Audit evidence obtained directly by the auditor will not be reliable if Select one: a. it is provided by the client's attorney b. the auditor lacks the competence to evaluate the evidence c. it is impossible for the auditor to obtain additional corroboratory evidence d. the client denies its veracity

Audit evidence obtained directly by the auditor will not be reliable if Select one: a. it is provided by the client's attorney b. the auditor lacks the competence to evaluate the evidence c. it is impossible for the auditor to obtain additional corroboratory evidence d. the client denies its veracity

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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True/False 1. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 2. The auditor needs the client’s permission to send out “confirmations” 3. A customer’s response to a receivable confirmation request may contain restrictive language concerning its use. All restrictions would invalidate the reliability of the response as audit evidence.
when the auditor lack independence he or she will issue disclaimer opinion Select one: True False
Audit evidence obtained through inquiry of management about proper segregation of custodianship and recordkeeping functions is less reliable than evidence acquired through the auditor's personal observation. TRUE OR FALSE? WHY?
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.
Master
The Auditor prepares a disclaimer of opinion: a. When he cannot find any misstatement in the report. b. When the financial statements are not following GAAP. c. When he finds some discrepancy in the treatment of some items. d. When he is not able to obtain sufficient appropriate audit evidences about an issue.
The auditor shall never include in the same auditor’s report an unmodified opinion on a singleFS that forms part of those FS or ona specific element of those FS. True or False?
Auditor observations are not considered as audit evidence A. True B. False
The audit procedure used for a substantive test determines whether an auditor identifies a factual or judgmental misstatement. True False
2) During the audit of a client you come to the conclusion that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report. Accordingly, assuming nothing else has come to your attention, you should issue: a. A qualified opinion. b. An unmodified opinion. c. An adverse opinion. d. A disclaimer of opinion.