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Please answer Question 6- 10.Thank you.

(6) Based on the results of test of control, level of control risk from that originally planned. To achieve an that is substantially the same as the planned audit risk level, the au (a) Increase inherent risk (b) Increase materiality levels. (c) Decrease substantive (d) Decrease detection risk an auditor decides to increase the assessed overall audit risk level would: testing. k's automatic teller machine system (ATM) uses currency-dispensing m es to issue cash automatically to customers. ATM involves the use of interconnecting subsystems by data communication networks and databases. An important edit check in ATM is a validity check. A validity check tests: (a) (b) (c) (d) Identification numbers or transaction codes against those known to be authorised The characters in a field to assure that they are of the class that the field is supposed to contain. A numerical amount in a record to assure that it does not exceed some predetermined amount. The logical correctness of relationships among the values of data items on an input record and a file record. (8) A source document with an invalid number of hours worked for one week, e.g. 93 hours instead of 39, would best be detected by (a) Keypunching controls (b) A limit test in an edit run. (c) Hash total of hours worked. (d) Record count total. An auditor believes that there is substantial doubt about the ability of ABC Ltd to continue as a going concern for a reasonable period of time. In evaluating ABC Ltd's plans for dealing with the adverse effects of future conditions and events, the auditor would most likely consider, as a mitigating factor, ABC Ltd's plans to: (9) (a) Accelerate research and development projects related to future products. (b) Enhance the quality of existing product lines by investing in new manufacturing technology Purchase equipment and production facilities currently being leased. Negotiate reductions in interest rates on outstanding debt. (c) (d) (10) Which of the following most likely represents a significant deficiency in the internal control? (a) (b) (c) (d) The systems analyst reviews applications of data processing and maintains systems documentation. The control clerk establishes control over data received by the IT department and reconciles control totals after processing The systems programmer designs systems for computerised applications and maintains output controls. The accounts payable clerk prepares data for computer processing and enters the data into the computer

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