Audit Planning and Risk Assessment Flashcards
7 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Audit Planning and Risk Assessment flashcards as text
Which factor MOST increases inherent risk in a Scope 3 Category 1 (purchased goods and services) inventory?
Answer: Heavy reliance on spend-based emission factors and estimates
Spend-based methods depend on averaged factors and estimates, which brings more uncertainty and judgment and so higher inherent risk.
A verifier sets a lower materiality threshold for a specific emission source than for the overall inventory. What is this practice MOST similar to?
Answer: Setting performance (or specific) materiality for a sensitive area
A lower threshold for particular sources or sensitive areas gives more precision where users care most or where errors could add up.
During engagement acceptance, which factor would MOST likely cause a verification body to decline the engagement?
Answer: The verification body has no competent personnel for the client's sector and cannot get them
Verification bodies must accept only engagements they have the competence and resources to perform properly.
What is the main purpose of a data trail (audit trail) review during planning?
Answer: To understand how GHG data flows from source measurement to the reported total and where errors could enter
Mapping the data flow shows the points where transfers, calculations, or aggregations could introduce misstatements.
A client reports emissions under a mandatory program with a fixed verification deadline, but key metering data won't be ready until two weeks before that deadline. How should the verifier respond in planning?
Answer: Plan interim procedures on available data and schedule focused testing when the metering data arrives
Good planning handles timing limits by doing interim work and saving time for testing critical data once it is available.
Which characteristic is considered a fraud risk indicator in a carbon audit?
Answer: Management pay tied directly to reported emission reductions
Incentives such as pay tied to emission targets create pressure that can lead to intentional misstatement.
Why does a verifier get an understanding of the client's GHG information system and controls during planning?
Answer: To assess control risk and decide whether to rely on controls or rely more on substantive testing
Knowing the controls lets the verifier assess control risk and choose the right mix of control and substantive testing.