A moral or legal obligation to ensure the safety or well-being of others Could be defined as duty of care. An auditor's duty of care to a client would most likely be breached if the auditor failed to:  Select one: a. comply with the Cooperation Act 2001 & all relevant auditing standards.  b. Resolve their staffing issues. c. conduct the audit for the cheapest price. d. Prevent & detect earnings of management.

Q: For each of the situations described below, identify the category of threat to the fundamental…

A: a) An auditor has shares in a company which is an audit client of theirs.Category of Threat:…

Q: The company being audited has an internal auditor who is both competent and objective.The…

A: Answer:   Option b.

Q: As IT auditors, it's critical that we establish a common "risk" language with management.…

A: IT auditors and management can communicate and make decisions more effectively when they have a…

Q: Management is primarily responsible for maintaining effective internal control and ensuring the…

A: If management does not create an effective control environment, the company may face financial…

Q: Which of the following statements is characteristic of monitoring activities within the internal…

A: Internal controls system includes a set of rules, policies, and procedures an organization…

Q: does this request?

A: An auditor is a person appointed to check the accuracy and authenticity of the books of account or…

Q: Describe a situation that would require an auditor to give an unmodified opinion without a standard…

A: Introduction: Unmodified opinion generally gives when the financial statements showing as fairly. It…

Q: Inherent risk Select one: a. All of the others are correct. b. Involves auditors attaining…

A: An inaccuracy or omission in a financial statement that is not caused by a breakdown in internal…

Q: Which of the following statements would most likely appear in an auditor's engagement letter? a.

A: Audit report represents the report prepared by an auditor that shows the opinion of the auditor on…

Q: Companies of all sizes try to reduce business risks, create disaster recovery plans, and also…

A: Business risk Business risk is the risk of lowering the profits of a company. Any factor that…

Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

A: There is a possibility of the occurrence of fraud by the employees or management of the company.…

Q: If the auditor performing an integrated audit identifies one or more material weaknesses in a…

A: Material weakness is defined as a deficiency or the combination of deficiencies in the company…

Q: What possible actions would an auditor might take if a client’s financial statements depart from…

A: Introduction: A set of financial statements summarizes a company's monetary results, financial…

Q: The acceptable audit risk for the financial statements overall tends to be low and is set by the…

A: In auditing, setting the acceptable audit risk for financial statements is crucial for ensuring the…

Q: When planning an audit, which of the following is not a factor that affects auditors’ decisions…

A: An auditor is a professional body appointed by firm or enterprise to examine books of accounts and…

Q: Lawsuits against CPA firms are most likely to allege that the auditors were negligent in not…

A: The objective of the question is to identify which type of auditing error is most likely to result…

Q: As an auditor, you run across some abnormalities in a company’s books. What you find, makes you a…

A: An Auditor’s report is a letter by auditor in which information containing that company’s financial…

Q: Auditors are not responsible to detect all errors in the financial statements. Discuss the concepts…

A: Professional skepticism is recognizing the possibility that a material misstatement due to fraud…