An auditor discovered the following errors and irregularities while performing tests of controls: 1. Goods received on October 3 were never placed in the storeroom but instead were taken to the receiving clerk’s home. Required: a. What control would have prevented or detected each of the aforementioned errors/irregularities? b. What tests should the auditor perform to test each control? c. To which financial statement assertion does the error or irregularity relate?

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

Q: In connection with the audit of financial statements, an independent auditor could be responsible…

A: Option A is the correct answer.

Q: An auditor discovered the following errors and irregularities while performing tests of controls:…

A: SOLUTION INTERNAL CONTROL  ARE THE RULES AND PROCEDURES IMPLEMENTED BY A COMPANY TO ENSURE THE…

Q: ditor is testing internal control procedures that are evidenced on an entity's vouchers by matching…

A: Auditor is mainly responsible for mainataining proper control and maintain accounts in very proper…

Q: In which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

Q: When performing audit procedures, the auditor is faced with an uncertainty of not detecting material…

A: Define sampling risk. Sampling risk is the risk that a sample statistic will differ from the true…

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…

Q: whether there is a reasonable possibility that the company's internal control system will fail to…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: What type of substantive testing (not test of controls) should be used for each of the following…

A: Substantive  testing is also known as substantive procedures, which are the procedures an auditor…

Q: 6. The auditors were not permitted to observe the taking of the client's physical inventory, a…

A: Auditing means the independent checking of company operation by outsider.

Q: In order to determine whether accounts payable are understated, auditors wish to obtain a sample of…

A: The objective of the question is to identify the most appropriate sampling method for auditors to…

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: i need the answer quickly

A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…

Q: analytical procedures

A: First option is correct because analytical procedures assist to identify the risk by comparing the…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? a.…

A: One kind of potential financial obligation known as a contingent liability is one that is predicated…

Q: Examples of Deviations. Madison Perry, CPA, is conducting an audit of Parker Inc. In sodoing, Perry…

A: Requirement a:

Q: When making a decision about the dollar amount in an account balance based on a sample, the audit…

A:

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: Which of the following is most likely to be presumed to represent fraud risk on an audit?

A: The correct answer is: (D) improper revenue recognition. There are a few different types of fraud…

Q: nancial information you determine that there is a material misstatement in the accounts receivable…

A: INDEPENDENT AUDITOR’S’ REPORT TO THE MEMBERS OF FREEFALL INCORPORATEDReport on the Standalone…

Q: which of the following regarding errors is correct Select one: a. intentional misstatement of the…

A: The financial statements are said to reflect the correct and accurate picture of the company when…

Q: Which of the following procedures is usually performed by the auditor to determine if obsolete…

A: Obsolete inventory is an inventory that gets obsolete and remains unserviceable and loses its…

Q: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

Q: Questions - Images to these questions are attached below. (a) Recommend SIX tests of controls the…

A: (a) Test of control Objective of the test The auditor should attempt to verify the validity of…

Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: ng dre You are appointed as an auditor for Sohar Electric Trading Company and finds that ontrols…

A: The auditors need to identify the risk of material statements in the financial report and respond…

Q: An auditor discovered the following errors and irregularities while performing tests of controls:…

A:

Q: For which of the following audit tests would an auditor most likely use attribute sampling?…

A: Audit tests: An audit test is a sample drawn from a larger population with the intention of testing…

Q: maximur

A: the auditor after considering the client's internal control over receivables increased the…

Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A.…

A: in order to plan the nature timining and extent of the audit procedure that is needed to perform the…

Q: Which of the following conditions identified during fieldwork of an audit is most likely to affect…

A: The correct answer is: (D) Missing documents  Missing documents would most likely affect the…

Q: During the taking of physical inventory, the controller intentionally withheld several inventory…

A: If the auditor had observed the physical inventory count, they would have seen that the controller…

Q: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Q: An auditor discovered the following matters while performing tests of controls: 1.An obligation for…

A: Internal Controls: The process designed, implemented, and maintained by those charged with…

Q: Course: Auditing  You are the audit partner of ‘Power Auditors’ and you are auditing your client…

A: The opinion which is formed and communicated by the auditor to the organization after assessing the…

Q: The following are specific balance-related audit objectives applied to the audit of accounts…

A: The first specific related objective deals with the amounts which must not be involved in the…

Q: Which of the following substantive procedures would most likely help an auditor determine whether…

A: Substantive procedures are performed to detect the material misstatement or fraud at the assertion…