Suppose that you have been appointed to the financial report audit of Kent Ltd as an independent auditor. You are expected to:   Select one:a. Make a limited examination of ABC's accounting and business records. b. Express an opinion as to whether the financial report is prepared in accordance with an applicable financial reporting framework.c. Provide an opinion as to the attractiveness of ABC for future growth. d. Endorse the 100% correctness of ABC's financial report

The purpose of an audit is to A. provide financial statement users with an opinion by an independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework B. provide internal auditors with an opinion by the external auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework C. provide absolute assurance that the financial statements conform to Generally Accepted Accounting Principles (GAAP) D. help management ensure yearly bonuses will be received

Which of the following engagements is most likely to be considered an operational audit? The auditor determines whether the organization is following provisions of laws and regulations. The auditor examines information presented in an entity’s financial statements to determine whether the financial statements are presented fairly in accordance with the applicable financial reporting framework. The auditor evaluates the organization’s efficiency in processing payments. The auditor assists the client in preparation of financial statements.

In the normal course of performing their responsibilities,auditors often conduct audits or reviews of the following:1. Federal income tax returns of an officer of the corporation to determine whether heor she has included all taxable income in his or her return.2. Financial statements for use by stockholders when there is an internal audit staff.3. A bond indenture agreement to make sure a company is following all requirementsof the contract.4. Internal controls at a casino to ensure the casino is in compliance with federal andstate regulations.5. Computer operations of a corporation to evaluate whether the computer center isbeing operated as efficiently as possible.6. Annual statements for the use of management.7. Operations of the IRS to determine whether the internal revenue agents are usingtheir time efficiently in conducting audits.8. Statements for bankers and other creditors when the client is too small to have anaudit staff.9. Financial statements of a branch of the federal…

Prior to accepting a new audit engagement, a public accounting firm shoulda. Attempt to contact the predecessor auditors.b. Evaluate the integrity of management.c. Assess the firm’s resources to ensure that they are sufficient to permit the firm to accept the engagement.d. All of the above.

The fundamental objective of the audit of a company is to....?Select one:   a. Assess the effectiveness of the company’s performance b. Protect the interests of the minority shareholders c. Attest to the credibility of the company’s accounts d. Detect and prevent errors and fraud

An independent audit aids in the communication of economic data because the audit ________.         A. Confirms the exact accuracy of the management's financial representations.        B. Lends credibility to the financial statements.        C. Guarantees that the financial data are fairly presented.         D. Assures the readers of financial statements that any fraudulent activity has been corrected.

As an audit manager at Gung & Ho, CPAs, you have been scheduled to serve as the discussion leader for an in-office training session on consideration of the internal control structure in a financial statement audit. Gung & Ho’s audit practice consists of audits of privately-owned companies and not-for-profit organizations. RequiredPrepare an outline of comments you plan to make to indicate similarities and differences in how each of the following items is handled under a primarily substantive approach versus reliance on controlsapproach.a. Understand entity-level controls.b. Understand the flow of transactions.c. Identify what can go wrong (WCGW) for financial statement assertions.d. Identify relevant controls to test.e. Determine preliminary audit strategy.f. Perform tests of controls.g. Evaluate audit evidence, assess control risk, and re-evaluate audit strategy (if necessary).h. Report internal control weaknesses to those charged with governance.

Bright Star (Pty) Ltd is considering issuing corporate bonds and must have their financial statements audited as part of the process. You are required to: a) Describe the steps an auditor would take to give Bright Star (Pty) Ltds' prospective investors confidence that the financial statements are without significant inaccuracies. Focus on describing what processes will take place in the following steps: Initial Planning Risk Evaluation Collection of Audit Evidence Conducting Audit Procedures Evidence Assessment Audit Reporting b) Define 'reasonable assurance' in the context of an audit. c) In what ways does an auditor's assessment in Bright Star (Pty) Ltds' situation assist potential investors in reducing their investment risk?

Question: Assume that you are an auditor of a company. Explain any THREE categories of assertions that you will be testing when auditing the financial statements of the company. You are required to: (ii.) with proper justification and two sample transactions.

An auditor issues an audit report that expresses three opinions. Which of the following is not one of those opinions?   Question 23 options:   a)  whether management’s assessment of the company’s internal control over its financial reporting is appropriate   b)  whether management’s assessment that the financial statements are based upon the proper use of GAAP   c)  whether the company maintained effective internal control over its financial reporting   d)  whether the company’s financial statements present fairly the results of operations and cash flows in conformity with GAAP

Which of the following tasks is a function of an audit committee? Select one: a. Making decisions regarding the purchase of company assets. b. Appointing the external auditor. c. Preparing the financial report for audit. d. Overseeing the application of appropriate accounting policies and procedures to ensure appropriate disclosure.