Assume that the client’s internal controls over the recordingand classifying of fixed asset additions are considered deficient because the individualresponsible for recording new acquisitions has inadequate technical training and limitedexperience in accounting. How will this situation affect the evidence you should accumulate in auditing fixed assets as compared with another audit in which the controls areexcellent? Be as specific as possible.

Q: For each of the following, determine how the effectiveness of the entity's internal control affect…

A: a)  As the entity's internal control is more effective. Auditor would assess less level of material…

Q: What should an auditor do if they discover they have forgotten to perform a substantive procedure?

A: Audit Procedure: A specific procedure undertaken by an auditor to procedure evidence in a particular…

Q: Minimum benefit from independent internal verification is obtained when: Select one: a.…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: In evaluating the fair value of net assets in an acquisition the auditor has to gather independent…

A: Audit Evidence -The data that the business's auditor obtains from the business is known as audit…

Q: Explain why deficiencies in internal controls might not always result in significant misstatements…

A: Internal controls are the systems, rules, and processes implemented by a company to ensure the…

Q: The risk that the auditors will conclude, based on substantive procedures, that a material…

A: The risk you are referring to is known as the risk of substantive procedures not detecting a…

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

Q: Auditors of financial statements are designed to obtain reasonable assurance of detecting material…

A: The auditor is required to obtain reasonable assurance that financial statements aa a whole are free…

Q: Which statement is false

A: Meaning of Internal control The process designed, implemented and maintained by those charge with…

Q: i need the answer quickly

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

Q: The risk that material errors will not be detected is directly controllable by the auditor through…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: The audit report provides reasonable assurance that thefinancial statements are free from material…

A: Introduction Audit report: The auditor's report expresses the auditor's judgment about the accuracy…

Q: he factor that distinguishes an error from fraud or other irregularities is A) materiality. B)…

A: Lets understand the basics. Audit is an examination of book of account in order to give an opinion…

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: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: Must all observations identified by an internal audit team during an assurance engagement be acted…

A: Internal auditing is an unbiased, impartial assurance and consultation process intended to enhance…

Q: the heightened risk of material misstatement. d. The auditor would perform all of the above…

A: Auditing is the detailed process of checking and verifying books of accounts and assets of the…

Q: Of the objectives of internal controls, which are the auditors most concerned about: a. Compliance…

A: The accounting and auditing procedures utilized by a company's finance department to guarantee…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: ZZZ best fraud case, auditors obtained third party confirmation to support the contract, reviewed…

A: Audit procedure: Auditor applies procedures to perform audit engagement. These procedures include…

Q: When the risk of material misstatement due to fraud is considered high in a particular area, which…

A: The risk of substantial misstatement due to fraud refers to the possibility of financial statements…

Q: true when the auditor determines the client has a low risk of material

A: First option is wrong because risk of material misstatements is judged not only based on the…

Q: Can the auditor obtain more audit evidence to compensate for the lack of perceived appropriateness…

A: The information that auditors rely on to back up their findings and judgements on the financial…

Q: s and obligation assertion when auditing payables and contrast this with the audit of asset…

A: An auditor is a person or a company hired by a company to conduct an audit. A person must be…

Q: Audit evidence obtained through inquiry of management about proper segregation of custodianship and…

A: Solution Reliability of audit evidence The reliability of audit evidence shall be considered based…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.