41. Which of the following statements is/are correct? Statement I. Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits. Statement II. Current professional auditing standards require external auditors to use internal auditors for direct assistance on external audits. Group of answer choices None of the statements Statement II only Statement I only Statements I and II

41. Which of the following statements is/are correct? Statement I. Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits. Statement II. Current professional auditing standards require external auditors to use internal auditors for direct assistance on external audits. Group of answer choices None of the statements Statement II only Statement I only Statements I and II

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 25 When performing an audit of a public company, PCAOB standards do not require the auditor to perform test on internal controls if going straight to substantive audit procedures are more cost effective and provide will sufficient evidence to express an opinion on the financial statements taken as a whole. True False
9. In which of the following types of reports do the auditors express negative assurance? Group of answer choices Letters for underwriters. Reports on audits of financial statements on a basis other than generally accepted accounting principles. Reports on audits of specified accounts. Reports on summary financial statements.
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
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
17. Which of the following statements is/are correct? Statement I. Internal auditors should have the authority to require implementation of suggestions for improvement. Statement II. One disadvantage of functional auditing is the failure to evaluate interrelated functions. Group of answer choices Statement II only None of the statements Statement I only Statements I and II
The standard uniquified audit report Select one: a. is sometimes called a disclaimer report b. can be issued only with an explanatory paragraph c. can be issued if only a balance sheet and income statement are included in the financial statements. d. is sometimes called a clean opinion
b) Which of the following statements regarding additional information that is included in a document containing audited financial statements is not true? Group of answer choices 1: Additional information can be subject to certain limited procedures by the auditor. 2: Additional information can be the subject of another information opinion. 3: Additional information can be the subject of an in-relation-to opinion. 4: Additional information can be subject to a limited review by the auditor.
{Auditing} 23. From the options given below, identify an opinion formed by an auditor when financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. a. None of the options b. Unqualified opinion c. Negative opinion d. Qualified opinion
25. Which of the following would not be included in an accountant's review report on the financial statements of a nonpublic entity? Group of answer choices A statement that the review was made in accordance with generally accepted auditing standards. A statement that all information included in the financial statements is the representation of management. A statement describing the principal procedures performed. A statement describing the auditor's conclusions based on the results of the review.
{Auditing} 33. The auditor shall express ________opinion when he concludes that there are possibilities of material misstatements that are pervasive to the financial statements. a. Adverse b. Qualified c. None of the options d. Disclaimer
16-In the context of documentation of the audit procedures performed and audit evidence obtained the ISA 230 says "Audit documentation is not a substitute for the entity's accounting records". Which one of the following statements is appropriately describing the documentation of the audit procedures performed and audit evidence obtained? a. None of the options correctly describe the statement b. Audit documentation is not required when accounting records are available c. Accounting records are not required when audit documentations are available d. Both accounting records and audit documentations are essential
5. Which of the following is not a primary purpose of audit documentation? * A. To assist in the formulation of audit conclusion B. To facilitate the review of the audit procedures done by the audit team C. To coordinate the conduct of the audit D. To prepare evidence in the event of a suit against the client E. None of them