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NEW QUESTION: 1
While planning an audit, an assessment of risk should be made to provide:
A. reasonable assurance that all items will be covered by the audit.
B. definite assurance that material items will be covered during the audit work.
C. sufficient assurance that all items will be covered during the audit work.
D. reasonable assurance that the audit will cover material items.
The ISACA IS Auditing Guideline G15 on planning the IS audit states, 'An assessment of risk should be made to provide reasonable assurance that material items will be adequately covered during the audit work. This assessment should identify areas with a relatively high risk of the existence of material problems.' Definite assurance that material items will be covered during the audit work is an impractical proposition. Reasonable assurance that all items will be covered during the audit work is not the correct answer, as material items need to be covered, not all items.
NEW QUESTION: 2
Section A (1 Mark)
A bank is considering making a loan to Ram Kapoor. Ram has a gross salary per month of Rs40500 but has take-home pay of Rs27500 per month. What aspect of evaluating a consumer loan application is this fact most concerned with?
A. Character and purpose
B. Income level
C. Pyramiding of debt
D. Deposit balance
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