Which of the following is not particularly indicative of a program’s exposure to risk: Engagement of...

Which of the following is not particularly indicative of a program’s exposure to risk:

Engagement of new independent auditors
Recently installed and untested computer systems
Past inefficiencies as revealed in previous audits
Ineffective administration

Expert Solution

Correct Answer:

Option( 4) is correct statement that is ineffective administrative. Because having ineffective administration work will be completed slowly in the organization,but it will not indicate any exposure of risk.

Incorrect answers:

Option(1) is incorrect statement that is the engangement of new independent auditor is exposure to risk because the new auditor does not have good experience of auditing so it will affect the fairness of the financial statement.

Option(2) is incorrect answer because recently installed and untested computer system will chances of loosing the data or may corrupt important data, so there is a exposure of risk of using such computer system.

Option(3) is incorrect answer because past inefficiencies revealed in previous audit may be existed into the current auditing report that may affect the fairness of the auditing report. so there is a exist ance of risk

So answer is option (4)

ekkarill92 answered 2 years ago

Write about Engagement letter and its importance? What is Engagement risk?

Briefly describe the following items: 1.Transaction exposure, economic exposure and translation exposure. Which exposure is more...

Briefly describe the following items: 1.Transaction exposure, economic exposure and translation exposure. Which exposure is more relevant to multinational corporation? Please explain 2.Purchasing power parity and Interest rate parity, and their linkage.

1. The presence of which hormone in a woman's blood is indicative of pregnancy (and is...

1. The presence of which hormone in a woman's blood is indicative of pregnancy (and is tested for in a pregnancy test?) What is the function of this hormone? 2. During menstruation, a large number of leukocytes are lost along with the endometrial tissues and bloody fluid. Several hypothesis have been proposed as to the purpose of this phenomenon. Propose a hypothesis of your own. 3. Explain how the drug sildenafil (Viagra, or Cialis) acts to facilitate erection for males...

1. Draw an exposure diagram to illustrate a firm’s exposure to interest rate risk if the...

1. Draw an exposure diagram to illustrate a firm’s exposure to interest rate risk if the firm is going to borrow $10m six months from today. Assume the loan will be a one-year loan with all interest paid at the end of the year. Graph the relation between the firms interest costs and interest rates. Also graph the relation between the firm’s profit and interest rates (assuming that higher interest costs cannot be passed on the consumers). 2.Draw an exposure...

Characterize the main risk exposure of the following banking/FI transactions by choosing one of the following,...

Characterize the main risk exposure of the following banking/FI transactions by choosing one of the following, and the rational behind your choice. (Note: one or more of the 10 transactions listed below could have the same risk. Please do not answer in one or two words such as credit risk or systematic risk, etc. this is not enough, you need to explain why this risk is applicable). Credit risk Interest rate risk Off balance sheet risk Foreign exchange risk Liquidity...

Avoiding your exposure to tobacco in the following form will result in significantly reduced risk of...

Avoiding your exposure to tobacco in the following form will result in significantly reduced risk of cardiovascular disease. 1. cigarettes 2. smokeless tobacco 3. secondhand smoke 4. all answers choices are correct

Write about Engagement letter and its importance? What is Engagement risk? When an Auditor finds misstatements...

Write about Engagement letter and its importance? What is Engagement risk? When an Auditor finds misstatements in entities financial statements which may be the result of fraudulent act, what should be the role of an auditor under that situation?

Which of the following is an example of economic exposure but not an example of transaction...

Which of the following is an example of economic exposure but not an example of transaction exposure? A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables An increase in the pound's value increases a U.S. firm's cost of British pound payables. An increase in the dollar's value impacts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers. A decrease in the Swiss franc's value decreases the...

Elements a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship b. Assessed Inherent Risk...

Elements a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship b. Assessed Inherent Risk and Planned Detection Risk Inverse Direct No Relationship c. Materiality and Amount of Substantive Evidence Needed Inverse Direct No Relationship d. Assessed Inherent Risk and Assessed Control Risk Inverse Direct No Relationship e. Acceptable Audit Risk and Assessed Control Risk Inverse Direct No Relationship f. Amount of Substantive Evidence collected and Achieved Detection Risk Inverse Direct No Relationship g. Actual Inherent Risk and Actual...

what is the difference between audit risk and engagement risk? Accounting Audit. a couple of paragraphs...

what is the difference between audit risk and engagement risk? Accounting Audit. a couple of paragraphs explain the occurrence and completeness assertions? and how does failure to meet each of those two assertions affect the financial statements? these are two of the eight management assertions. Accounting auditing list the three objectives of internal control and the five components of internal control and a very brief description of the five components. What are the management assertion and its definitions?

Question