Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. Professional skepticism requires that the auditor assume that management is a) reasonably honest b) Neither honest nor dishonest c) Not necessarily honest d) Dishonest unless proved otherwise

1. Professional skepticism requires that the auditor assume that management is a) reasonably honest b) Neither honest nor dishonest c) Not necessarily honest d) Dishonest unless proved otherwise

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

i need answer for all questions

1. Professional skepticism requires that the auditor assume that management is a) reasonably honest b) Neither honest nor dishonest c) Not necessarily honest d) Dishonest unless proved otherwise 2. Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement? i) Information about integrity of management ii) Disagreement with management concerning auditing procedures iii) Review of internal control system. iv) Organisation structure a) (i) and (ii) b) (ii) and (iii) c) (i), (ii) and (iii) d) i) and (iii) 3.The audit engagement letter, generally, should include a reference to each of the following except a) limitations of auditing b) responsibilities of management with respect to audit work c) expectation of receiving a written management representation letter. d) a description of the auditor's method of sample selection. 4.An auditor who accepts an audit but does not possess the industry expertise of the business entity should a) engage experts b) obtain knowledge of matters that relate to the nature of entity's business c) inform management about it d) take help of other auditors 5. What are analytical procedures? a) Substantive tests designed to assess control risk b) Substantive tests designed to evaluate the validity of management's representation letter c) Substantive tests designed to study relationships between financial and non- financial d) All of the above
Transcribed Image Text:1. Professional skepticism requires that the auditor assume that management is a) reasonably honest b) Neither honest nor dishonest c) Not necessarily honest d) Dishonest unless proved otherwise 2. Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement? i) Information about integrity of management ii) Disagreement with management concerning auditing procedures iii) Review of internal control system. iv) Organisation structure a) (i) and (ii) b) (ii) and (iii) c) (i), (ii) and (iii) d) i) and (iii) 3.The audit engagement letter, generally, should include a reference to each of the following except a) limitations of auditing b) responsibilities of management with respect to audit work c) expectation of receiving a written management representation letter. d) a description of the auditor's method of sample selection. 4.An auditor who accepts an audit but does not possess the industry expertise of the business entity should a) engage experts b) obtain knowledge of matters that relate to the nature of entity's business c) inform management about it d) take help of other auditors 5. What are analytical procedures? a) Substantive tests designed to assess control risk b) Substantive tests designed to evaluate the validity of management's representation letter c) Substantive tests designed to study relationships between financial and non- financial d) All of the above
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Fundamental Principles
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS