10/18/23,
11:35
PM
Lesson
05
Quiz
Due
Oct
24
at
11:59pm
Points
10
Questions
10
Available
until
Oct
24
at
11:59pm
Time
Limit
None
Allowed
Attempts
Unlimited
Instructions
Some,
but
not
all,
of
the
responses
have
explanations
for
why
they
are
correct
or
incorrect.
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Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Question
1
1/1
pts
Correct!
®
https://canvas.asu.edu/courses/159839/quizzes/1199891
Which
of
the
following
statement
is
true
about
audit
risk?
A.
Audit
risk
is
risk
that
the
auditor
will
issue
a
clean
audit
opinion
on
financial
statement
that
are
materially
misstated
1/7
10/18/23,
11:35
PM
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
——
"
Nice
job!
Review
the
definition
of
audit
risk
on
page
70
of
the
text.
-
Now
get
back
to
work.
B.
Audit
risk
is
risk
that
the
audit
procedures
applied
by
the
auditors
are
unable
to
detect
any
material
misstatement
C.
Audit
risk
is
risk
that
financial
statements
might
be
misstated
due
to
lack
of
internal
controls
BothA&
C
Question
2
1/1
pts
What
does
an
unqualified
audit
report
convey?
A.
The
auditor
knows
that
financial
statements
are
free
from
any
material
misstatement;
however,
an
immaterial
misstatement
might
be
present
Correct!
®
B.
The
auditor
believes
that
financial
statements
are
free
from
material
misstatements
{
|
-
Nice
job!
Review
page
71
of
the
text
for
information
on
unqualified
-
reports.
Now
get
back
to
work.
C.
The
auditor
believes
that
financial
statements
are
free
from
any
misstatements
Both
B
&
C
https://canvas.asu.edu/courses/159839/quizzes/1199891
27
10/18/23,
11:35
PM
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Question
3
1/1
pts
Which
of
the
following
can
a
qualified
audit
report
convey?
Correct!
The
auditor
believes
that
financial
statements
contain
at
least
one
material
misstatement,
but
this
misstatement
is
not
pervasive
—
'
Nice
job!
Review
page
71
of
the
text
for
information
on
qualified
-
reports.
Now
get
back
to
work.
The
auditor
believes
that
financial
statements
do
not
contain
any
material
misstatement,
but
might
contain
an
immaterial
misstatement
The
auditor
believes
that
financial
statements
contain
pervasive
material
misstatement
that
would
affect
decisions
of
a
reasonable
investor
All
of
the
above
Question
4
1/1
pts
An
auditor
is
likely
to
issue
an
adverse
audit
report
when
the
auditor
concludes
which
of
the
following?
The
auditor
concludes
that
a
specific
part
of
the
financial
statement
is
misstated
(e.g.,
accounts
payable
balance)
and
the
client
refuses
to
correct
the
misstatement
https://canvas.asu.edu/courses/159839/quizzes/1199891
3/7
10/18/23,
11:35
PM
Correctl
Correct!
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
®
The
auditor
concludes
that
financial
statements
contain
at
least
one
material
misstatement
that
is
pervasive
and
the
client
refuses
to
correct
the
misstatement
——
"
Nice
job!
Review
page
71
of
the
text
for
information
on
adverse
-
reports.
Now
get
back
to
work.
The
auditor
concludes
that
the
client's
management
is
adverse
toward
auditors
None
of
the
above
Question
5
1/1
pts
In
which
of
the
following
situations
is
the
auditor
likely
to
issue
an
unqualified
audit
report?
The
auditor
believes
that
financial
statements
have
a
non-pervasive
material
misstatement
in
a
specific
account
The
auditor
believes
that
financial
statements
have
a
pervasive
material
misstatement
in
a
specific
account
®
The
auditor
believes
that
financial
statements
don’t
have
any
material
misstatements
"
Nice
job!
Review
page
71
of
the
text
for
information
on
when
an
!
'
auditor
would
issue
an
unqualified
audit
report.
Now
get
back
to
-
work.
e
https://canvas.asu.edu/courses/159839/quizzes/1199891
417
10/18/23,
11:35
PM
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
None
of
the
above
Question
6
171
pts
Which
of
the
following
is
not
part
of
the
audit
risk
model
formula®
Inherent
risk
Control
risk
Correct!
)
Business
risk
'
Nice
job!
Review
the
audit
risk
formula
on
pages
73-74
of
the
text.
-
Now
get
back
to
work.
Detection
risk
Question
7
1/1
pts
Why
do
auditors
have
to
accept
some
audit
risk?
Auditors
can
only
provide
reasonable
assurance
Inherent
risk
and
control
risk
are
beyond
the
auditor
control
Inherent
risk
and
control
risk
are
never
zero
Correct!
)
All
of
the
above
Nice
job!
Review
the
audit
risk
formula
and
why
auditors
must
accept
-
some
audit
risk
on
page
74
of
the
text.
Now
get
back
to
work.
https://canvas.asu.edu/courses/159839/quizzes/1199891
5/7
10/18/23,
11:35
PM
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Question
8
1/1
pts
Which
of
the
following
processes
provides
the
primary
insights
in
assessing
the
initial
control
risk
level
(i.e.,
Planned
Assessed
Control
Risk)?
A.
Testing
operating
effectiveness
of
controls
B.
Testing
design
of
controls
C.
Testing
implementation
of
controls
Correctl
)
BothB&C
—
|
Nice
job!
Review
pages
76-80
of
the
text
for
information
on
control
-
risk
and
how
to
assess
the
planned
assessed
control
risk.
Now
get
-
back
to
work.
Question
9
171
pts
Which
of
the
following
situations
likely
indicates
that
the
inherent
risk
for
the
year
under
audit
has
increased
from
the
prior
year?
Correctl
)
Audit
client’s
accounts
involve
more
complex
transactions
Nice
job!
Because
the
transactions
are
more
complex,
there
is
a
greater
inherent
risk
of
missing
some
material
information.
Review
pages
75-76
of
the
text
for
information
on
inherent
risk.
Now
get
back
|
to
work.
Several
of
the
audit
team
members
who
were
experienced
on
this
audit
will
be
replaced
by
new
team
members
https://canvas.asu.edu/courses/159839/quizzes/1199891
6/7
10/18/23,
11:35
PM
Lesson
05
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Audit
client’s
controls
have
changed
during
the
year
under
audit
All
of
the
above
Question
10
11/1
pts
Which
of
the
following
processes
provide
the
most
thorough
insights
for
assessing
control
risk?
Correct!
)
A.
Testing
operating
effectiveness
of
controls
Nice
job!
Recall
from
page
79
of
the
text
that
operating
effectiveness
of
testing
is
much
more
thorough
for
testing
controls
than
the
initial
control
risk
assessment
(consisting
of
testing
the
design
and
implementation).
Now
get
back
to
work.
e
————————
B.
Testing
design
of
controls
C.
Testing
implementation
of
controls
Both
B
&
C
Quiz
Score:
10
out
of
10
https://canvas.asu.edu/courses/159839/quizzes/1199891
717
