An auditor's engagement letter most likely would include a statement regardıng: 1. Conditions under which the auditor may modify the preliminary judgment and materiality. 2. Management's responsibility to provide certain written representations to the auditor. 3. Internal control activities that would reduce the auditor's assessment of risk. 4. Materiality matters that could modify the auditor's preliminary assessment of fraud. O 2

An auditor's engagement letter most likely would include a statement regardıng: 1. Conditions under which the auditor may modify the preliminary judgment and materiality. 2. Management's responsibility to provide certain written representations to the auditor. 3. Internal control activities that would reduce the auditor's assessment of risk. 4. Materiality matters that could modify the auditor's preliminary assessment of fraud. O 2

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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What do auditors consider when determining the extent to which the internal auditors’ work will affect the auditors’ procedures? A. The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered. B. Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered. C. Only the amount of subjectivity involved in evaluating the evidence gathered. D. Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.
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Auditors must use their professional judgment_ O to distinguish if a misstatement or scope limitation is just material or pervasively material O to distinguish if a misstatement or scope limitation is just immaterial or pervasively material O to determine if the firm has the ability to pay the auditor for services rendered O in selecting the client's audit committee
The requirement for an attitude of scepticism means that the auditor should A) perform additional tests of controls to increase the probability of discovering fraud or errors. B) plan and conduct the audit with an attitude of distrust in management. C) not be blind to evidence that suggests the documents, books, or records have been altered or are incorrect. D) not consider management's explanation as evidence on any subject
If the auditor determines that an internal control deficiency is either a significant deficiency or a control deficiency, the auditor will issue a/an _______ on internal controls over financial reporting (ICFR) A. adverse opinion B. unmodified opinion C. unqualified opinion D. modified opinion