As per ISA 570, Who of the following is responsible for assessing the entity going concern assumption? Assessment of entities going concern is responsibility of shareholder. Assessment of entities going concern Assessment of entities going concern is responsibility of auditor. Assessment of entities going concern is responsibility of both management and auditor. responsibility of management.

As per ISA 570, Who of the following is responsible for assessing the entity going concern assumption? Assessment of entities going concern is responsibility of shareholder. Assessment of entities going concern Assessment of entities going concern is responsibility of auditor. Assessment of entities going concern is responsibility of both management and auditor. responsibility of management.

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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please answer the two problem
Which of the following attributes most clearly differentiates a CPA who audits management's financial statements as contrasted to management? a. Integrity b. Competence. c. Independence. d. Keeping informed on current professional developments.
Fundamental Principles (Comprehensive). In each of the following, identify which ofthe elements of the fundamental principles is most applicable. In addition, discuss whataction(s) (if any) you believe auditors should take with respect to these issues.a. An entity has contacted you about performing its audit engagement. You have not previously served a client in the entity’s industry, which has many industry-specific accounting issues that are both technical and complex.b. An entity has entered into a number of lease agreements. Based on the requirements ofGAAP, you believe that these obligations meet the criteria for being classified as capitalleases; however, the entity has elected to treat these leases as operating leases, providingfull and complete disclosure of this treatment in the footnotes to the financial statements.c. Because of a disagreement with its current auditors, an entity has contacted you aboutconducting its current-year audit. However, because the previous auditors…
In your words, what is the legal responsibility of the auditor?
Which section of the regulations require a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards? If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?
Which of the following parties is responsible for the fairness of the representations made in financial statements? * O AICPA. Independent auditor. O Audit committee. O Client's management.
Explain what is meant by information accompanying basic financial statements. Provide two examples of such information. What levels of assurance may the CPA offer for this information
PSA 570 (Going Concern) states that a fundamental principle in the preparation of financial statements is the going concern assumption. Under this assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws and regulations. The responsibility to make an assessment of an entity's ability to continue as a going concern rests with the Auditor Entity's management SEC Entity's creditors
Which of the following audit objectives is to validate the assertion of presentation and disclosure? * A. Investment income is included on the statement of comprehensive income at the appropriate amount B. Income statement related items are appropriately recorded in the proper accounts in the statement of comprehensive income C. The entity owns, or has a legal right to the investments included on the statement of financial position D. Investments and related investment income accounts are properly classified described and disclosed in the financial statements, including notes, in accordance with the applicable PFRS
Which of the following factors are not relevant to the judgement involved in management's assessment of the entity's ability to continue as a going concern? Oa. The size and complexity of the entity and the nature and condition of its business O b. The degree of uncertainty associated with the outcome of an event or condition Oc. The degree of uncertainty associated with the internal control system of the entity O d. Judgment about the future is based on information available at the time at which the judgment is made
Question 19 means accountability to those existing and potential resource providers and others external to the entity who make economic decisions but are not in a position to demand reports tailored to meet their particular information needs.
37. The following are value the auditors provide EXCEPT Group of answer choices Internal auditors serve the public and common interests by making sure that owners receive the return on their investments that they are entitled to, and that the means of generating those profits are within the confines of the law. Internal auditors contribute to the principal-agent relationship by making sure that these duties are defined, that structures are set to ensure behaviors are aligned with these objectives and making recommendations to the board and senior management when there are discrepancies jeopardizing the success of these arrangements. None of the choices Internal Auditors can help management identify, plan for, and respond effectively to the primary and secondary stakeholders, the organization will encounter less pushback and it will likely be able to operate with fewer disruptions. Internal Auditors are change catalyst.