Assumptions of "going concern" are within the purview of the auditor.

Q: What are the main reasons for an audit, and what actions result in an audit being conducted?

A: 1. Compliance with laws and regulations: Audits are conducted in order to ensure that an…

Q: What is the primary duty of an auditor?

A: Primary duty of an auditor: Primary duty of an auditor is to express an opinion on the financial…

Q: Explain an example of auditor’s report.

A: A written letter which contains the opinion of the financial statements of the company by an auditor…

Q: Inherent risk and control risk differ from detection risk in which of the following ways? A.…

A: Inherent risk is the risk of misstatement of financial statements due to factors other than flaws in…

Q: How does the quality of audit evidence vary depending on who has provided it?

A: Audit evidence is primarily the data and accounts of the client and its associated third parties,…

Q: Explain what is meant by lapping and discuss how the auditorcan uncover it. Under what circumstances…

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Q: How does the prudent person concept affect the liability of the auditor?

A: Prudence is one of the accounting principle, which says that all anticipated losses should be…

Q: What are key audit matters? How do these affect the format of the audit report?

A: Key audit matters (KAM) refers to matters that are of significance and include complex or difficult…

Q: How might an auditor's individual characteristics affect his or her professional judgments about…

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Q: What are the differences between an external audit and an internal audit?

A: Internal audit is performed within organization by the auditor appointed by management.

Q: How is Audit Risk calculated?

A: Definition:   Audit Risk: The risk that arises when an auditor does not find any misstatement…

Q: What must an auditor understand with respect to internal auditors?

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Q: What type of audit report does a client typically want or hope for?

A: Audit report is the statement wherein the auditor gives its view on the financial statements of an…

Q: What is meant by the evaluation of a client's ability to continue as a going concern? What are some…

A: Going concern concept states that the financial statements of an entity should be prepared on the…

Q: EXPLAIN AND WHAT KIND OF AUDIT EVIDENCE NEEDED BY AUDITOR OR AUDITING?

A: Auditing is the process of examining a company's financial records, systems, and processes to ensure…

Q: How does an audit program differ from an audit plan, and what is its function?

A: An audit program and an audit plan are both crucial components of the auditing process, but they…