Answered: audit program is completed during the…

Business

Accounting

audit program is completed during the planning phase of the audit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: S1: Regarding communications between auditors, the predecessor auditor has the duty to initiate…

A: Business organizations are required to audit their financial statements so as to ascertain their…

Q: 3 types of misstatements

A: Misstatements are the under or over-statements of account balances or class of transactions…

Q: The auditor is required to prepare audit documentation sufficient to enable an experienced auditor,…

A: Audit documentation is the principal record of auditing procedures applied, evidence obtained, and…

Q: A CPA audits the financial statements of an issuer. Which statement relating to CAMs is TRUE? a. If…

A: Critical Audit Matters which is also written as CAMs are the matters which arises from the audit and…

Q: Maintaining an unbiased attitude during the audit illustrates: Select one: a. Client…

A: The auditor should maintain integrity, professionalism skepticism, professional competence,due…

Q: The auditor shall communicate with those charged with governance an overall approach and scope of…

A: The auditor shall communicate with those charged with governance an overall approach and scope of…

Q: What does it mean the audit documentation should be self-explanatory? O a. It shall be sufficient to…

A: An audit is a process of checking and verifying the books of account and financial information of…

Q: The auditors have a responsibility to design the audit to provide reasonable assurance of…

A: The Primary responsibility of the auditors is to a express an opinion on the financial statements…

Q: ll statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : A

Q: Directions: Please select the appropriate answer on the statement below; B - If the statement is…

A: Audit procedure is different types of steps that are followed by an auditor while conducting the…

Q: audit engagement

A: Statement 1 is correct because an audit engagement is opinion based. The auditor conducts the…

Q: If the audit firm is performing an integrated audit for a public company. there is an expectation…

A: The objective of the question is to understand the role of the auditor, the prior auditor, and the…

Q: (A) The requirement is to find the best statement concerning an auditor’s assessment of…

A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…

Q: 1: The documentation of internal controls pertain only to those controls that are relevant to the…

A: Answer: 1: The documentation of internal controls pertain only to those controls that are relevant…

Q: The main purpose of the auditor's consideration of internal control for a non-SEC client is to A.…

A: Audit of internal control is conducted by auditors to assess its efficiency and effectiveness and…

Q: The auditor use the analytical procedure at various stages of audit: 1. Evaluate the operating…

A: Auditing is performed so as to anlayze the financial statements of the business for their…

Q: Identify the correct order of steps for an auditor when applying a top-down approach to select…

A: The top-down approach is used to detect risks in the internal controls and gain an overall…

Q: QUESTION 2 The purpose and objective of an auditor is to form opinions on whether the operations of…

A: The objective of audit is to give opinions on financial statements deals with whether the financial…

Q: The auditor should assess control risk for each relevant assertion by evaluating the evidence…

A: Relevant assertion: The assertion that shows the possibility of happening a material misstatement is…

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: The following are the three types of audits according to subject matter, except a. Financial…

A: Lets understand the basics. Auditing is a verification of books of account in order to conclude…

Q: The audit report states that the audit provides: a. complete assurance that the financial statements…

A: An audit report is a formal document that provides an independent assessment of an organization's…

Q: A service organizations has an auditor issue one of two types of reports on their operations: 1)…

A: Service organization It is organization which have not started for the sole purpose of making…

Q: 4-What do you understand by confirmation in the context of audit procedure for obtaining audit…

A: Introduction:- Auditing may be defined as examination or inspection of books of accounts of any…

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: S1: The subsequent events period extends to the date of management representation letter and the…

A: To make sure that financial information is presented fairly and properly in compliance with the…

Q: Which of the following is the independent auditor’s principal purpose for obtaining an understanding…

Q: When auditors become aware of noncompliance with a law or regulation committed byclient personnel,…

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: In an audit of financial statements for a company, the auditor considers internal control a. To the…

A: Audit refers to the examination or checking of the financial statements or the books of company in…

Q: Internal auditors may not perform: a. Audits of financial statements resulting in reports intended…

A: Lets understand the meaning of internal auditors. As the name suggest internal auditor is a person…

Q: STATEMENT 1: Audit documentation provide the principal support for the auditor's opinion on the…

A: Solution: 1. True, audit documentation provide the principal support for the auditor's opinion on…

Q: When planning the audit, the auditor must make enquiries of management. Which one of the following…

A: When planning an audit, the auditor must make enquiries of management about fraud to assess the risk…

Q: assertions

A: Audit Assertions are claims made by management through financial statements and those are tested by…

Q: Obtaining an understanding of internal control requires the auditor to reach a conclusion about the…

A: Ans. Let us analyze the statements separately. Statement 1 says that obtaining an understanding of…

Q: tement 1: An entity wherein the client has a nominal interest, is considered a related. Statement 2:…

A: Auditing refers to the process of assessing and checking all the financial documents of a company…

Q: n planning an audit?

A: Auditors Responsibility is to plan the audit of financial statements so that it helps the auditor to…

Q: an audit firm is giving advice on accounting or control systems and helping the client with…

A: In the given case option C is correct.. Since it is neither a intimidation Threat nor a self review…

Q: perform in auditing

A: The statement S1 is true because the auditors plan the substantive procedures based on the result of…

Q: state whether each of the following terms is correct or incorrect and correct the false one:…

A: An audit is a thorough scrutiny of the books of accounts and related documents of an entity.

Question

Statement 1: In first-time audits, the audit program is completed during the planning phase of the audit.

Statement 2: The auditor's primary consideration regarding the client's internal controls is the provision of constructive suggestions to management regarding the company's internal controls.

a. 1st statement is false, 2nd statement is true

b. 1st statement is true, 2nd statement is false

c. both statements are true

d. both statements are false

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Evaluation of options

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Business risk must be assessed in performing an audit. a) Define business risk in association with an audit and describe several sources of such risk. b) How does business risk relate to the performance of preliminary analytical procedures in an audit? c) There are four major areas in planning an audit engagement and there are sub-parts to each of the four major areas. Please identify the four major areas and the sub-parts that are associated with the major areas.
When completing the audit of internal controls for a public company, AS 2201 requires auditors to report on
The auditor shall plan the audit so that in can be performed effectively. The auditor shall study and evaluate the internal control system of the client to express an opinion about the operating effectiveness of such internal control system Group of answer choices False, True False, False True, True True, False
10. Please help me asap!!!
7
PLEASE ANSWER THIS ASAP. THANK YOU SO MUCH. 1.Which of the following statements is incorrect? a. Management assertions are implied or expressed representations by management about classes of transactions, account balances and presentation and disclosures contained in the financial statements. b. Transaction cycles may vary from one entity to another and may also be affected by the nature of industry of the client. c. The primary goal of an auditor in an audit is to issue an opinion that the financial statements of an entity are fairly stated, in all material respects, in accordance with the applicable financial reporting framework. d. Reasonable assurance is moderate but not absolute level of assurance that the financial statements are free from material misstatements. 2. Which of the following statements does not pertain to responsibilities of management and those in charge of governance? a. Establish and implement internal controls relevant to the preparation of financial reports.…
Professional skepticism is a. An attitude that includes a questioning mind. b. The auditor's application of relevant training, knowledge and experience. c. One of the professional code of ethics. d. Not necessary in auditing of the entity.
STATEMENT 1: Audit working papers are the documents accumulated by the auditor showing the procedures performed, audit testing applied, information obtained, and conclusions reached. STATEMENT 2: Audit working papers aid the auditor in the conduct and supervision of the audit engagement. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct