Equipment acquisitions that are misclassified as maintenance expense most likely wouldbe detected by an internal control that provides for(1) segregation of duties of employees in the accounts payable department.(2) authorization by the board of directors of significant equipment acquisitions.(3) investigations of variances within a formal budgeting system.(4) independent verification of invoices for disbursements recorded as equipmentacquisitions.

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

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: Performance audits differ from financial audits in that A. The GAO's "general standards" do not…

A: The correct answer is B. In conducting performance audits, the auditors do not necessarily attest to…

Q: Which of the following outcomes is NOT a desired outcome of a financial audit?    Test internal…

A: A financial audit is an independent review of an organization's financial statements, records, and…

Q: ditor is testing internal control procedures that are evidenced on an entity's vouchers by matching…

A: Auditor is mainly responsible for mainataining proper control and maintain accounts in very proper…

Q: In which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…

A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: There are 2 types of substantive audit procedures:- Test of detail Analytical procedures

Q: Required: When evaluating internal control design effectiveness during the internal control over…

A: Types of Financial Statement Assertions:Existence/Occurrence: This assertion confirms that assets,…

Q: Based on the information in scenario C, classify the information (1-8) according to the elements of…

A: Here given the details of elements of Auditing findings which are involved with the each and every…

Q: control risk in order to reduce

A: Statement 1 is correct because by performing additional compliance tests, the auditor can ensure…

Q: Internal audit aims to conduct systematic scrutiny of records. Internal audit is described as…

A:

Q: The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy…

A: The on-site verification activity of a process or quality system, such as inspection or examination,…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: Which of the following is most likely to be presumed to represent fraud risk on an audit?

A: The correct answer is: (D) improper revenue recognition. There are a few different types of fraud…

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: An auditor discovered the following errors and irregularities while performing tests of controls:…

A:

Q: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

Q: Significant deficiencies in internal control are required to be reported a. Management of the unit…

A: A deficiency in internal control exists when the design or operation of a control does not allow…

Q: nternal control should be designed to provide reasonable assurance that       a. Management’s…

A: Auditing refers to the procedure of evaluating and analyzing the books of accounts prepared and…

Q: Which of the following conditions identified during fieldwork of an audit is most likely to affect…

A: The correct answer is: (D) Missing documents  Missing documents would most likely affect the…

Q: Describe situations in which the auditors’ report on internal control over financial reporting would…

A:

Q: Which of the following is not an implication of PCAOB Auditing Standard No. 5 and Section 404 of the…

A: It is a process implemented by organizations to provide reasonable assurance of achieving their…

Q: Which of the following auditor concerns would be least likely to cause the auditor to withdraw from…

A: Analyzing the options:A. The integrity of management is in question:Integrity is a fundamental…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Q: The current file of an auditor's working papers generally would not include * A. Flowchart of the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Under this engagement, the auditor concludes in his report, “nothing has come to my attention that…

A: Auditing: The process of examining, verifying, and inspecting the books of accounts by a financially…

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.