence to support the financial statements. [removed] To be competent, audit evidence should be either persuasive or relevant, but it need not be both [removed] The measure of the validity of audit evidence lies in the auditor’s judgment. [removed] The difficulty and expense of obtaining audit evidence concerning an account balance is a valid basis for omitting the test Which of the following is not an objective of a well-designed system of internal control? Answer [removed] Accurate reliable financial statements [removed] Safeguarding of assets. [removed] Adherence with applicable laws and regulations. [removed] Maintaining proper segregation of duties The ultimate purpose of assessing control risk is to contribute to the auditor’s evaluation of the risk that Answer [removed] Entity policies may be inappropriately overridden by senior management. [removed] Specified controls requiring segregation of duties may be circumvented by collusion. [removed] Tests of controls may fail to identify procedures relevant to assertions. [removed] Material misstatements may exist in the financial statements Although the quantity and content of audit working papers vary with each particular engagement, an auditor's permanent files most likely include Answer [removed] Schedules that support the current year’s adjusting entries. [removed] Prior years’ accounts receivable confirmations that were classified as exceptions. [removed] Documentation indicating that the audit work was adequately planned and supervised. [removed] Analyses of capital stock and other owners’ equity accounts. Although the quantity and content of audit working papers vary with each particular engagement, an auditor's permanent files most likely include Answer [removed] Schedules that support the current year’s adjusting entries. [removed] Prior years’ accounts receivable confirmations that were classified as exceptions. [removed] Documentation indicating that the audit work was adequately planned and supervised. [removed] Analyses of capital stock and other owners’ equity accounts. Although the quantity an.