37 Evidence obtained by auditor are persuasive rather than conclusive in nature therefore they cannot be cent percent reliable. What is/are the basis of reliability of audit evidence? a. Only the sources from where the evidence obtained b. Both sources and nature of audit evidence c. Only the nature of evidence obtained d. None of the options

37 Evidence obtained by auditor are persuasive rather than conclusive in nature therefore they cannot be cent percent reliable. What is/are the basis of reliability of audit evidence? a. Only the sources from where the evidence obtained b. Both sources and nature of audit evidence c. Only the nature of evidence obtained d. None of the options

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

34. Which of the following statements regarding types of operational audits is false? Group of answer choices Special operational auditing assignments arise at the request of management The emphasis in an organizational audit is on how efficiently and effectively functions interact A functional audit has the advantage of permitting specialization by auditors An advantage of functional auditing is its ability to evaluate interrelated functions
29. This term means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. Group of answer choices Assurance Internal Audit None of the choices Operations Audit Consultancy
The phrase “except for the possible effects of the matter described…” appears in an audit report. This could be what type of opinion? a. Qualified Adverse Disclaimer Yes Yes No b. Qualified Adverse Disclaimer Yes No No c. Qualified Adverse Disclaimer No No Yes d. Qualified Adverse Disclaimer No Yes No e. Qualified Adverse Disclaimer Yes Yes Yes
3. Fraud is an _____________ misstatement of which any amount found during the audit will be considered material. Question 3 options: a) Unintentional b) Planned c) Proposed d) Intentional
estion 17 For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence? O A The more effective the internal control system, the more assurance it provides the auditor about the reliability of financial reporting by the client O B. The independent auditor's direct personal knowledge, obtained through inquiry, observation and inspection, is generally more persuasive than information obtained indirectly OC The timeliness of evidence is important as evidence is available only within certain time. OD None of the above.
9 Which of the following audit does an independent person usually carry out? a. Internal audit b. None of the options c. External Audit d. Bothe internal and external audit Clear my choice
A significant scope limitation, determined to be pervasive, existed during an audit. The CPA will likely issue what type of report? a. Qualified Disclaimer Adverse Yes No No b. Qualified Disclaimer Adverse No Yes No c. Qualified Disclaimer Adverse No Yes Yes d. Qualified Disclaimer Adverse Yes Yes No e. Qualified Disclaimer Adverse No No Yes
7. Analytical procedures: A. are not a type of audit evidence. B. are not required during the completion phase of the audit. C. performed during the planning phase of the audit are used as a substantive test in support of account balances. D. do not provide reliable evidence unless it is corroborated with other evidence. 8. Reasonable assurance allows for: A. low likelihood that material misstatements will not be prevented or detected by internal controls. B. no likelihood that material misstatements will not be prevented or detected by internal controls. C. moderate likelihood that material misstatements will not be prevented or detected by internal controls. D. high likelihood that material misstatements will not be prevented or detccted by internal controls. 9. Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the presentation. A. completeness and valuation B.…
12. The audit of revenue and receivables is of significant audit risk because Select one:a. The understatement of revenue results in a corresponding overstatement of net incomeb. Understatement of revenue has been a factor in many instances of fraudulent financial reportingc. Overstatement of revenue has been a factor in many instances of fraudulent financial reporting,d. The overstatement of revenue results in a corresponding understatement of net income
Why is the audit team more concerned with controlling the exposure to the risk of overreliancethan with the risk of underreliance?a. Only the risk of overreliance results in an incorrect audit decision.b. The risk of underreliance is not related to the audit team’s study and evaluation of internalcontrol.c. The risk of overreliance can ultimately result in the audit team’s failing to reduce auditrisk to acceptable levels.d. The risk of underreliance can be controlled by performing tests of controls during theinterim period.
2) During the audit of a client you come to the conclusion that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report. Accordingly, assuming nothing else has come to your attention, you should issue: a. A qualified opinion. b. An unmodified opinion. c. An adverse opinion. d. A disclaimer of opinion.
Which of the following is NOT an element of an assurance engagement? A. Audit assertion B. Responsible party C. Suitable criteria D. Independent auditor