18. An auditor assesses control risk because it: (Points : 2) Determines whether

Question

18. An auditor assesses control risk because it: (Points : 2) Determines whether sampling risk is sufficiently low. Affects the level of detection risk the auditor may accept. Includes the aspects of nonsampling risk that are controllable. Indicates where inherent risk may be the greatest. Question 19.19. Which of the following best describes the principal advantage of the use of flowcharts in reviewing internal control? (Points : 2) Flowcharting is the most efficient means available for summarizing internal control. Audit documents are not complete unless they include flowcharts, as well as memoranda, on internal control. Flowcharts aid in the understanding of the sequence and relationships of entity activities and documents. Standard flowcharts are available and can be used quite effectively for describing most company internal operations.

Explanation / Answer

18. INDICATES WHERE THE INHERENT RISK MAY BE GREATEST.

19. FLOWCHARTING IS THE MOST EFFICIENT MEANS AVAILABLE FOR SUMMARIZING INTERNAL CONTROL.

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