Auditors must use their professional judgment_O to distinguish if a misstatement or scope limitation is just material or pervasively materialO to distinguish if a misstatement or scope limitation is just immaterial or pervasively materialO to determine if the firm has the ability to pay the auditor for services renderedO in selecting the client's audit committee

In the realm of auditing, professional judgment is a critical element that empowers auditors to make…

Answered: Auditors must use their professional…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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
Which of the following should not be considered at the planning phase of the audit? a.identification of analytical procedures to be used in examination b.understanding of the legal framework of the client c.the extent of materiality d.the type of audit opinion to be given
Many companies request that their auditors provide them with other services, such as tax or consultancy, as well as the external audit. Discuss the arguments for and against auditors providing non-audit services.
1. What is appropriate audit evidence? How does an auditor determine whether the appropriate audit evidence is sufficient to support the opinion expressed in the auditor's report? 2. Explain the types of audit procedures
KA In order to form an opinion, the auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. The conclusion should consider and take into account: answer the below in essay form The evaluation of the financial statements as a whole should include what other significant elements and requirements are needed to formulate an auditor's report.
CHOOSE THE BEST ANSWER Auditing is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria an communicating the results thereof to interested users. The objective obtaining and evaluating of evidence describe that the auditor A. Examining the bases for the assertions ( representations) and judiciously evaluating the results without bias or prejudice either for or against the individual (or entity) making the representations B. The auditor must be qualified to understand the criteria used and the competence to know how and what evidence to accumulate to reach the proper conclusion C. These are standards against which the assertions or representations are judged. This must be specific rules prescribed by a legislative body, budgets and other measures of performance set by management D. The…
Documentation of an Audit Data Analytic (ADA), should be sufficient enough such that: O An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made An experienced auditor, who is familiar with the engagement could understand the conclusions reached and significant judgments made O An investor looking into the company could understand the conclusions reached and significant judgments made O Both "An investor looking into the company could understand the conclusions reached and significant judgments made" and "An experienced auditor, with no prior connection to the engagement could understand the conclusions reached and significant judgments made" are correct
Which of the following statements is correct when obtaining an understanding about the client's business? A.Preliminary knowledge about the entity's industry must be obtained after accepting the engagement to determine whether the auditor has the necessary knowledge to perform the audit. B.Following the acceptance of the engagement, the auditor should obtain detailed knowledge about the client's business preferably at the start of the engagement C.The level of knowledge requikt of the auditor is ordinarily more than the level of knowledge possessed by management. D.For continuing engagements, the auditor may no longer obtain knowledge about the client's business.
Audit evidence is more persuasive when : A_Information is provided by the board of directors of the company B_ The audit team comprises of high quality personnel C_ Audit evidence is inconsistent with that from another D_ Items of evidence from different sources or of a different nature are consistent
Ordinarily, what source of evidence should least affect audit conclusions?a. External documentary evidence.b. Inquiry of management.c. Documentation prepared by the audit team.d. Inquiry of entity legal counsel.
With regard to corrective action on audit results, which of the following is not theinternal auditor’s responsibility?(1) Soliciting auditees’ suggestions for corrective actions.(2) Recommending possible alternative corrective actions.(3) Directing the corrective actions.(4) Determining that the corrective actions are responsive to the audit results.(5) Evaluating new policy statements to determine whether they address the unsatisfactory conditions disclosed in the audit results.
The evidence that is gathered by an auditor plays a crucial role in the results of the audit and therecommendations that are provided to management. There are TWO (2) attributes with regard to evidencethat an auditor will need to meet before concluding the audit. What are these attributes and why are theyimportant?

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