Escolar Documentos
Profissional Documentos
Cultura Documentos
William C. Boynton
California Polytechnic State
University at San Luis Obispo
Raymond N. Johnson
Portland State University
• DR = AP x TD so,
• DR = AR / (IR x CR)
Preliminary Audit Strategy, Planned
Detection Risk, and Planned Emphasis on
Audit Tests
Study Break
1. Which of the following is the
correct representation of
detection risk?
A. DR = AP x CR
B. DR = AP x IR
C. DR = TD x AP
D. DR = TD x AR
C. DR = TD x AP
Study Break
2. Which of the following is not a step for
assessing the risk of a material
misstatement?
A. Evaluate the magnitude of potential
misstatement
B. Evaluate the likelihood of potential
misstatement
C. Evaluate who identified the potential
misstatement
D. Evaluate the type of potential misstatement
• Timing
• Extent
• Staffing
Nature of Substantive Tests
Timing of Substantive Tests
• Prior to Balance Sheet Date
– Interim Date Risks
– Importance of Internal Controls
B. Substantive Tests
Study Break
4. This type of substantive test
involves comparing plausible
relationships among both financial
and nonfinancial data.
A. Initial Procedures
B. Substantive Analytical Procedures
C. Tests of Details of Transactions
D. Tests of Details of Balances
C. Extent